NALA Secures Uganda License to Provide Cross-Border Transfer Service

STARTUP VENTURE CAPITALSeptember 3, 2024 at 12:03 PM UTC

TLDR

Tanzanian fintech NALA secures IMTO license from Bank of Uganda for cross-border payments in Uganda.
NALA expands services to connect with mobile money platforms, facilitating payments for individuals and businesses.
Company reinforces financial inclusion objective with $40 million Series A funding boost.

Tanzanian fintech NALA has obtained an International Money Transfer Operator (IMTO) license from the Bank of Uganda, which enables it to offer cross-border payment services in the East African country.

NALA can now connect directly with mobile money services in Uganda, enabling payments into local mobile wallets for individuals and businesses, in the diaspora and at home.

NALA's COO, Nicolai Eddy, highlighted that this license aligns with the company's goal of promoting financial inclusion and economic growth in Uganda. The company recently raised $40 million in Series A funding to enhance its services.

Key Takeaways

NALA’s IMTO license positions the fintech to tap into Uganda’s growing remittance market, which totaled over $1.4 billion in 2023. By enabling direct connections with mobile money services, NALA aims to make remittances more accessible and affordable, enhancing financial inclusion. Uganda, the seventh-largest recipient of remittances in sub-Saharan Africa, relies heavily on these flows for economic stability. NALA's entry into the market is likely to increase competition, leading to better rates and services for consumers. The company’s focus on financial inclusion aligns with broader efforts to integrate underserved populations into the formal financial system, potentially boosting economic growth in Uganda and the region.

Startup

Remittances

NALA

IMTO

Cross-Border Transfer

Uganda

East Africa

Fintech