Fintech company Onafriq Nigeria Bills Restricted has introduced it’s going to wind down its Nigerian agent banking trade, Baxi, and refocus on pan-African bills.
In a commentary on Friday, the corporate cited macroeconomic headwinds reminiscent of inflation and foreign money depreciation as key components affecting buying and selling volumes and working prices and undermining the sustainability of its offline agent banking style.
South Africa-based Onafriq, with a footprint in Morocco, Mali, Kenya, and Tanzania amongst others, entered the Nigerian agent banking marketplace in 2021 when it received the Baxi trade (sometimes called Capricorn Virtual Restricted) and invested closely thru 2023 to enhance and scale its agent community.
Running prerequisites modified considerably for the company starting in 2024, with a pointy depreciation of the naira and broader macroeconomic pressures dramatically impacting its operations.
A fast enlargement of fast account-to-account bills concurrently modified the combo of transactions at brokers’ POS.
In keeping with Onafriq, larger festival on this phase, coupled with related margin compression, additional strained the trade.
After reviewing its long-term technique and the trade’s sustainability, the crowd concluded that winding down the agent banking operation is cross.
“We entered Nigeria with conviction and dedication, however didn’t succeed in the end result we set out for. Final this trade used to be a hard choice to reach at, one that is affecting colleagues, brokers, and trade companions throughout Nigeria who poured their hearts and soul into development out the Baxi community,” Dare Okoudjou, founder and CEO of Onafriq, mentioned
“We’re dedicated to honesty, equity, and a well-managed transition for everybody impacted. Nigeria stays central to our venture, and we will be able to proceed to serve the marketplace as a Fee Answer Carrier Supplier in the course of the Onafriq bills community and our card issuing products and services,” he added.
The closure will most effective have an effect on workers whose roles are attached to the agent banking trade. The corporate mentioned each and every affected worker will probably be consulted, handled rather, and supported in the course of the transition.
Onafriq mentioned brokers onboarded by the use of the Baxi bills platform had been transitioned to some other main financial institution, and it has requested them to switch their budget to their most popular main financial institution inside 30 days.
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“Onafriq’s groups are to be had to offer improve and steering all the way through the method. The corporate will proceed to honour its commitments to affected stakeholders and keep in touch overtly throughout the transition,” the corporate mentioned.
It added that the verdict impacts most effective its agent banking trade in Nigeria and does no longer constitute an go out from the Nigerian marketplace.
“Onafriq Crew stays sturdy, with persevered enlargement throughout its cross-border bills community and card issuing products and services,” it mentioned.
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