NALA, a leading provider of cross-border payments and B2B payment solutions, has officially launched its services in Uganda, marking a significant shift in how Ugandans living abroad send money back home. With a money remittance license granted by the Bank of Uganda, NALA now offers fast, secure, and low-cost direct remittances to Uganda, making it easier for the diaspora to support their families and communities.
This move is expected to greatly benefit Uganda’s diaspora, who have long dealt with high fees and slow processing times when sending money home. NALA’s platform allows users to send money directly to mobile money wallets and bank accounts in Uganda without incurring excessive charges.
Nikolai Eddy, NALA’s Chief Operating Officer, explained the company’s strategy, saying, “For us, money remittances are about volumes. We focus on large volumes and make a small markup on foreign exchange. While we may not profit from small transactions, larger amounts help sustain our operations.” He emphasized Uganda’s large diaspora population and regulatory support as key factors in NALA’s expansion into the market.
With a Class A license from the Bank of Uganda, NALA is now able to provide cross-border remittances, allowing Ugandans to receive money without the need to visit physical counters. David Charles Nyende, a representative from the Bank of Uganda, highlighted this as a significant step forward in financial accessibility.
Sophie Birungi, from the Diaspora Department in the Ministry of Foreign Affairs, addressed the challenges faced by Ugandans abroad, including high remittance fees and safety concerns. She noted that many diaspora members struggle to open bank accounts, often resorting to keeping cash at home, which poses risks. Birungi called for more innovative solutions, like those offered by NALA, to make it easier and safer for Ugandans abroad to manage their finances and send money home affordably.
Birungi also urged other banks to develop products that allow Ugandans abroad to open accounts in Uganda, even if they are currently living overseas. This would provide more secure and cost-effective options for the diaspora to support their families and invest in their home country.
