Nakibinge champions diaspora, calls for tax incentives on remittances

By Hajji Yunus Ntale

Prince Dr. Kassim Nakibinge Kakungulu, the titular head of the Muslim faith in Uganda, has praised the vital economic role of Ugandan citizens living abroad and challenged the government to offer them tax holidays to encourage further investment back home.

Nakibinge’s comments came during his address at the annual retreat for Ugandan Muslims living in the United Kingdom, held over the weekend at Kissinsi Mpata Island in Mukono district. The event, hosted by businessman Hajji Umar Nyanzi, gathers the diaspora community to discuss development initiatives and ways to tackle the various challenges they face.

The Prince’s call for incentives highlights the growing economic clout of remittances, which Finance Minister Matia Kasaija on Tuesday confirmed remain Uganda’s largest source of foreign exchange, totaling $1.4 billion in 2024. This figure underscores a contribution that now rivals sectors like oil and gas, which drove Foreign Direct Investment to $3.30 billion this year.

“Government should offer the same incentives to the diaspora investing back home, including tax holidays,” Nakibinge said, arguing that formal benefits would recognize their current efforts and spur greater investment.

Beyond economics, the Prince also issued a cultural challenge to the diaspora, urging parents to teach their children native languages and traditions to maintain a strong connection to their Ugandan heritage.

The community’s leader, Sheikh Kalantaini Amiir, commended Nakibinge for his consistent advocacy for Ugandans abroad.

Meanwhile, Sheikh Umar Ssekadde used the forum to encourage potential local investors to look beyond the overcrowded capital, Kampala, and seek opportunities in other regions to promote broader national development.

The retreat was held near the palace of the late Kabaka Daudi Chwa on the island.