Kampala, Uganda – Diamond Trust Bank (DTB) Uganda has announced a strategic shift towards the rapidly expanding remittance corridors between Uganda and the United Arab Emirates (UAE) and Asia, as inflows from traditional sources such as Europe and North America begin to plateau.
For years, Uganda’s remittance landscape was dominated by diaspora communities in Europe and the U.S. However, DTB CEO Godfrey Ssebaana says that trend is shifting, with the UAE–Uganda and Asia–Uganda routes now leading in transaction volumes. The change is driven by a growing number of Ugandans seeking employment in the Gulf and parts of Asia.
“Unfortunately, many Ugandans working in these new markets lack financial planning tools and risk management support, putting their hard-earned money, and their families’ futures at risk,” Ssebaana said during the Annual Bankers’ Conference at the Kampala Serena Hotel.
He said in response, DTB is stepping up its efforts to provide secure, transparent, and user-friendly remittance solutions. Through a mix of bank account integrations and mobile money platforms, the bank ensures funds are reliably delivered and remain under the sender’s control.
Ssebaana said DTB has also strengthened partnerships with global remittance leaders such as Western Union, MoneyGram, and TerraPay, while investing heavily in digital technology to streamline the remittance experience.
With Uganda receiving over $1 billion annually in remittances, Ssebaana stressed that financial institutions have a responsibility to turn this inflow into sustainable impact. He said DTB processes nearly 800,000 remittance transactions each year, giving it a clear view of diaspora behavior and evolving needs.
“Remittances are no longer just for consumption. Diaspora communities want safe, high-value investment opportunities back home, and we are responding with tailored solutions,” he said.
Among these innovations is simplified access to government securities, including Treasury bills and bonds, previously seen as complex or inaccessible. He said these offer diaspora investors stable returns in Uganda’s relatively stable currency and low-inflation environment.
Ssebaana said DTB is also using remittance data to develop alternative credit scoring models, enabling diaspora clients to qualify for business and mortgage loans without traditional collateral.
Still, he acknowledged ongoing challenges. “Many in the diaspora want to invest but lack trustworthy guidance, or have been burned by unregulated real estate deals and fraudulent schemes,” he said.
To address this, the bank is investing in financial literacy and diaspora engagement, including virtual financial clinics and webinars focused on high-volume corridors like the UAE and Asia.
However, Ssebaana emphasized that banks cannot act alone. “Digital trust and cybersecurity are non-negotiable. We call on government to strengthen cybercrime prevention and regulatory oversight to create a safer investment climate,” he noted.
Moses Muguwa, Commissioner at the Ministry of Finance, Planning and Economic Development, echoed the need for coordinated action. He said the government is working to strengthen Uganda’s remittance ecosystem through commercial diplomacy, global partnerships, and forward-looking regulation.
“We are engaging destination countries and global institutions like the OECD, UN, and World Bank to ensure a seamless, secure cross-border remittance environment,” Muguwa said.
He highlighted stablecoins and blockchain-based assets as promising tools that, if well-regulated, could reduce remittance costs from 10–20% to as little as one cent per dollar. Muguwa also proposed the use of regulatory sandboxes to safely pilot financial innovations and floated the idea of a Diaspora Investment Trust to offer migrant workers transparent investment channels.
On the operational front, Haji Masoud Obeid, Chairperson of the Uganda Forex and Remittance Association (UFRA), urged support for money transfer operators and forex bureaus, calling them “critical intermediaries” in connecting families to diaspora earnings.
“Forex bureaus are on the frontlines, but we’re under immense pressure,” Obeid said. He cited liquidity challenges, fraud risks, and rising compliance costs, including anti-money laundering audits costing up to UGX 50 million, an amount many small operators can’t afford.
Obeid also pointed to technology gaps and limited access to national ID systems, which complicate Know Your Customer (KYC) processes, especially for migrant workers with inconsistent documentation.
He called on the government to grant forex bureaus access to the NIRA database to enhance identity verification and combat fraud. He also urged for a joint public education campaign to improve financial literacy among remittance recipients.
