Did you ever wonder about how to send money to Uganda? In this article, we will throw light on the volume of remittances the Ugandan diaspora spread across the world sends home. We will also look at a few ways the remittances are sent and a few major reasons why people send remittances back home whether hailing from Uganda or elsewhere across the world.
Uganda is a Sub Saharan African country whose majority of the population is living well below the poverty line. Rather many people are suffering from abject poverty which has pushed the large portions of the population outside of Uganda to find work elsewhere in the world to enable their families to lead decent lives by making ends meet viably.
Now let’s take a look at the remittances.
Remittance: – The word remittance is derived from the root word ‘remit’ which means ‘to send back’. Thus remittances can be defined as the amount of money which one party sends to another party particularly from overseas.
Now let’s take a look at the major reasons why people’s money transfers to Uganda.
Property: – Purchase of property in normal circumstances for middle-class people from around the world is usually difficult. Earning a living in a distant land is difficult, but at the end of the day, the difference between two currencies is what transforms the said difficulty into enhanced purchasing power.
Education: – Remittances also augment the earning to enable a high education standard for the children in the family.
Financial help: – With the help of remittances you can help your family and friends by sending in the money with which they can take care of their liabilities.
Accommodation: – Remittances help you pay for the accommodation, be it a rented house or the one you look forwards to buying.
International travel: – Remittances help make international travelling easy and convenient financially.
Family functions: – Online money transfer to Uganda as remittance also help you pay and arrange for the functions in the family such as weddings etc.
Mortgage payment: – With the help of remittances you are not supposed to make extra payments for mortgages because remittances already cover this amount.
Payment for work: – Delegation of responsibilities to people in foreign lands requires making of payments necessary to complete works. Remittances make this easy also.
International purchases: – Purchasing stuff from a foreign land is also easy with the help of remittances.
Let’s now see what the volume of Ugandan remittances is.
Ugandan remittances: – In the year 2019, the volume of Ugandan expatriates send money to Uganda online was 1.4 billion USD which dropped to 1.1 billion USD in 2020, a report of the world bank noted. The same also said that the Ugandan remittance fell by 300 million USD in the year 2020 owing to Covid-19. But, despite all of these declines, Uganda still made its way into the list of top ten Sub Saharan African countries as the recipient of remittances.
Remittances can be transferred through a cheque, an e-cheque, a debit card or a credit card or a bank or the companies offering online money transfer services such as ACE Money Transfer services.
Conclusion: – By now, we have understood what remittances are and why people send remittances and how. ACE makes it even easier and convenient for Ugandans to send remittances.