New money transfer service launched to support Ugandans in diaspora
Mr David Charles Nyende from BoU hands over the operating licence to NALA’s COO Nicolai Eddy as Ms Sophie Birungi from MOFA looks on. PHOTO/MICHAEL AGABA
What you need to know:
During the launch in Kampala on Thursday, Ms Sophie Birungi, a Foreign Service Officer from MOFA’s Diaspora Department, highlighted the difficulties diaspora members face when sending money home
The Ministry of Foreign Affairs (MOFA) has endorsed the launch of NALA, a cross-border money transfer service aimed at helping Ugandans in the diaspora send money home securely and affordably. NALA, operating in 21 countries including the UK and US, offers remittances via mobile money wallets and bank accounts with no fees.
During the launch in Kampala on Thursday, Ms Sophie Birungi, a Foreign Service Officer from MOFA’s Diaspora Department, highlighted the difficulties diaspora members face when sending money home.
"Many Ugandans abroad struggle with ensuring the safety of their funds. Often, money sent home ends up in the wrong hands, or their savings are misused. Additionally, some can't open bank accounts due to visa overstays, forcing them to store cash at home, where it can be confiscated by authorities," she said.
Ms Birungi emphasized that NALA fills a critical gap, offering a secure and cost-effective solution for money transfers.
Mr Nikolai Eddy, NALA's Chief Operating Officer, explained that the company’s focus on high transaction volumes with minimal foreign exchange margins allows them to keep operations running smoothly.
"For us, it's about volume. We make small profits on foreign exchange, which supports our business even when smaller transactions aren't highly profitable," he said.
He noted that Uganda's large diaspora and supportive regulatory environment make it a key market for expansion.
"Uganda is important because of its significant diaspora in the US, Europe, and the UK, where we are licensed to operate. We prioritize security and regulatory compliance to ensure that funds reach recipients safely and affordably," Eddy added.
NALA has received a Class A operating license from the Bank of Uganda, which permits cross-border remittances. Mr David Charles Nyende, a Principal Banking Officer at the Bank of Uganda, stated that NALA’s service aligns with Uganda’s financial inclusion goals by allowing people to receive money without visiting a physical location.
"This service is particularly beneficial for those with smartphones, removing the need to visit a booth for transactions," Mr Nyende said.
The launch follows NALA’s recent announcement of $40 million in funding to expand operations. MOFA plans to support the initiative by engaging with diaspora communities and promoting the service through Ugandan embassies.
