Government hails Stanbic Bank for revolutionizing Uganda’s money remittances sector
The Governor also outlined ongoing efforts by the Bank of Uganda to support the remittance ecosystem through modernization and policy reform, including improvements in payment infrastructure, reduction of transaction costs, and fostering a regulatory environment conducive to innovation while maintaining financial stability.
Stanbic Bank has received high praise from the Government of Uganda for its pivotal role in transforming the country’s money remittances ecosystem, leveraging digital innovation to enhance financial inclusion and economic development. The commendation underscores a significant milestone in the evolution of Uganda’s financial sector.
The recognition was formally extended by Dr. Michael Atingi-Ego, Governor of the Bank of Uganda (BoU), during the 8th Annual Uganda Bankers Association Conference held at the Kampala Serena Hotel. The conference, themed ‘Harnessing the Potential and Maximizing the Impact of Remittances on Development’, provided the perfect platform to highlight the vital role of these financial flows.
In his address, Dr. Atingi-Ego lauded financial institutions like Stanbic for their “bold strides in leveraging digital technology to enhance remittance services.” He underscored the critical importance of remittances to Uganda’s socio-economic fabric, noting that in 2023 alone, the country received USD 1.4 billion, accounting for nearly 3% of its GDP.
“This is more than just a statistic; it reflects the resilience, sacrifice, and unwavering commitment of our diaspora, who continue to build bridges of hope and prosperity from afar,” Dr. Atingi-Ego stated, applauding Stanbic Bank’s strategic efforts to improve digital platforms that empower the diaspora community and their families back home, making banking more accessible, efficient, and cost-effective.
The Governor also outlined ongoing efforts by the Bank of Uganda to support the remittance ecosystem through modernization and policy reform, including improvements in payment infrastructure, reduction of transaction costs, and fostering a regulatory environment conducive to innovation while maintaining financial stability.
“I invite stakeholders to share insights on your strategies within your mandates and recommend additional initiatives the BoU can pursue in collaboration with other stakeholders, as we work towards transforming Uganda’s remittance landscape,” he added.
Delivering a keynote address, Stanbic Bank’s Chief Executive, Mumba Kalifungwa, affirmed the bank’s commitment as a “strategic partner” in Uganda’s development agenda. “Financial institutions play a crucial role in unlocking the development potential of remittances. Stanbic Bank is not just a service provider; we are strategic partners in Uganda’s growth. Our Flexipay platform enables seamless cross-border transactions, reduces costs, and enhances economic resilience,” Mumba stated. He emphasized the importance of sustainable collaboration to address sector bottlenecks, noting that “unlocking the full potential of remittances requires concerted efforts.”
Betty Amongi, Uganda’s Minister of Gender, Labour and Social Development, reiterated the growing economic power of migrant workers. She highlighted that as of 2024, remittances have surged to USD 1.4 billion, a significant increase from USD 700 million in 2020. Amongi stressed the need for these funds to flow through formal channels “to enable proper tracking and maximize their developmental impact.”
Salim Kitagenda, Head of Products at Stanbic Bank, provided detailed insights into the bank’s digital advancements designed to better serve both local and international customers. “From a payments perspective, we’ve partnered with global money transfer organizations to ensure faster transactions, lower costs, and seamless account management through FlexiPay,” he explained. Kitagenda noted a sustained increase in remittance inflows, largely driven by young Ugandans seeking employment primarily in the Middle East, North America, and Europe.
He further contextualized the global impact of remittances, stating, “Globally, approximately one billion people are impacted by remittances. Each year, around 200 million diaspora members send money home, supporting about 800 million family members. Over the past decade, remittances to low- and middle-income countries like Uganda have exceeded $5 trillion.”
Launched in 2022, Stanbic’s Flexipay has rapidly grown to become a popular digital payment platform, providing accessible and affordable financial services, especially for those without traditional bank accounts. In 2024 alone, the platform onboarded over 260,000 new users and processed more than 11,000 transactions, totaling UGX 30 billion.
According to the International Fund for Agricultural Development (IFAD), migrant workers typically send home approximately USD 200 to USD 300 every one to two months. While this represents about 15% of their earnings, these remittances can constitute up to 60% of a receiving household’s total income, serving as a vital lifeline for survival, resilience, and growth.
Stanbic Bank’s pioneering efforts, particularly through platforms like FlexiPay, exemplify how strategic digital investments can harness the immense potential of remittances, contributing significantly to national development and improving countless lives across Uganda, aligning with the broader goals of achieving the United Nations Sustainable Development Goals by 2030.
