• UBA moves beyond remittances with integrated banking and investment services

• Remittance flows to Africa exceed $100 billion a year

• Platform aims to channel diaspora funds into long-term structured assets

United Bank for Africa (UBA) announced on February 16 the launch of a banking and investment platform dedicated to the African diaspora.

The initiative seeks to go beyond traditional money transfers by offering banking and payment services, investment products, securities services, asset management, insurance, pensions and real estate solutions. Through this platform, UBA aims to convert diaspora capital into structured, long-term investments.

According to Anant Rao, head of diaspora banking at UBA, the move marks a shift from a remittance-centered model toward an integrated financial ecosystem. He said Africa’s engagement with its diaspora has long focused mainly on remittances, and that the new platform represents a transition toward a broader system where Africans abroad can bank, make payments, invest, protect their families and build long-term wealth.

Major financial flows to Africa

The launch comes as remittance flows to Africa exceed $100 billion annually, Rao noted. In a report published in December 2024, the World Bank said remittance flows to developing countries were expected to reach $685 billion in 2024. Nigeria and Morocco were projected to rank among the top 15 global recipients, at 9th with $19.8 billion and 14th with $12 billion, respectively.

Until now, a large share of these funds has supported household consumption. Only a limited portion has been directed toward long-term savings, capital markets or productive investment. UBA intends to capture part of these flows and channel them into structured financial products.

Strategic stakes for the continent

UBA has a comparative advantage in launching the platform. The group operates in about 20 African countries and maintains a presence in major international financial centers, including London, Paris, New York and Dubai. This global footprint facilitates access to diaspora communities and enables cross-border financial flows across jurisdictions.

The investment platform was developed with several partner entities, including United Capital, Africa Prudential, Heirs Insurance Group and Avon Healthcare Limited.

By launching this initiative, UBA seeks to reposition the diaspora as a structured source of financing for the continent. Beyond the investment products themselves, the move carries broader strategic implications. African economies face a structural shortage of long-term financing for infrastructure, real estate, industry and capital markets. Diaspora resources represent a steady source of foreign exchange and a potential lever to help address these gaps.

The success of the platform will depend on several key factors. Trust will be central to maintaining strong ties with diaspora investors, along with product transparency, sound governance and regulatory stability. Transfer costs, which remain high on some African corridors, will also play a critical role. Finally, the ability to offer attractive returns while maintaining disciplined risk management will be essential to secure sustained investor participation.

Chamberline Moko