NALA Eyes Rwanda as a Regional Settlement Hub

Tanzanian fintech firm, NALA Money, has set its sights on Rwanda as a strategic hub for its East African remittance operations.

By obtaining a payment service provider (PSP) license from the National Bank of Rwanda, NALA wants to streamline its cross-border payment processes and offer more competitive rates to its customers.

“It means we can aggregate the payment channels ourselves,” said Nicolai Eddy, NALA’s Chief Operating Officer. “We want to go deeper and a PSP license also means that we can process remittance payments for third-party providers and integrate with local banks and telcos.”

Why Rwanda?

Rwanda’s aspirations to lead Africa’s fintech market align perfectly with NALA’s goals. The country’s ICT Ministry’s 2022–2027 fintech strategy aims to position Rwanda as a gateway to Africa’s burgeoning financial ecosystem.

This is not the first time Rwanda has caught the attention of fintech innovators. Last year, Flutterwave announced its intention to establish a similar settlement hub in the country after acquiring its PSP licence. Other leading fintech players such as ChipperCash, Paystack and Chumz have already established operations or are planning to establish operations in the country, bestowing a vote of confidence in Rwanda’s infrastructure.

The country’s potential as a financial hub was spotlighted by data from the World Bank, which recorded remittances contributing 3.6% ($474 million) to Rwanda’s GDP in 2022. Across the broader region, countries such as Kenya, Uganda, and Tanzania collectively received $6.36 billion in remittances last year.

What’s Next for NALA?

Taking these figures into consideration, NALA’s mission is to provide a more cost-effective solution for sending money to the region from countries like the UK, Canada, and the US.