Nala Gets Remittance License to Operate in Uganda

Startup expansion is currently reigning in Africa, and Nala is not left behind. Nala, an American company, has received an International Money Transfer Operator (IMTO) license to operate in Uganda. 

Nala Licensed To Enhance Cross-Border Payment Services

This license, issued by the Bank of Uganda, will allow NALA to establish and enhance cross-border payment services. Consequently, it makes it easier and more secure for Ugandans to send and receive money outside the country. 

Founded in 2017 by Benjamin Fernandes, NALA facilitates money transfers from the UK, US, and EU to various African countries, including Tanzania, Kenya, Egypt, Ghana, Rwanda, Cameroon, Côte d’Ivoire, Senegal, Nigeria, South Africa, and now in Uganda.

With the new IMTO license, NALA can directly connect with mobile money services in Uganda, enabling seamless payments into local mobile wallets, and benefiting both individuals and businesses.

Benefit of Bank of Uganda Approval To The Citizens 

It also paves the way for NALA to expand its operations in Uganda, offering a broader range of services tailored to the needs of both the Ugandan diaspora and local consumers.

This integration is expected to be crucial for many Ugandans living abroad who send money home to support their families and communities.

Speaking during the official launch in Uganda, Nala Chief Operating Officer, Nicolai Eddy said the launch of the cross-border payments company in Uganda will enable Ugandans in the diaspora to remit cash back home free of charge.

He said, “We operate in 19 European countries, the UK, and the US, and with a big number of Ugandans in the diaspora, this is an opportunity for them to make use of our services which are free of charge. They can ably send money to their mobile money accounts and bank accounts with our services.” 

According to the company, this new license aligns with NALA’s commitment to promoting financial inclusion and supporting economic growth in Uganda and the wider region.

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Nala License To Facilitate Financial Inclusion

NALA’s COO, Nicolai Eddy, emphasized the importance of this achievement, noting that the company’s collaboration with the Bank of Uganda will make remittances more accessible and contribute to boosting the supply of foreign exchange, which is vital for the country’s economic growth.

David Charles Nyende, the principal banking officer for Bank of Uganda also noted that the new development will help in financial inclusion.

He said the company has been issued with a class A license that allows them to carry out cross-border transactions.

“The advantage of their business model is that it allows one to receive money from abroad wherever they are. This means the money comes to the receiver’s phone and eliminates the burden of going to the counter to receive it which helps in financial deepening.”

The entry of fintech companies like NALA and Flutterwave into Uganda underscores the growing interest in the country’s digital remittances market. The market is projected to reach $17.99 million in transaction value by the end of 2024. Moreover, it is expected to grow at an annual rate of 8.35% from 2024 to 2028, potentially reaching $24.79 million by 2028.

NALA’s entry into the Uganda market as a licensed IMTO operator is expected to increase competition and facilitate better rates and services for consumers.

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