Dar es Salaam. A fintech, NALA, founded by Tanzanian entrepreneur Benjamin Fernandes, has received a financial boost after it was announced on the US stock exchange NASDAQ to have secured a $40 million (over Sh100 billion) investment.
This investment will enable the fintech, which relocated its regional head office to Kenya, to achieve its goal of further international growth and to improve the quality and security of payments across Africa through a new payment system developed by the company called Rafiki.
NALA has received this investment from major global investment firms such as Acrew Capital, DST Global, Amplo, and others.
Fernandes, 31, founded NALA at the age of 24. He currently serves as the founder and CEO. NALA is an international financial technology company that enables people and businesses to make cross-border payments between the USA, UK, and Europe to Africa. Nala was the first East African fintech company selected for Y-Combinator in the USA.
The company says it will use this investment to achieve its international goals by focusing on two main things: increasing services for sending and receiving money outside of Africa and creating banking services for immigrants and people living abroad.
Nala has stated that its new international payment system called Rafiki is expected to be used by billions of people, ensuring customers high-quality and secure payment services, excellent foreign exchange services, low transaction costs, and enabling businesses to send and receive payments easily. “This will bring a revolution in payment services in Africa similar to what dlocal did in Latin America and AirWallex did in Asia,” the company said.
NALA has continued to perform well over the past 12 months, witnessing a 34-fold increase in transactions processed on NALA, the number of employees increasing from 7 to 100, and the number of customers reaching 500,000, with branches added in 21 European countries.
During an interview with MillardAyo, Fernandes said, “This investment of Sh106 billion will enable us to expand our financial services. In addition to providing remittance services (sending money from abroad to home in Africa), we will also offer new international payment services outside of Africa. We will use this money to improve the infrastructure of our new payment system (called Rafiki), improve the quality and speed of financial services, and reduce transaction costs. NALA is not just participating in the changes in financial services; we are making those changes happen.”
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
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