The Bank of Uganda has announced plans to introduce a Diaspora Bond as part of a broader strategy to channel remittances from Ugandans living abroad into long-term investments that support the country’s economic transformation.
Speaking to members of the Ugandan diaspora, the Deputy Governor of the Bank of Uganda, Prof. Augustus Nuwagaba, said the country must move beyond viewing remittances as a source of household consumption and instead harness them as a catalyst for wealth creation, infrastructure development and sustainable economic growth.
“I want to call on Ugandans in the diaspora to take greater ownership of our economic story by transforming remittances into strategic investments that support Uganda’s long-term development,” Prof. Nuwagaba said.
He revealed that the central bank is working on initiatives to expand investment opportunities for Ugandans abroad, with the proposed Diaspora Bond expected to offer secure investment options while financing national development projects.
“I am pleased to announce that the Bank of Uganda is working on initiatives to expand diaspora investment opportunities, including the development of a Diaspora Bond. This will provide Ugandans abroad with secure investment options while contributing to national development projects,” he said.
Secure investment channels
Prof. Nuwagaba underscored the need to establish safe, reliable and accessible investment channels that would enable diaspora communities to invest confidently in Uganda.
He said strengthening regulated financial systems would ensure diaspora funds are directed into productive sectors while safeguarding investors’ interests.
“I recognise Uganda’s progress in financial inclusion, driven by digital platforms and mobile money. At the same time, I emphasise the importance of ensuring that diaspora funds flow through secure and regulated financial systems,” he noted.
The Deputy Governor said the central bank remains committed to promoting financial stability, expanding digital payment innovations and creating policies that encourage greater diaspora participation in Uganda’s economy.
“As Bank of Uganda, we remain committed to supporting financial stability, digital payment innovation, investment facilitation, and policies that create a more enabling environment for diaspora participation in Uganda’s economic transformation,” he added.
Infrastructure and urban investment opportunities
Prof. Nuwagaba said diaspora investors have significant opportunities beyond traditional sectors, particularly in infrastructure financing where collective investments can support large-scale projects such as energy generation.
He argued that increased private participation in infrastructure could lower production costs and accelerate economic growth.
He also pointed to Uganda’s rapidly expanding urban centres as emerging investment destinations.
Cities including Jinja and Gulu, he said, are evolving into centres of excellence, presenting opportunities in housing, commercial real estate, infrastructure and other urban development projects.
According to Prof. Nuwagaba, these growing cities are expected to play a central role in Uganda’s long-term economic transformation.
Learning from global success stories
The Deputy Governor urged Uganda to draw lessons from countries such as the Philippines, which has successfully converted diaspora remittances into a major engine of economic growth through structured investment programmes.
He stressed that achieving similar success would require stronger data on Uganda’s diaspora, including information on demographics, professional skills, locations and investment preferences.
“Accurate information on diaspora demographics, skills, locations and investment interests is critical if we are to design effective financial solutions and investment opportunities,” he said.
He further challenged Ugandans abroad to build a culture of saving, investing and continuous skills development instead of focusing solely on short-term financial support for relatives back home.
“I encourage Ugandans in the diaspora to focus on building both personal and national capabilities, so that you are well positioned to take advantage of the emerging investment opportunities in Uganda,” he said.
“Sustainable success begins with developing capabilities through continuous learning, access to information, skills development and innovation.”
Using an African proverb, Prof. Nuwagaba called on Ugandans to define their own economic narrative.
“Until the lion learns how to tell its story, the story of the hunt will always glorify the hunter.”
He said the proverb reflects the need for Uganda to better communicate the contribution and untapped investment potential of its diaspora community, whose financial resources, skills and networks could become a key pillar of the country’s long-term development agenda.
