Africa Industry

Bank of Africa, World Remit sign partnership agreement on digital money transfers

Bank of Africa and renown international digital money transfer company WorldRemit have signed a partnership that will allow Ugandans in the diaspora to send money to their relatives and friends in Uganda.

Bank of Africa (U) Ltd, that boosts of 35 branches will cash in on all money transfers done by Ugandans in the diaspora through WorldRemit. WorldRemit becomes the third known digital money transfer company in Uganda after Western Union and Moneygram.

According to Ronald Kamulegeya, the General Manager Business Development at Bank of Africa Uganda Ltd, Ugandan Diaspora in over 50 countries can now send money instantly for easy collection as cash at any of the Bank of Africa’s 35 branches across the country.

“Our move to partner with WorlRemit plays directly into our digital strategy to be the preferred payments solutions provider in our chosen market segments through unrivaled customer experience by use of digital solutions,” said Kamulegeya during a press conference the two organizations jointly addressed.

He said, at the beginning of the year, they purposed to efficiently integrate with top money transfer services providers with corridors relevant to Uganda.

“We have been able to do this successfully with WorldRemit and this is only the beginning, we plan to innovate and do more with this partnership,” added Kamulegeya.

Sharon Kinyanjui, the Head of East and Central Africa for WorldRemit, said Africa now accounts for over half of WorldRemit’s transactions globally and their ongoing collaboration with Bank of Africa will support their plan to serve 10 million customers connected to emerging markets by 2020.

“We are proud to be partnering with Bank of Africa to give the 400,000 strong Ugandan diasporas a wider choice of cash pickup locations across the country,” she added.

Uganda is one of the top five remittance receiving countries in Africa for WorldRemit. The World Bank estimates that Uganda received over $1.4 billion in remittances in 2017, accounting for 5% of its GDP.

Arthur Isiko, the Managing Director Bank of Africa Uganda Ltd, said they are open to new technologies that can help solve consumer problems quickly, conveniently and innovatively.

He said, over the years, remittance services have remained largely untouched by the financial revolution.

“Remittances for low and middle-income countries have increased to $485billion from $466billion showing an increase of 9% over the past years. They have exceeded official aid to low and middle-income countries, acting as a buffer to these countries from external shocks,” said Isiko.