TANZANIA – Cellulant, a Pan-African payments company, has teamed up with NALA, a Tanzania based fintech company, to power remittance payments from the United Kingdom and United States into Kenya, Uganda, Rwanda, Tanzania and Ghana.
Besides Official Direct Assistance (ODA), remittances make up the second-largest source of external resources for Sub-Saharan Africa. In 2019, approximately US$48 billion was remitted in Africa, with Nigeria receiving roughly 50% of this amount, followed by Ghana and Kenya.
Remittance inflows into Sub-Saharan picked up again and grew roughly by 6% in 2021.
Transaction fees absorb a large percentage of the billions sent to Africa every year. The cost of sending money into Africa is the highest across all regions. Tanzania and Kenya remain the highest with charges at 17% and 21% respectively for every US$200 sent.
With increased intra-African trade and between Africa and the rest of the world, the transaction cost is one of the barriers to success in facilitating cross-border payments.
“Today, Sub-Saharan Africa is the most expensive region to transfer money into. In Tanzania and across the African continent, there is a huge opportunity to harness technology to reduce payment fees and build next-generation payment and banking products,” Nicolai Eddy, Chief Operations Officer, NALA said.
“At NALA, we’ve built a completely digital platform for individuals and businesses based in the UK and US to send money to their friends, family, and employees in Africa.
Cellulant provides a single API payments platform, Tingg, that enables global, regional and local businesses to collect payments online and offline while allowing anyone to pay from their mobile money, local and international cards or directly from their bank.
The platform powers payments for 220 million consumers on a single inclusive network, allowing interoperability across Africa.
“Cellulant solves a huge challenge for businesses coming into Africa since they have to deal with 54-55 different payment providers and multiple currencies, with at least one for each country,” David Waithaka, Chief Revenue Officer, Cellulant said.
“With our presence in 35 countries, we are able to cover all these needs through a Single platform, Single API, Single contract, One web tool and a Single point of managing all operations.
NALA is currently active in Tanzania, Uganda, Kenya, Rwanda, and Ghana and is preparing to join the Nigerian and Ethiopian markets. The company is looking forward to expanding its services across Africa, the United States, and Canada.