Amazon of Africa: Jumia lists on NYSE, CEO shares plan to profitability

Jumia, an African e-commerce company often likened to the 'Amazon of Africa', made a bold entrance onto the New York Stock Exchange with its shares soaring by 61% to $23.41 in early trade. The company's CEO, Sacha Poignonnec, shed light on the path to profitability during an interview with CNBC Africa. With recent tech IPOs flaunting losses, Poignonnec emphasized the significance of boosting revenues and curbing expenses to achieve sustainability. He highlighted Jumia's robust growth trajectory driven by a solid business model and the burgeoning e-commerce landscape in Africa. Poignonnec delved into the unique value proposition that Africa presents for Jumia, specifically noting the challenges sellers face in distributing their products across the continent due to infrastructural inefficiencies. Jumia has capitalized on this by developing a technology-driven platform that streamlines the distribution process for sellers and offers a seamless shopping experience for consumers. The CEO underscored the growing trend of online retail in Africa, positioning Jumia as a key player in catering to the evolving preferences of consumers who seek a diverse range of products and competitive prices. Despite Jumia's presence on the African continent, Poignonnec clarified that the company is deeply rooted in its African identity, employing over 5,000 staff members within Africa itself. While acknowledging the scarcity of technical talent in certain African regions, he voiced a commitment to fostering homegrown talent and advocated for a collective effort in nurturing the tech ecosystem within Africa. Poignonnec dispelled concerns over long-term risks such as mobile penetration, political instability, and infrastructure development, citing the substantial internet user base in Africa and the company's strategic initiatives to enhance consumer adoption of e-commerce. On the logistics front, Poignonnec highlighted Jumia's collaboration with local entrepreneurs and logistics companies to fortify the delivery network in Africa. By equipping these partners with technological tools, processes, and data insights, Jumia has been able to extend its reach to both urban centers and rural areas, thereby promoting inclusivity and accessibility for a wider consumer base. In a concluding remark, Poignonnec expressed gratitude for the enthusiastic market reception to Jumia's listing on the NYSE, reflecting a positive outlook for the company's future growth trajectory. The CEO's insights shed light on Jumia's strategic roadmap towards profitability and sustainability amid a dynamic e-commerce landscape in Africa.