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Kampala, Uganda | THE INDEPENDENT | Ahead of the International Day of Family Remittances on Sunday, the UN’s International Fund for Agriculture Development (IFAD) has launched a new program to ensure easier transmission of money from other countries into Uganda.
In a partnership with FlexiPay, a digital payment platform of Stanbic Bank, and regional remittances operator, Upesi Money Transfer, aims to enable customers to send and receive money from abroad with ease.
In its recent reports, the World Bank indicates that Uganda registers about 1.43 billion dollars (5.32 trillion Ugandan Shillings) annually from the estimated 2 million Ugandans working abroad.
According to David Berno, Remittances and Inclusive Digital Finance Officer at IFAD, remittances play a crucial role in reducing poverty and enhancing food security in developing countries.
He said that they joined the campaign to facilitate remittances because money remittances enable families to meet their basic needs, such as food, shelter, and education, and can also contribute to local economic growth through increased consumption and investment.
“Therefore by supporting money remittances, IFAD aims to promote financial inclusion, empower smallholder farmers and rural entrepreneurs, and ultimately contribute to sustainable development and poverty reduction,” said Berno.
Josephine Nakato Kasacca, Lead Customer Experience and Operations for FlexiPay said the new partnership will ensure a quick , secure, convenient and affordable completion of borderless financial transactions, starting with more than 20 countries immediately. By the end of the year, the number is expected to have increased to 70.
“In line with our purpose: “Uganda is our home, we drive her growth,” we believe that by helping as many people as possible meet their financial needs with innovative services, it goes a long way in driving economic growth,” she said. Kasacca said termed FlexiPay the ideal platform for both sending and receiving payments, emphasising affordability, and “dozens of unmatched benefits one cannot find on other similar platforms.”
Some of the countries Ugandans can receive money from include; Kenya, United Arab Emirates, United Kingdom, Qatar, Oman, United States, South Africa, France, Canada, Israel, South Korea, India, Germany, Ireland, Netherlands, Kuwait, Bahrain, Australia and Poland.
FlexiPay uses mobile applications and systems based on advanced encryption and other security measures to protect the sensitive financial information and transactions of all users, making it more secure.
Julius Okwana, the Upesi Uganda Country Manager said their main objective providing innovative solutions that simplify financial transactions across their regional and global network, without even visiting a bank. “With the increasing demand for cross-border transactions in Uganda, this partnership is expected to drive financial inclusion and promote economic growth in the region,” says Okwana.
On Friday, the G20’s Global Partnership for Financial Inclusion (GPFI) unveiled a new report that provides evidence of the transformative impact of digital remittances, as a driver of financial inclusion and poverty reduction worldwide.
IFAD notes that despite persistent gender gaps, the hard-earned money sent back home by migrant workers remains a vital lifeline for over 800 million people, particularly for women and vulnerable populations.
The report “Promoting Financial Inclusion through Digitalization of Remittances”, authored by IFAD with contributions from the World Bank, showcases significant strides in digitalizing remittance distribution channels.
“The digitalization of remittances is spearheading change, especially in rural and underserved areas. It is connecting millions of unbanked people to basic financial services that make a real difference in improving their lives,” said Pedro de Vasconcelos, Manager of IFAD’s Financing Facility for Remittances.
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