By Mulengera Reporters
Ugandans living abroad have been urged to move beyond sending money home for household consumption and instead channel more of their remittances into productive investments that can accelerate the country’s ambitious drive towards becoming a $500 billion economy.
The call was made during the Equity Bank Diaspora Xchange webinar held on Saturday under the theme, “From Remittance to Investment Capital: Diaspora Wealth for Uganda’s Economic Transformation.” Government officials and diaspora leaders said the country’s improving economic fundamentals present unprecedented opportunities for Ugandans abroad to invest in businesses, real estate, manufacturing, technology and other strategic sectors.
Speaking during the webinar, Joseph Enyimu, Commissioner for Economic Development Policy and Research at the Ministry of Finance, Planning and Economic Development, said Uganda had undergone a remarkable economic transformation over the past three decades and was now positioning itself as one of Africa’s most attractive investment destinations.
He said the Uganda many members of the diaspora left years ago had changed significantly, citing improvements in macroeconomic stability, private sector growth, infrastructure development and regional market integration.
Enyimu noted that Uganda had recently been rated as having Africa’s fastest-growing private sector, a development he said reflected growing investor confidence and expanding opportunities across the economy.
He also highlighted the country’s stable macroeconomic environment, saying Uganda boasts one of Africa’s most stable currencies, enabling investors to preserve the purchasing power of their investments over time.
“Uganda stands out in Sub-Saharan Africa in many unique ways that matter both to citizens and investors,” Enyimu said. “The economy has become increasingly resilient and competitive.”
According to the commissioner, Uganda’s Gross Domestic Product (GDP) is projected to reach approximately US$75 billion this year, while GDP per capita is expected to surpass US$1,500. He added that the country is on course to return to double-digit economic growth for the first time in nearly two decades.
He said the commencement of commercial oil production, expanding digital connectivity and improved access to smartphones and internet services were creating fresh investment opportunities, particularly in e-commerce and digital services.
Enyimu also pointed to improvements in healthcare and social services, noting that Uganda’s life expectancy has risen dramatically over the past generation to about 70 years, one of the fastest improvements globally.
He further said the economy offers one of the continent’s highest average returns on investment, estimated at about 14 percent, reflecting efforts to reduce investment risks and lower the cost of doing business.
The commissioner told participants that Uganda had met the international criteria for graduation from the category of Least Developed Countries, a milestone he said demonstrated the country’s structural transformation.
“The Uganda you may have left has totally changed,” he said. “You want to know that as you prepare your investment plans.”
Enyimu encouraged Ugandans abroad to think beyond Uganda’s domestic market, saying investments made in the country also provide access to larger regional markets through the East African Community and the Common Market for Eastern and Southern Africa (COMESA).
He said Uganda’s integration into regional trade arrangements gives investors access to a market worth nearly US$1 trillion, making the country an ideal production and export hub.
The government, he explained, is pursuing an ambitious long-term strategy to expand the economy to US$500 billion by 2040 through export-led industrialization.
The strategy prioritizes four major sectors: agro-industrialisation, tourism, mineral development—including oil and gas—and science, technology and innovation.
Enyimu said Uganda’s export base had diversified significantly from its historical dependence on coffee, which once generated nearly 70 percent of export earnings but now accounts for less than one-fifth of foreign exchange revenues.
Instead, government is investing in new value chains including edible oils, biofuels, industrial starch, grain processing, wood products, confectioneries and beverages.
In tourism, he said Uganda is diversifying from nature-based tourism into health tourism, culinary tourism, education tourism and Meetings, Incentives, Conferences and Exhibitions (MICE), while attracting internationally recognised hotel brands.
He also highlighted rapid growth in the extractive sector, supported by new mining legislation and the establishment of a national mining company to leverage private investment.
Uganda is increasingly exporting processed minerals including gold and refined metals while positioning itself to support electric mobility through the development of battery minerals such as lithium and graphite.
On technology, Enyimu said Uganda is building a knowledge economy through investments in biomedical industries, electronics, software development, cloud computing, automotive manufacturing and renewable energy technologies.
He noted that Uganda now manufactures mobile phones and exports them within Africa while local companies are also producing electrical equipment such as transformers that were previously imported.
The commissioner stressed that diaspora remittances should increasingly support these productive sectors instead of being used primarily for household consumption.
Government projections indicate that remittances, which currently account for about 2.8 percent of GDP, should rise to approximately 5 percent of GDP by 2040, translating into around US$25 billion annually in a US$500 billion economy.
“We are making the environment suitable for you to deliver more,” he told participants.
Enyimu said Uganda had also made significant progress in domestic savings, with the savings-to-GDP ratio rising from almost zero three decades ago to more than 20 percent today. Government aims to increase this further to 40 percent to finance long-term investments locally.
He cited collective investment schemes, pension funds and wealth creation programmes as evidence of growing domestic capital mobilisation.
Government has also invested more than US$1 billion through the Parish Development Model revolving fund to stimulate household incomes and expand markets for small and medium enterprises.
Addressing diaspora concerns about investing back home, Enyimu outlined several reforms in the land and real estate sector aimed at improving transparency and investor confidence.
He said government had introduced digital land search systems, corporate land management portals and centralized land valuation systems to simplify property transactions and reduce fraud.
He also highlighted ongoing investments worth about US$1.5 billion in urban infrastructure that are expected to transform Kampala and secondary cities over the coming years.
Additional reforms include the proposed Real Estate Bill and the establishment of a mortgage refinance company to expand access to affordable housing finance.
Enyimu urged Ugandans abroad to organise themselves into investment groups and registered companies so they can benefit from government investment incentives and licences.
“We think that as players from the diaspora, you need to shift from financing consumption towards investing in firms,” he said. “Continue supporting family and friends, but start thinking more about commercial investments.”
Meanwhile, Tim Mugerwa, Vice President and Director of the Uganda Nurses and Midwives Association in the United Kingdom (UNMA-UK), echoed the call for diaspora communities to embrace long-term investment.
Mugerwa said Ugandans abroad had traditionally been recognised for the billions of shillings they remit annually to support relatives, but the time had come to transform those remittances into sustainable investment capital.
“Our discussion challenges us to think beyond consumption and towards sustainable wealth creation and growth,” he said.
He described the association as Europe’s largest network of Ugandan healthcare professionals and said its members possess both the financial resources and professional expertise needed to contribute meaningfully to Uganda’s development.
Mugerwa praised Equity Bank for evolving from a provider of retail banking services into a strategic financial partner supporting diaspora investment ambitions.
He said the bank had assisted members with international money transfers, mortgages and financial advisory services while building confidence among Ugandans abroad to invest through formal financial institutions rather than informal arrangements.
According to Mugerwa, members are increasingly interested in treasury bills, government bonds, unit trusts, insurance products and wealth management services as part of long-term financial planning.
He observed that many diaspora members previously relied on relatives to manage investments back home, often resulting in financial losses, but institutional banking partnerships were helping reduce those risks.
Throughout the association’s partnership with Equity Bank, he said members had successfully transferred funds across borders with minimal challenges, provided the necessary documentation was in place.
Beyond financial investments, Mugerwa highlighted the association’s ongoing partnership with Equity Bank to refurbish a mental health rehabilitation unit for the Uganda Police.
He said the project seeks to address growing mental health challenges among security personnel, including trauma, post-traumatic stress disorder, substance abuse and other long-term psychiatric conditions.
“Equity Bank has really been our partner in creating social impact,” Mugerwa said. “They have been our trusted advisors and have supported us throughout this journey.”
Looking ahead, he said the association intends to expand into real estate development, explore innovative financing models and continue strengthening partnerships that support wealth creation for members while contributing to Uganda’s national development.
The webinar concluded with renewed calls for Ugandans living abroad to leverage their financial resources, skills and global experience to invest in sectors that will generate jobs, boost exports and contribute to Uganda’s long-term economic transformation. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
