Business A.M
No Result
View All Result
Saturday, October 17, 2026
  • Login
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
Subscribe
Business A.M
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
No Result
View All Result
Business A.M
No Result
View All Result
Home Africa

Sri Lankan companies eye Africa as next investment destination, says Stax

by Admin
August 1, 2017
in Africa

STAX Inc, a strategy consultancy, says as African economies continue to grow, more opportunities will open up for Sri Lankan firms in areas such as tourism, hospitality education, and green energy.

“Service industries such as retail, banking, and healthcare can also expand into to Africa to take advantage of the growth in the services sector,” said Rasitha Wickramasinghe, business development lead of STAX Inc.

“Mini-hydro power companies such as VS Hydro and Hemas Power, a subsidiary of Hemas Holdings plc, were among the early entrants of Sri Lankan companies into Africa as opportunities in the local market started to saturate. They were followed by construction, ICT, logistics and automotive companies.”

Wickramasinghe says STAX is seeing renewed interest in African countries as of late and that it recently assisted a Sri Lankan FMCG market leader to tap into the burgeoning consumer market in East Africa by helping it to find suitable in-country partners.

In the ICT sector, hSenid, the largest Human Capital Management (HCM) solution in Sri Lanka, entered the African market more than 10 years ago when it successfully bid for an RFP in Tanzania with a local partner.

According to Founder Chairman Dinesh Saparmadu, Africa is a high growth market for companies with clients in banking, insurance, telecom, and NGO sectors.

“Today we have more than 60 corporate clients across 17 African countries for our HCM and mobile solutions.”

In order to cater for growing demand, hSenid opened an office in Nairobi, Kenya and from there rest of the African continent is serviced via direct and partner channels.

St. Theresa Industries (STI), a company that specialises in the manufacturing of power distribution and transmission materials, is another company that has expanded into Africa over the last four years.

In 2013, STI set up a factory with a local partner in Kenya to take advantage of the huge market potential due to limited rural electrification and distribution network.

“We were able to take advantage of the 2030 vision of the Kenyan government which promotes local manufacturing by providing exclusive rights to government contracts,” Madusanka Fernando, director of STI said.

“To date, we have been successful in securing over US 15 million dollars worth of contracts from the public and private sector and are already looking to increase our footprint to Tanzania and Rwanda by the end of this year.”

During 2017, apparel manufacturers Hela clothing and Hirdaramani group also established their manufacturing presence in Africa.

As a whole, Africa has become more peaceful and stable over the last decade.

The World Health Organisation reports that deaths through conflict in Africa declined by 95 percent between 2000 and 2012. This improved peace and stability is starting to reap economic benefits for the African nations.

Between 2000 and 2007, Sub-Saharan Africa nearly tripled its growth rate to 6 percent a year and over the last decade African economies have added nearly US 1 trillion dollars, and the combined GDP of African countries today stand around the US 2.2 trillion dollars.

The combined population of Africa is 1.2 billion today and accounts for more than 15 percent of world’s population. Africa’s working age population as a share of the total population is set to continue to rise from its current 56 percent, all the way through to the next century.

The link between a country’s level of urbanisation and economic growth is also well established, two decades ago less than 30 percent of Africa’s population lived in urban areas. This has increased to 40 percent today.

Admin
Admin
Previous Post

26-year-old Nigerian entrepreneur wants to transform how Africans pay

Next Post

China’s Didi invests in Taxify, an Uber rival operating in Europe, Africa

Next Post

China's Didi invests in Taxify, an Uber rival operating in Europe, Africa

  • Trending
  • Comments
  • Latest

How UNESCO got it wrong in Africa

May 30, 2017

CBN to issue N1.5bn loan for youth led agric expansion in Plateau

July 29, 2025
MMA2 enters new commercial era after 20-year concession dispute

MMA2 enters new commercial era after 20-year concession dispute

August 28, 2026
NGX taps tech advancements to drive N4.63tr capital growth in H1

Insurance-fuelled rally pushes NGX to record high

August 8, 2025

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026
Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

Onafriq winds down Baxi as Nigeria’s agent banking economics worsen

October 17, 2026
LCFE links petroleum trading to capital market in pricing transparency drive

LCFE links petroleum trading to capital market in pricing transparency drive

October 17, 2026

Popular News

  • How UNESCO got it wrong in Africa

    0 shares
    Share 0 Tweet 0
  • CBN to issue N1.5bn loan for youth led agric expansion in Plateau

    0 shares
    Share 0 Tweet 0
  • MMA2 enters new commercial era after 20-year concession dispute

    0 shares
    Share 0 Tweet 0
  • Insurance-fuelled rally pushes NGX to record high

    0 shares
    Share 0 Tweet 0
  • Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE

© 2026 Business A.M