The Bank of Uganda has issued an International Money Transfer Operator (IMTO) license to Tanzanian fintech NALA, facilitating its entry into the Ugandan market.
NALA has become a key player in facilitating money transfers from the UK, US, and EU to various African countries, including Tanzania, Kenya, Egypt, Uganda, Ghana, Rwanda, Cameroon, Côte d’Ivoire, Senegal, Nigeria, and South Africa.
This license enables NALA to connect directly with local mobile money services, improving the efficiency and security of cross-border payments for users in Uganda. This development follows NALA’s recent $40 million Series A funding, which will support the growth of its new B2B payment platform, Rafiki. NALA’s COO, Nicolai Eddy, emphasized the license’s significance for the Ugandan diaspora, allowing them to utilize NALA’s services without incurring costs.
Eddy noted that a significant portion of remittances is directed towards essential needs such as education, healthcare, and household expenses. While the remittance process has improved over the years, Eddy acknowledged that there is still work to be done to ensure it fully supports the needs of individuals relying on these funds.
He also praised the Bank of Uganda for its cooperation, stating that NALA worked closely with the central bank to meet all necessary requirements to make remittances more accessible. The new license is expected to bolster the supply of foreign exchange in Uganda, which is crucial for the country’s economic growth.
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