NALA Secures Money Remittance License in Uganda, Following Flutter wave's Market Expansion

The Bank of Uganda has awarded NALA, a prominent Tanzanian fintech, an International Money Transfer Operator (IMTO) license. This pivotal move marks NALA's official entry into the Ugandan market and positions it for significant growth. The new license will allow NALA to seamlessly integrate with local mobile money services, enhancing the ease of transferring funds directly into Ugandan mobile wallets.

Enhanced Cross-Border Payment Efficiency and Security

The recent licensing will greatly improve the efficiency and security of cross-border transactions for both individuals and businesses. Users can now enjoy the convenience of paying directly into local mobile wallets with greater assurance of transaction security. This advancement comes on the heels of NALA securing $40 million in Series A funding, aimed at accelerating its expansion, particularly through the development of Rafiki, its innovative B2B payment platform.

NALA’s Mission and Benefits for Diaspora

Nicolai Eddy , NALA's Chief Operations Officer (COO), expressed that the new license is a significant boon for the Ugandan diaspora. With NALA’s services, users can receive money instantly and in full, without any deductions—a feature particularly beneficial for those needing immediate funds. Eddy highlighted the company's focus on high-volume transactions, stating that while small transactions may not be as profitable, large transfers enable NALA to sustain and grow its operations.

NALA’s Growth and Market Presence

Founded in 2017 by Benjamin Fernandes , NALA has established itself as a key player in facilitating money transfers from the UK, US, and EU to various African countries. Its services span across Tanzania, Kenya, Egypt, Uganda, Ghana, Rwanda, Cameroon, C?te d'Ivoire, Senegal, Nigeria, and South Africa. Eddy underscored the importance of remittances in supporting fundamental needs such as education, healthcare, and household expenses, noting that while the remittance process has improved, further enhancements are necessary to fully support individuals' needs.

Collaboration with Bank of Uganda and Economic Impact

NALA's collaboration with the Bank of Uganda has been instrumental in ensuring compliance with all regulatory requirements for accessible remittances. Eddy also pointed out that the new license is expected to bolster Uganda's foreign exchange reserves, contributing to the country’s economic growth.

Flutterwave’s Entry and Market Projections

On August 28, 2024, Flutterwave also received a Payment Systems Operator (PSO) license from the Bank of Uganda, further highlighting the growing interest in Uganda’s digital remittance market. This sector is projected to achieve a transaction value of $17.99 million in 2024 and is expected to grow at an annual rate of 8.35% from 2024 to 2028, potentially reaching $24.79 million by 2028.

Conclusion

The recent licensing achievements for both NALA and Flutterwave underscore the dynamic expansion of fintech services in Uganda. As these companies enhance their offerings and integrate more deeply into the local financial ecosystem, they are set to play a crucial role in shaping the future of digital remittances in the region.

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