Equity Bank Tanzania’s Managing Director, Robert Kiboti and Nala’s CEO, Benjamin Fernandes said a sizable number of Tanzanians in the Diaspora, especially those in UK send back home remittances that play an increasingly important role in the country’s economy.
According to World Bank figures, in 2020, Tanzania in the Diaspora remitted U$430 million being an increase of U$25 million compared to 2019. The sum represented 0.8 percent of the country’s gross domestic product.
“Remittances into Tanzania from the Diaspora have been growing steadily, currently estimated at U$100 million per month, with Equity Bank’s market share being estimated at 13 percent. We strive to maximize the remittance volumes coming to Tanzania by increasing convenience through partnering with like-minded companies like Nala,” Kiboti said.
“Through this relationship, we will be able to keep pace with digital developments to unlock the full investment potential of our Diaspora customers, by offering a safe, fast, secure and cost-effective channel for transfer of funds to benefit their dependents and investments in Tanzania," he added.
The Equity Bank and Nala partnership will save customers’ time and money, enabling them to instantly send vital funds home in a few taps from their smartphones. Customers sending money to Tanzania can choose from various convenient payout options, including bank transfer and mobile wallet, enabling them to bank and invest back home quickly.
Commenting on the deal, Nala CEO, Benjamin Fernandes said his company is delighted to partner with a key financial institution like Equity Bank (T) to enable customers make faster, simpler and cheaper transaction from abroad.
“We make sending money home as easy as sending an SMS. Equity Bank has set a great example for how they prioritize the importance of technology and have been forward thinking with the way they deal with technology partners,” Fernandes said adding that Nala work with Equity Bank in a few countries in Africa where it has presence such as DR Congo, Kenya, Rwanda, South Sudan and Uganda. Fernandes who is also the founder of Nala said his ambition is to increase economic opportunities for Africans globally through international money transfer and trade.
Equity Bank Tanzania which began its operations in the country in February 2012, is a wholly-owned subsidiary of Equity Group Holdings Plc, a financial services company listed at the Nairobi Securities Exchange, Uganda Securities Exchange and Rwanda Stock Exchange.
Nala is a mobile remittance application that is tailored to the needs of the African Diaspora. The company started doing international money transfers in 2021. Nala is currently enabling money transfers from the UK to Tanzania, Kenya, Uganda and Ghana and is on track to offer the same services to eight more African countries by mid-next year.