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to $49 million and gross merchandise value
increased five percent to $181 million.
“Jumia is off to a strong start to
the year," says Dufay. "Following a
transformational 2023, we continued to
execute against our strategic priorities
focused on strengthening our core
Reliable internet business and improving cash efficiency
while establishing a leaner organisation
access and efficient primed for growth. Our efforts drove a
physical road five percent year-over-year and 39 percent
constant currency improvement in GMV
networks are crucial. in the quarter while order growth and
While Africa is making average order value (AOV) also expanded,
strides in this area, a clear sign that our strategy is working.
"We have proven that with the right
there's still room team and the right strategy, growth does
for improvement, not require heavy spending. Rather, a deep
especially in rural understanding and appreciation of the
African e-commerce market, along with
areas which generally a targeted growth strategy leaves us well
have poor road positioned to drive continued growth in
infrastructure and 2024 and beyond.”
inefficient addressing BOOMING MARKETS AHEAD
systems. Africa's young population, with a
median age of 18 years, is pushing digital
FRANCIS DUFAY
JUMIA commerce adoption in a mobile-first
environment, according to an analysis by
EBANX, a payment technology company.
South Africa is the e-commerce giant's "Although payments are rather
first marketplace in the sub-Saharan digitised, consumption isn't: only 11
region, and it will be going head-to- percent of Africans are digital commerce
head in the country with local players users, per the World Bank. With mobile
like Takealot (majority-owned by media money and mobile internet more
giant Naspers), Makro and Bob Group's ubiquitous in the continent, it is not a
bidorbuy to tap what is estimated to be lack of connectivity that explains why
e-commerce revenue worth $3 billion digital commerce in Africa has yet to
annually, TechCrunch reported. ramp up. The issue consumers face is a
ith the launch of operations "Amazon is already present in Egypt lack of offerings — and, more so, a lack of
in South Africa by Amazon, in a market where Jumia has a strong payment connection."
e-commerce in the African presence," says Francis Dufay, CEO, Jumia, The continent has some of the fastest-
W continent is all set to hit the a leading e-commerce marketplace in growing rates worldwide, and by 2030, Africa
big league. Africa. "Competition is above all good will have a potential market of over one
"We are excited to launch Amazon. news as it validates the opportunity of billion adults — surpassing China and India.
co.za, along with thousands of independent African e-commerce and helps to grow The African Continental Free Trade
sellers in South Africa," says Robert Koen, the market. South Africa is, however, Area (AfCFTA) protocol on digital
Managing Director, Sub-Saharan Africa, a very specific market, different from trade can provide a framework for the
Amazon. "We provide customers with most African countries with mature convergence of domestic and regional
great value, broad selection including retail networks, stable supply and very policies, according to a report by the ODI
international and local products and a competitive e-commerce space." Advisory authored by Alberto Lemma,
convenient delivery experience. From Max Mendez-Parra and Laura Naliaka.
today, customers can count on Amazon. JUMIA EYES GROWTH, "There is a large list of issues that will
co.za for a stress-free shopping experience, LESSER LOSSES need to be addressed but at the same time
fast and reliable delivery, access to 3,000 NYSE-listed Jumia reported an operating there are a wide range of best practices in
pickup points, 24/7 customer support, and loss of $8 million for the first quarter of 2024, global bilateral agreements that could be
easy returns. Customers will also enjoy free down 71 percent from a loss of $28 million drawn upon. There is also the question of
delivery on their first order." in Q12023. Revenue was up 19 percent YoY how deep member states want to commit.

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