Africa-Press – Uganda. Researchers and economists are calling on the Ugandan government to explore diaspora bonds as a strategic tool for mobilizing large-scale capital, citing their potential to complement traditional remittance inflows.
Herbert Kafeero, Programs Manager at the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI), notes that while Diaspora Direct Investment (DDI) has been used in the past, diaspora bonds offer the unique advantage of attracting substantial, long-term capital for national development projects.
Data from 2024 shows that East African Community (EAC) countries received a total of USD 12 billion in personal remittances, equivalent to 6% of the region’s GDP. Uganda received USD 1.49 billion (2.8% of GDP), below the EAC average, compared to Somalia’s USD 1.73 billion, which contributed 13.6% of its GDP.
Diaspora bonds have historically succeeded in countries like Israel and India, where patriotic appeals combined with strong governance and transparency helped raise billions. In Africa, Ethiopia and Nigeria have experimented with similar schemes, with results often tied to investor trust and political stability.
Dr. Asuman Guloba, a Senior Researcher at the Economic Policy Research Center (EPRC), emphasized that the success of diaspora funds hinges on their use for productive investment rather than short-term consumption or politically motivated projects. “When they send money back home, let’s channel some to investment, not rely mostly on households,” he said.
Remittances have consistently demonstrated resilience and growth, rising from USD 902 million in 2015 to USD 1.4 billion in 2019. Despite a temporary dip to USD 1.1 billion during the COVID-19 pandemic in 2020, inflows rebounded strongly from 2021, averaging USD 1.4 billion annually. Experts argue that leveraging diaspora bonds could further strengthen Uganda’s capital base, boost exports, and foster sustainable economic development.
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