By Mulengera Reporters
On Saturday evening, Deputy Governor Prof Augustus Nuwagaba led other Bank of Uganda officials to participate in a Webinar discussion which focused on the role commercial banks and other financial institutions can play to facilitate and enable millions of Ugandans in the Diaspora to become more involved in the socioeconomic transformation of their country.
Prof Nuwagaba was a key note speaker and remained part of the discussion long enough to respond to several questions besides highlighting why the Diaspora Ugandan community is very important in Uganda’s economic development. He illustrated why Ugandans in the Diaspora have a duty to actively and deliberately participate in the socio-economic development and transformation of their rather than leaving it to the government.
Attended by hundreds of Diaspora Ugandans, the Webinar was organized by Equity Bank Uganda’s Diaspora services Unit. Equity Bank Uganda MD Mr. Gift Shoko addressed the Webinar too as did his counterpart heading Equity Bank operations in DRC.
Introducing himself as a former nkuba kyeyo (which was his side gig as he did graduate studies at London School of Economics in the UK), Prof Nuwagaba noted that the between $1.4bn and $1.7bn they contribute annually makes the Ugandan Diaspora community members to be one that everyone in government has to respect. He said that the Diaspora contribution is as important as the forex that Uganda gets through direct FDIs, tourism or even coffee and gold exports when it comes to contributing to the availability of the badly-needed foreign exchange to the GoU.
Nuwagaba added that there is need for all the Diaspora remittances to come through the formal channels like banks and other financial institutions as opposed to being sent to relatives who in most cases act dubiously and misappropriate the money rather than expending it on those investment projects for which it’s sent in the first place. He reminisced that in his case, he feared to be fleeced by relatives and returned with his money after completing his graduate studies at LSE.
He explained that banks are a better option which is why more and more Diaspora Ugandans should embrace Diaspora-oriented products available through the various banking agents that have been established in the different countries and cities where Diaspora Ugandans operate from. The Equity Bank team enumerated the relevant products available and the banking agent locations from where more information can be obtained in the Diaspora.
Equity Bank’s Clare Tumwesigye, who moderated the Webinar, kept reading out the email address through which all queries can be channeled to the Bank’s Diaspora Services Unit (namely Ugandans. Abroad@equitybank.co.ug). Damali Balungi’s phone number (+256754539998) was also issued for the Diaspora members who may wish to channel their questions or feedback via phone-calling or WhatsApp means. The toll free line 0800232700 & 0312327000 can also be used for feedback purposes by Diaspora members who might become curious about anything.
Prof Nuwagaba, who promised to ensure that BoU supports all Equity Bank’s efforts aimed at leveraging the Diaspora potential to deepen financial inclusion and increase inflow of the always very scarce foreign exchange, was also told about how limited access to the NIRA-issued National IDs continues to constrain many Diaspora Ugandans’ bid to open accounts with Ugandan commercial banks. He promised to ensure that this is immediately harmonized in close collaboration with NIRA.
Prof Nuwagaba was also prompted to speak about the high costs involved in transferring Diaspora-based Ugandans’ hard-earned remittances back home to Uganda. Prof Nuwagaba, who made reference to several African countries which have excelled at leveraging Diaspora remittances, admitted that the cost Uganda imposes on every $100 remitted is unacceptably high and vowed to ensure that this is urgently looked into and deescalated because its prohibiting many Diaspora remittances at a time actors like Equity Bank are working hard to mobilise the Ugandan Diaspora members to come to the formal economy space, which is consistent with the government’s efforts manifested through interventions like the PDM.
He made it clear that the Diaspora can be leveraged to help improve Uganda’s balance of trade position which currently has up to $6.1bn deficit. Uganda currently earns $6bn from its exports yet it spends up to $12.1bn on importation of things it needs which can’t be internally produced.
He said that growing the Diaspora remittances by increasing formalisation of such remittances, that unfavorable BoT situation can be mitigated. The Professor implored the Diaspora Ugandans to realise and accept that Uganda is their only beautiful country in whose socio-economic transformation they are duty-bound to participate in as opposed to leaving everything to the government.
He saluted Equity Bank for it’s innovative solutions’ approach which saw them lead the way in popularising models like agent banking which many people were originally skeptical about yet it now has ended up significantly deepening financial inclusion.
He also took note of Equity Bank’s Diaspora-related efforts including the agent banking locations and presence they have established in places like the UK where actors like Daniel Lutaaya are moving mountains; Middle East, Dubai, South Africa, Saudi Arabia and the US.
Nuwagaba encouraged the Diaspora members to trust and deal with Equity Bank even more because every product they offer out there has carefully been scrutinized and authorised by them at the Central Bank. This is proof that all the safety-related concerns any customer might have, have been considered and taken adequate care of. The Deputy Governor also commended Equity Bank for prioritizing digital solutions and going ahead to significantly invest in electronic platforms, all of which create additional convenience for Diaspora Ugandans desirous to affect their remittances.
Prof Nuwagaba also appreciated Equity Bank top management for investing into sending of powerful delegations to travel to countries where large numbers of Diaspora Ugandans live and work from. The MD had just enumerated UK, South Africa, US and Saudi Arabia as some of the countries to which Equity Bank teams had previously travelled to sensitize and educate Ugandans about the need to formalise their Diaspora remittances by sending money through formal financial institutions channels as opposed to entrusting the same to relatives who in most cases end up misappropriating the money.
In most cases, such Diaspora Ugandans send their money to construct houses and apartments to relatives or friends who end up chewing it and not doing the work. The Equity Bank teams, in response to Webinar participants’ questions, used the Saturday evening zoom interaction to explain that much as the Ugandan laws don’t allow them to be directly involved in land conveyancing and real estate or property development business, they have partners to whom Diaspora Ugandans wanting such services can be referred and have the needful done in close collaboration with the Bank still.
Such certified partners were enumerated to include the Ham Towers Makerere-based Bakaima Properties, Comfort Homes, Pearl Marina and HK Property just to mention a few. These closely work with Equity Bank and have land for safe purchase and ready condominium properties in case anyone desires to take out such. Equity Bank can even finance acquisition of such properties under flexible mortgage-like terms, it was explained.
Prof Nuwagaba also used the Webinar to tell Diaspora Ugandans about the Diaspora Bond and other arrangements through which the GoU intends to leverage its very productive Diaspora to raise funding to finance the establishment of large infrastructure projects like several African governments and countries are already doing to fund things like the construction of gigantic electricity generation dams.
As Prof Nuwagaba specifically thanked Ugandans working and based in UAE, South Arabia and those based in South Sudan for annually bringing in remittances worth $155m, the Equity Bank MD Gift Shoko enumerated the countries to which they will soon be dispatching high level delegations to engage the Diaspora.
These include the US to whose Boston and Washington top officials will be travelling to engage Ugandans at the upcoming UNAA Convention. Others include UK to leverage the upcoming UK-Africa Summit in London and Dubai among several other countries which currently host significant numbers of the Ugandan Diaspora. Prof Nuwagaba, who looked forward to more such Webinars with Diaspora Ugandans, asserted that the Central Bank is very supportive of all these efforts by Equity Bank and urged other commercial banks to emulate this and follow suit. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
