KAMPALA, UGANDA – Flex Money Group, a leading regional remittances provider, has secured Forex and International Money Remittance licenses in Uganda, marking a significant milestone in its regional expansion.
Operating under the InstaRemit brand, the company has opened its first customer engagement center in Kampala, with plans to establish five additional centers across the country within the next year.
Uganda, the seventh-largest remittance recipient in sub-Saharan Africa, presents a compelling opportunity for Flex Money Group to transform cross-border transactions. In 2023, remittance flows reached over $1.4 billion, accounting for nearly 3% of the country’s GDP.
“Uganda is a vital market in our Sub-Saharan Africa expansion plans,” said Riyaz Naghoor, CEO of Flex Money Group. “Our innovative omni-channel approach, combining physical branches with cutting-edge digital solutions, uniquely positions us to meet the diverse needs of this vibrant market.”
Flex Money Group’s entry into Uganda is expected to enhance the efficiency and security of remittances, benefiting both Ugandans living abroad and those receiving funds from the diaspora.
The company’s holistic approach integrates physical branches and digital platforms.
Industry analysts view Flex Money Group’s Ugandan foray as a significant development in the region’s remittance sector, with potential implications for market competition and customer choice.
However, challenges persist. The cost of sending money to Uganda remains high, averaging 12.65% of the amount sent, according to the World Bank’s Q3 2024 report.
This figure is above the SDG-recommended 3% and the average cost for sub-Saharan Africa, which stands at 7.90%.
Financial health has declined between 2018 and 2023, despite positive trends in financial inclusion.
The expansion is part of Flex Money Group’s broader strategy to deepen its footprint in key African markets. With Uganda hosting the largest population of refugees in Africa, the company’s services are poised to make a significant impact.