Business 12 May 2026 Daily Monitor (Uganda)
Telecoms Dominate Uganda's Remittance Market, Mobile Money Takes Lead
Mobile money has become the preferred method for receiving diaspora remittances in Uganda, handling 60.83% of transfers, significantly surpassing traditional cash pickup services. This shift reflects the extensive reach of mobile money networks into rural areas and the integration of international remittance providers with telecom wallets, transforming how money reaches recipients across the country. Source: https://www.monitor.co.ug/uganda/business/markets/how-telecoms-captured-the-remittance-receiving-market--5456200
Uganda’s remittance landscape has undergone a dramatic transformation, with mobile money now the dominant channel for receiving funds from abroad. In 2025, the country received a record $2.5 billion in diaspora remittances, with a significant 73.32 percent arriving digitally, primarily through mobile money platforms, compared to just 26.68 percent collected as cash.
Historically, traditional giants like Western Union and MoneyGram, along with bank wire transfers and forex bureaus, controlled the remittance market. Sending money meant physical queues, high fees, and recipients facing logistical challenges to collect cash from specific outlets.
However, the widespread adoption of mobile money and the expansion of agent networks by telecom operators like MTN and Airtel into even remote villages have changed the game. International remittance providers have integrated with these mobile wallets, enabling instant transfers directly to recipients’ phones.
This digital shift means that money can now be sent directly to a mother’s mobile wallet in a rural village or used instantly for school fees or medical emergencies, bypassing traditional banking infrastructure entirely. Consequently, mobile money accounts for 60.83% of remittance receipts, with cash pickup at 26.68% and bank accounts at 12.45%.
This evolution has also reshaped the roles of traditional remittance companies, many of which now operate behind the scenes, partnering with telecoms and banks for digital disbursement. Payment service providers now control 56.66% of remittance reception, followed by banks at 27.69% and forex bureaus at 12.56%.
The primary sources of these remittances are the US ($702 million) and Saudi Arabia ($380 million), reflecting substantial communities of skilled professionals and labor migrants abroad. Despite the large sums, the majority of transactions remain small-value, frequent payments for family support, indicating a grassroots, survival-oriented use of these funds.
The convenience and accessibility of mobile money ensure that even unbanked populations can receive vital financial support, highlighting its crucial role in Uganda’s economy. This report is based on the 2025 Bank of Uganda Cross-Border Remittance Report.