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Tanzania’s NALA Eyes Rwanda as East Africa’s Regional Settlement Hub

Tanzanian fintech company NALA is establishing Rwanda as a central settlement hub for remittance transactions across East Africa.

 After receiving a Payment Service Provider (PSP) licence from the National Bank of Rwanda, the company now can process payments directly and integrate with local banks and mobile money networks, bypassing third-party intermediaries.

ALSO READ: Paul Russo: Shaping the Future of Banking Leadership in East Africa

This development is expected to significantly reduce the cost and processing time of cross-border remittances involving Tanzania, Kenya, Uganda, and Rwanda, as all transactions destined for the region will be settled through Rwanda before reaching end-users.

Strategic Alignment with Rwanda’s Fintech Vision

The move aligns with Rwanda’s National Fintech Policy (2022–2027), which positions the country as a preferred destination for digital financial services in Africa. 

Rwanda has been attracting key fintech players such as ChipperCash, Flutterwave, and Paystack, and NALA’s regional ambitions further reinforce the country’s emerging status as a fintech gateway.

Since entering the Rwandan market in 2021, NALA has processed over 1 billion Rwandan francs in remittance transactions, supporting thousands of diaspora-linked beneficiaries.

ALSO READ: Paula Ingabire: The Digital Architect of a Smarter RWANDA

Implications for Regional Payments

With annual remittance inflows to East Africa estimated at $6.3 billion, NALA’s move is set to improve payment reliability and affordability across the region. 

The centralized settlement hub in Kigali will enable the company to offer value-added services, including utility bill payments, tuition fee transfers, and collections, with the potential to support other digital finance providers as well.

NALA plans to invest approximately $1.5 million over five years into Rwanda’s financial technology infrastructure, contributing to broader efforts to enhance the country’s innovation ecosystem.

Rwanda’s Growing Role

Rwanda’s role as a digital finance hub is underpinned by its supportive regulatory environment, ongoing infrastructure developments such as Kigali Innovation City, and improving regional connectivity. 

These factors continue to attract investment and position the country as a strategic launchpad for fintech operations across East Africa.

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