Sending money must be cheap - Finance minister
Finance state minister in charge of General Duties Gabriel Ajedra
What you need to know:
- Mr Alessandro Marini, the IFAD country director, said the project creation had taken over a year and it was time to implement banking services in post offices as a means of extending banking services to the rural poor.
Finance state minister in charge of General Duties Gabriel Ajedra has said sending money to any part of the country must be a cheap process that does not attract unnecessary expenses.
Speaking at the launch of a joint project in Masindi District funded by Post Bank Uganda and Posta Uganda, Mr Ajedra said government will support any initiative that seeks to make the process of transferring money cheap and affordable.
Mr Ajedra was reacting to concerns by Mr Steven Mukweli, the Post Bank managing director, who had earlier asked government to look into different charges that are instituted on money transfers. For instance, according to Mr Mukweli, a person sending $2,000 is charged $130, which he said is a relatively high charge.
However, Mr Ajedra said, government would in the 2019/20 review some of the taxes and interest rates on savings of remittances with a view of bringing down the cost.
During the meeting Post bank Uganda and Posta Uganda launched a $465,000 (Shs1.7b) initiative that seeks to lower the cost of receiving remittances and boosting financial inclusion in the country.
The initiative, codenamed “Scaling up remittances and financial inclusion in Uganda through the post offices, targeting communities and refugee migrants in rural areas,” was launched in Masindi District and is expected to be implemented across the country.
Remittance inflow, according to Mr Ajedra, is a vital aspect of the financial sector, which contributes immensely to the growth of Uganda’s economy. Remittances come after tourism in terms of foreign exchange contribution.
