A Tanzanian fintech business called NALA has increased its service offerings in the European market. With this expansion, the fintech will be capable of operating in 19 European nations and facilitating remittances to African nations.
The process of transferring money to African nations is time-consuming and difficult, despite the international remittance industry being oversaturated with companies, including traditional banking institutions and other fintech. Data from the World Bank show that, depending on the platform, sending money to African nations from European nations like Italy, France, and Germany typically costs between 3% and 7% and takes up to 2 days.
African nations’ GDP is significantly influenced by remittances. Remittances make up to 3% of the GDP in Kenya, 6%, and 6.7% of the GDP in Nigeria and Egypt, respectively. In spite of the global downturn, this demand has caused a rise in the total amount of remittances to Africa. The World Bank reports that in 2022, remittances to sub-Saharan Africa climbed by 5.2%.
The third-largest economy in the world and the home to more than a quarter of African migrants, according to Benjamin Fernandes, founder, and CEO of NALA is the reason for the expansion. Our goal at NALA is to provide financial empowerment to Africans everywhere.
He continued, “Remittance companies have typically relied on market expansion as a key growth lever, causing them to pursue a greater global reach rather than an added value to their product. This is how NALA differentiates itself from the competition. At NALA, our goal is to create the remittance business that Africans deserve.
NALA’s expansion might have a big impact by giving more ways for Europeans to send money to Africa because there are approximately 11 million African migrants living in Europe. This development comes after numerous others that NALA has made to its platform, including the recent integration of ApplePay and Google Pay to enable payments from the US and UK to Africa. Bluechip Technologies, a Nigerian software company that earlier this year ventured into Europe, set the precedent for NALA’s growth.