BoT licenses Kuda to support Diaspora remittance

TANZANIA: THE Bank of Tanzania (BoT) has licensed Kuda, a fintech company focused on managing financial programmes for Africans, as a Payment Service Provider (PSP).

This development will offer the Tanzanian diaspora convenient financial services for home investments and support for social services, thereby facilitating stronger connections and contributions to their communities back home.

According to the BoT, the demand for money transfers from the diaspora is rising, reaching 569.3 million US dollars in 2021.

ALSO READ: Mobile money boom drives digital economy growth: TCRA

Kuda Technologies Chief Executive Officer, Babs Ogundeyi, stated that obtaining the PSP license in Tanzania is a significant milestone for the company in expanding its reach across Africa, particularly in terms of investment and economic development for families as a whole.

“The license from the BoT allows us to provide reliable financial services at low costs, empowering Tanzanians living abroad to participate in nationbuilding through investments and family development,” Mr Ogundeyi said.

He added that Tanzanians residing in the UK, the European Union, the US and Canada can access this service at affordable rates through various payment methods, including cards, mobile money, bank transfers, USSD and EFT, thanks to advancements in technology.