Posta Uganda has launched a low-cost financial solution for international money transfers into and out of Uganda. While addressing during the launch of ‘PostalPay’ at Posta Uganda headquarters the Managing Director, James Arinaitwe, stated that the programme will allow Ugandans to receive money from persons residing outside the nation at lower rates.
“Financial institutions currently charge 6% to withdraw money, but with PostalPay, Posta Uganda will now charge Ugandans just 3% for the same services,” said Arinatwe.
He further added that the purpose of the project is mainly to make that facility more available because the Mechanisms being used now require moving to urban centres to receive the money from moneygrams and international remittances.
“So we thought, can’t we make it easier for my uncle from deep in the hills in Kashai to receive money quickly without having to travel long distances?” said Arinatwe.
According to Sander Glas, programme officer at the International Fund for Agriculture Development (IFAD), Uganda has nearly one million people sending money from the Diaspora, which is more than one billion annually.
“Uganda is also home to 1.7 Million immigrants, of whom 1.4 million are refugees, so with Posta Uganda expanding its large physical footprints across the country, it will help improve remittances, especially in rural areas,” said Glas.
According to Julianne Mweheire, head of industry and content development at the Uganda Communications Commission (UCC), diaspora communities that send these monies assist to achieve a number of Sustainable Development Goals (SDGs).
“Reduction in poverty and hunger, improvement in better health care, quality education, gender equality, and water sanitation are among numerous other goals,” Mweheire said.
According to Arinatwe, the new product, will help Ugandans save time and money.
