Remittances play a pivotal role in socio-economic development of many countries globally, especially in low and middle-income countries. Ensuring accurate and timely data collection on these financial flows is crucial. Uganda, a country with a vibrant remittance ecosystem, has increasingly recognized the need for a more refined approach to capturing remittance data. The Bank of Uganda (BOU) is leading the charge toward improving remittance data collection.
During the 7th National Remittance Stakeholders Network (NRSN) meeting, held on 26 September in Kampala, the BOU’s Statistics Department presented its plans to revolutionize how remittance data is collected, analyzed, and used. This event showcased the Bank’s efforts to move beyond traditional data collection methods and adapt to the rapidly changing financial landscape.
Moving from aggregated to granular data
One of the major highlights of the NRSN meeting was the presentation by BOU’s Statistics Department, led by Milly Nalukwago Isingoma, the department’s director. In her remarks, Isingoma explained that BOU’s current methods include collecting returns with inherent qualitative limitations and conducting annual surveys on personal transfers. These approaches, while helpful, lack the precision needed to inform forward-thinking public policy.
“We aim to move from aggregated to granular data using technological advancements,” said Isingoma. “By doing so, we can better support policymakers, particularly in monetary policy, while enhancing the remittance and labour-related enabling environment.”
This transition to granular data means that instead of simply collecting total figures, the BOU can further break down the data by various factors such as value, volume, geographic region, demographic group, transfer method, cost, and even the intended purpose of remittances. This detailed data can be of immense value to policymakers and market players.
Collaboration with Remittance Service Providers
Remittance Service Providers (RSPs) are integral to the success of this new data collection strategy. Their cooperation and feedback are crucial for improving data collection and management.
At the NRSN meeting, the BOU facilitated the sessions with representatives from these RSPs to discuss the proposed changes. The sessions provided a collaborative space where the RSPs could voice their opinions, concerns, and suggestions, allowing for a two-way dialogue to shape the future of remittance data collection in Uganda.
As Isingoma noted, “We are approaching you at the beginning of the journey to consider your perspectives and establish a mutual engagement to achieve the most suitable way to collect remittance data.”
IFAD’s role in steering remittance data innovation
IFAD’s FFR has provided technical assistance to BOU, offering its expertise and resources to help drive this initiative forward. David Berno, Remittances and Inclusive Digital Finance Officer for IFAD’s FFR, took the stage during the NRSN’s final session to outline the role of the PRIME Africa programme in shaping remittance ecosystems. He highlighted the critical importance of collecting detailed and disaggregated data to inform both public policy and private sector strategies.
“Detailed, disaggregated data, broken down by value, volume, geographic region, demographic group, transfer method, cost, and intended purpose, is a goldmine of insights,” said Berno. “It informs public policy towards greater financial inclusion and supports private sector market strategies.”
Berno’s presentation also laid the groundwork for continued engagement with RSPs, setting the stage for the 2025 plan of work, which will focus on expanding the network’s impact on Uganda’s remittance ecosystem.
Future of remittance data collection
The collaboration and partnership between BOU, IFAD, and RSPs indicates the commitment to improving remittance data collection practices in Uganda. For the government, the enhanced data will allow for more informed decision-making in public policy, especially in monetary policy, financial inclusion, and the labour market. For the private sector, RSPs will gain access to valuable insights that can inform their market strategies and improve financial services for Ugandans both at home and abroad.
Conclusion
The Bank of Uganda’s drive to enhance remittance data collection marks a significant step towards modernizing Uganda’s financial ecosystem. This new approach promises to provide invaluable insights that will shape public policy, support market strategies, and, ultimately, boost the country’s economic growth.
