NALA Money, a Tanzanian fintech specialising in cross-border payments, is positioning Rwanda as the settlement hub for its East African remittance operations.
The move, following the acquisition of a Payment Service Provider (PSP) license from the National Bank of Rwanda, will allow NALA to streamline money transfers by processing all transactions bound for East Africa through Rwanda before disbursing funds to recipients across the region.
This expansion marks a shift in strategy for NALA, which facilitates money transfers from the UK, Canada, and the US to nine African countries. By securing its own PSP license, NALA aims to reduce costs, bypass intermediaries, and potentially extend its services to third-party providers and established transfer networks like Western Union.
This approach aligns with Rwanda’s vision to become a central hub for fintech innovation across Africa, as outlined in its 2022-2027 fintech roadmap.
NALA’s plan follows a similar move by Flutterwave, another fintech giant that recently made Rwanda a key part of its East African operations. With remittances forming a significant part of Rwanda’s GDP—3.6% in 2022—the country is well-positioned to attract more fintech investments aimed at streamlining and expanding cross-border financial services in the region.
