Uganda: The Sixth Largest Market for Digital Cash Transfers

Online money transfers have become so popular in African countries. You could transfer money to about anyone, no matter where they live in the world. Add to it the fact that you could even make payments to other companies, no matter whether you are choosing a product or a service. For instance, with depositing with Betway made easy, you could make online payments in seconds, and play your favorite online games without worry.

On Monday, the Daily Monitor took to Twitter and announced that Uganda is the sixth largest market for digital transfers.

WorldRemit has become a global leading service provider for digital money transfer. They operate in 199 countries which are categorized into two:- sender countries( 52) and receiver countries (147). Uganda is a receiver country and has been placed sixth in the world and has made it to top 5 in Africa.

All this success of digital money transfer can be attributed to the fact that many Ugandans live in the diaspora. A lot of them live in ‘sender’ countries such as the UK, Saudi Arabia, Sweden and the USA. Therefore they send money back home making the whole process very productive.

In 2017, it is estimated that Uganda received over $1.4 billion. This accounted for 5% of the total money sent throughout the world. The World Bank has estimated that by 2030 the remittance will reach $600 billion across all digital money transfer platforms.

The flexibility of the Ugandan market is what is making digital money transfer easy. For instance, there are a lot of Ugandans who live in the UK. It is the largest market for digital money transfer to Uganda. In addition, there is no limit to the amount of money to be sent. If a relative in the UK sends money to Uganda, the money is converted into the local currency, which is a lot of money.

WorldRemit has made it convenient for people to receive money. Instead of the hassle of brokers and agents, the money it is wired directly to their bank accounts. There is also an alternative to using mobile money such as MTN which has become very popular across East Africa.

Moreover, WorldRemit has partnered with Bank Of Africa where Ugandans in the diaspora can send money back home at low costs. Ugandans will now be able to collect money directly from the 35 branches of Bank Of Africa.

Sharon Kinyanjui, WorldRemit’s Head of East and Central Africa has announced plans to make Uganda a sender country. There are also foreigners living in Uganda. Also, the charges of money transfer on WorldRemit are relatively low. They charge ¢99 per $100 when you compare to traditional money transfer agents. World Bank estimates that for every $100 transferred a fee of 9.1% is charged than the recommended 7.4%. By the year 2030, it is estimated that 60% of money transfers will be digital. So, Uganda is on the right track with this digital innovation.