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Africa: Post Offices Are Key to Scaling Up Remittances and Financial Inclusion in Uganda

19.06.2017

 | Source:  IFAD; All Africa

The International Fund for Agricultural Development (IFAD), Postbank of Uganda (PBU) and Posta Uganda signed a grant agreement today aimed at expanding the role of postal networks in the delivery of remittances and access to financial inclusion across the country.

The new project, "Scaling Up Remittances and Financial Inclusion in Uganda," will provide remittances services in poor rural communities as well as in refugee settlements, many of which are taking in those fleeing conflict and food insecurity in neighbouring South Sudan.

The IFAD grant agreement for Euro 465,000 was signed by Adolfo Brizzi, Director of IFAD's Policy and Technical Advisory Division, in the presence of Alex Kayaayo, Executive Director of Postbank Uganda. The signing took place following the Global Forum on Remittances, Investment and Development, held 15-16 June at UN headquarters in New York.

Under the agreement, Postbank Uganda will leverage Posta Uganda's broad network of rural post offices to expand access to financial services for the rural population. The post offices will be equipped with modern digital and mobile technologies for remittance delivery and financial services transactions, and postal staff will receive specialized training. By March 2019, the project aims to increase the number of remittance recipients it serves by 50,000. In addition, it expects to provide remittance delivery services to 20,000 refugees as well as training in financial literacy.

In a country where the cost of sending and receiving remittances is still very high (above 12 per cent), the new project aims to reduce transaction costs of sending money home to 3 per cent (the Sustainable Development Goals target) and eliminate all corridors (for example between the United States and Uganda) above 5 per cent. Read more on All Africa.

Source: All Africa