Do you know how to send money to Uganda? In this article, we will discuss how online money transfer companies help Ugandan expatriates send money home or transfer remittances.
We will also look at the remittances and give a cursory glance to the Ugandan diaspora and its remittance economy for a better understanding of the topic under discussion.
Uganda remittances:- In 2019, the size of remittances Uganda received from its large diaspora spread worldwide was 1.4 billion USD which fell to 1.1 billion US Dollars in 2020, a World Bank report noted.
It was also mentioned in the same report that the Ugandan remittances fell by 300 million US Dollars due to Covid-19, whose advent halted the global economic activity with the third world countries being worst hit by the virus.
Brief background:- Uganda is a Sub Saharan African country suffering from abject poverty resulting from political turmoil and instability. This has pushed many Ugandans out of the country to find a better source of earning, which is not possible in Uganda given the extremely slow movement of its economy. Therefore, the large Ugandan diaspora spread globally has helped stabilize their home economy by money transfers to Uganda as a remittance.
Let’s now define remittance.
Remittance:- The word remittance is derived from the root word ‘remit’, which means ‘to send back’. Thus, we can define remittance as an amount of money sent to one party by another, particularly overseas.
How Uganda regulates remittances:- Because a large portion of Uganda population is living an expatriate life in different parts of the world, the Uganda government has adopted a relaxed set of regulations to facilitate the transfer of remittances and also these regulations are looked after by the Bank of Uganda which is the central bank of Uganda and is owned fully by the Ugandan government. Through the regulations by the central bank of Uganda, people can convert their local currency, Shilling (UGX), into any other world currency.
With this, the central bank of Uganda ensures that the companies through which people transfer funds and remittances operate in a viable and professional work environment so that both the senders and recipients of funds do not face troubles.
Let’s now take a look at a few ways online money transfer companies are helping Ugandan expatriates send money back home.
Convenience:- These companies have a vast network of offices spread across different countries, so people do not have to travel to far-flung areas to book transactions. You can send money to Uganda online.
Transaction on the go:- Many companies have launched their apps which can be installed on smartphones enabling people to book, initiate and even complete a transaction while on the go.
Saving time:- Transferring funds through online companies to Senegal or from Uganda saves huge amounts of time. Through these companies, the Ugandan expatriates can transfer funds in a matter of a few minutes to a few hours, unlike the traditional bank wire transfers taking between three to five business days.
Low cost:- Since these online companies charge a low fee for transferring money, such as ACE, it enables the Ugandan expatriates to save more which, in turn, helps them send more.
Customer services:- Customer service representatives of online money transfer companies answer queries and guide the Ugandan expatriates about how to book, initiate and complete a transaction.
Conclusion:- Online money transfer to Uganda and other countries has never been easier. With the advent of technology, these online money transfer companies are helping expatriates send and collect funds as and when is convenient and easy for them by assisting them to save their hard-earned money, time and energy.