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<p>Online retailer Jumia says its third-quarter gross profit after fulfilment, sales and advertising expenses turned positive for the first time at the group level, with the majority of countries breaking even. The e-commerce company reported a 22 per cent increase in its gross profit for the third quarter of the year. Juliet Anammah, Chairwoman for Jumia Nigeria and Head of Institutional Affairs at Jumia Group spoke to CNBC Africa for more.</p>


Jumia reports 22% gross profit increase in third quarter


<p>LAGOS (Reuters) &#8211; Revenues for African e-commerce heavyweight Jumia slid by 10% in the second quarter, dashing hopes that lockdowns aimed at stemming the spread of the new coronavirus would lead to a flood of online orders.</p>



<p>The company also said it would pay $5 million to settle class action lawsuits alleging misstatements and omissions related to its initial public offering.</p>



<p>Shares in the struggling firm were 27% lower by 1350 GMT at $11.82 per share, driven in part by a 13% decline in gross merchandise value (GMV) — a closely watched figure that tallies the total amount of goods sold over the period.</p>



<p>Revenue for the quarter fell to 34.9 million euros ($41.1 million). The company said while there were surges in demand in markets that went into total lockdown, this only happened in four countries, which hold 24% of its adjustable market.</p>



<p>Softer restrictions elsewhere led to “less drastic changes in consumer behaviour”, Jumia co-founder Sacha Poignonnec said on an earnings call, while the surge in some markets was offset by lost revenue due to logistical problems and closed borders.</p>



<p>“Things went back to normal sometime in (the second quarter), and since then have been pretty steady, with no significant disruption and no significant surge,” Poignonnec said.</p>



<p>Still, Poignonnec pointed to encouraging signs including a 26% drop in its adjusted loss before interest, tax, depreciation and amortization, a rise in gross profits per order, and higher orders of the fast-moving consumer goods it hopes will yield more frequent orders.</p>



<p>“We are still at the very beginning of e-commerce in Africa,” he said.</p>



<p>Jumia was the first Africa-focused tech start-up to list on the New York Stock Exchange and reached a market capitalisation of over $1.5 billion just after it went public in April 2019.</p>



<p>It has since faltered, and its share price on Wednesday was roughly 70% below last year’s peak.</p>



<p>($1 = 0.8495 euros)</p>


Jumia_Maroc

African e-commerce firm Jumia takes lockdown revenue hit

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<p>As of last weekend the Government of Rwanda deemed all bars closed, and all restaurants and cafe&#8217;s only open for take away services for an initial period of two weeks. That leaves the country that&#8217;s officially on lock down with no choice but to cook or order their food to go, and with local security forces peppering the streets ensuring that quarantine rules are followed, food delivery services are becoming more useful than ever. Insert Vuba Vuba, the delivery service that emerged when Jumia officially closed it&#8217;s Rwanda operations at the end of last year. Albert Munyabugingo, Founder of the service joins CNBC Africa to explain how the lock down has affected his business.</p>


This is how COVID-19 affecting local businesses in Rwanda

This is how COVID-19 is affecting local businesses in Rwanda

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<p>Last month it was announced that Jumia was suspending their food delivery services here in Rwanda, the news came amidst reports that the Pan-African e-commerce company had already shut down operations in several other African countries, including Cameroon and Tanzania, but to customers here in Kigali, the news was still quite surprising. The service had become a mainstay in many city dwellers&#8217; lunch and dinner plans and the outcry was heard on Twitter. Enter, Vuba Vuba – a new company by former Jumia Rwanda Managing Director, Albert Munyabugingo, plans to pick up where Jumia Food left off. He joins CNBC Africa for more.</p>


Exit Jumia Food

Exit Jumia Food, enter Vuba Vuba – MD Albert Munyabugingo on how new food delivery service plans to cater to Rwandan market

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<p>Last week, Jumia best known here in Kigali for its restaurant delivery service announced it is suspending operations in Rwanda. Moreover, Qatar Airways to take 60 per cent stake in new Rwandan international airport and Rwanda, Uganda talks failed to reach agreement on cross-border issues. Kelly Rwamapera, Reporter at The East African joins CNBC Africa for more.</p>


Jumia to close Rwandan business

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<p>News arrived this week that Pan-African e-commerce company, Jumia – best known here in Kigali for its restaurant delivery service, is suspending operations in Rwanda. This comes after the company already shut down in Cameroon and Tanzania. Back in April the company, which many compared to Amazon, showed immense promise with a very high valuation and a New York listing, now with the new setbacks, what does this mean for them and the generation of African start-ups behind them that were looking to follow in their footsteps? Kenneth Agutamba, Analyst and Chief Strategist at Impact Communication Strategies joins CNBC Africa for more.</p>


How does Jumia’s setbacks impact other African start-ups?


<p>JOHANNESBURG (Reuters) &#8211; Online retailer Jumia Technologies, often called “the Amazon of Africa,” has closed its e-commerce business in Tanzania, it said in a statement on Thursday, less than two weeks after shutting down in Cameroon.</p>



<p>“As part of our ongoing portfolio optimisation effort, Jumia has come to the difficult decision to cease our operations in Tanzania effective on November 27,” the company said in a statement.</p>



<p>Reporting by Joe Bavier; editing by Jason Neely</p>


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Jumia closes e-commerce business in Tanzania two weeks after shutting down in Cameroon

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<p>Pan-African e-commerce giant Jumia has suspended its Marketplace business in Cameroon. Jumia did not publicly announce its imminent closure in the country and the move took many customers and local staff by surprise – CNBC Africa&#8217;s Arnold Kwizera spoke to Tech entrepreneur, Rebecca Enonchong on the latest move by Jumia.</p>


Jumia troubles continue

Jumia troubles continue, shuts down some offices in Africa


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<p>Jumia has been dubbed the &#8220;Amazon of Africa.&#8221; It&#8217;s Africa&#8217;s largest e-commerce operator, surpassing Amazon and China&#8217;s Alibaba, and it&#8217;s the first African tech start-up to go public on the New York Stock Exchange. Investors had high hopes for Jumia when it went public on April 12. Now, Jumia is adjusting to its new international status, and figuring out what that status means for the African continent.</p>
<p>Jumia is Africa&#8217;s largest online retailer. Sacha Poignonnec and Jeremy Hodara, former McKinsey &amp; Company employees, founded the company in 2012. Like Amazon and Alibaba, Jumia allows customers to buy products like cell phones, shoes, and groceries online. Jumia also offers bill paying, food delivery, and cellular data plans.</p>
<p>China Daily, a Chinese state-run news organization, says that Alibaba serviced 4.2 million African customers through its AliExpress services since it entered the continent.</p>
<p>Jumia serviced 4.3 million users and 81,000 active sellers in 14 countries. Amazon is available in 11 countries on the African continent, but neither Amazon nor Alibaba have had the benefit of getting their start in African countries. Jumia, for example, offers unique features like allowing customers to pay for items upon delivery.</p>

Why Jumia Is Beating Amazon And Alibaba In Africa

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<p>Jumia&#8217;s share price rose to 25 dollars 46 cents at the close of trading on Friday as investors on the New York Stock Exchange warmed up to the retailers listing. Juliet Anammah, CEO of Jumia Nigeria joins CNBC Africa from New York to discuss the company’s strategy going forward.</p>


Jumia charts new path with NYSE IPO

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<p>Jumia, an African e-commerce company, dubbed the African Amazon, listed on the New York Stock Exchange. In early trade its share price was up 61 per cent to $23.41. CNBC spoke to its CEO Sacha Poignonnec about the listing and its plans.</p>


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

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<p>Jumia, an African e-commerce company that is backed by MTN is set to launch its IPO on the New York Stock Exchange later today, this could value the firm at $1.6 billion or more. Joining CNBC Africa for more on the Jumia listing is MTN Group CEO, Rob Shuter.</p>


Africa’s unicorn Jumia lists Friday; shareholder MTN reveals details

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<p>Raphael Afaedor, Co-Founder &amp; CEO Supermart Nigeria joins CNBC Africa to analyse the challenges of online retailing in Nigeria.</p>


Nigeria’s online retail: Should payment on delivery be scrapped?

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<p>E-commerce firm, Jumia has gotten into the lending space targeting small and medium enterprises in Africa. Jumia says to its sellers will be able to access credit at an interest rate of 12 per cent.</p>


Jumia to lend to SMEs

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<p><em>This content piece was supplied to CNBC Africa by Standard Bank</em></p>
<p>After scouring the store for a new pair of sneakers, Paballo Molahlehi finally lands on the one that catches her attention. She stares at it excitedly, swooning over the fresh pair of purple Reeboks. “It’s precisely the one I was looking for, I knew I was going to find it here” she nods as she adds the shoes to her shopping basket. Thrilled with her latest addition to her growing sneaker collection, she navigates her way to the pay point. Molahlehi is doing all this while reclining comfortably on her couch, enjoying the convenience of online shopping. “I stopped going in-store after discovering online shopping. It makes more sense because my purchases get delivered to me for free, and I usually get discounts.”</p>
<p>Molahlehi is among Africa’s growing middle class who have money to spend and whose shopping habits have changed. With the surge of internet penetration on the continent, many Africans are easing into the habit of shopping online. According to a McKinsey’s Lions go digital report, online shopping could account for up to 10% of retails sales (with a value of around US $75 billion) by 2025, as more Africans gain access to the internet.</p>
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<p>The increasing access to the internet is seeing a rapid emergence of e-commerce sites eager to tap into the continent’s growing online consumerism. The likes of Nigeria, Kenya, and South Africa are at the forefront of this evolution. Companies such as Jumia, a Lagos-based online retailer, are dipping their finger in almost all major markets on the continent, cutting themselves an enviable piece of every pie. Jumia is also among Africa’s best-funded e-commerce sites, having raised US $150 million in funding in 2014.</p>
<p>As more people take to the internet to do their shopping, the demand for devices such as smartphones also increases. The 2017 Accenture Digital Consumer Survey finds that in countries such as South Africa, smartphone acquisition increased from 52% in 2016 and 63% in 2017. Some of the more technologically advanced nations like Kenya and Nigeria boast a smartphone uptake of more than 44% and 30% respectively. Across the continent, the number of smartphone users saw a nearly twofold increase, reaching more than 226 million. This spike in smartphone penetration is steering a digital revolution on the continent, exposing users to the endless opportunities the internet provides.</p>
<p>Here are some of the top e-commerce platforms in Africa that are reaping the benefits of the booming internet penetration on the continent.</p>
<p><strong>JUMIA</strong></p>
<p>With a mission statement and ethos for connecting African consumers and entrepreneurs to do better business together, Jumia is blazing the trail of e-commerce sites in Africa.</p>
<p>The company is creating a platform where small, medium and large African companies link with their potential market, thus creating a new-age ecosystem that bypasses the middle man.</p>
<p>Launched in 2012 in Nigeria, the site has solidified a footprint in over 23 African countries, with a network of over half a million sellers since its inception. Jumia has managed to create a stellar reputation for being a hub for products and services spanning across the retail, food and hospitality, talent recruitment, concierge and the hotel and catering industries. Apart from servicing the needs of consumers and businesses, Jumia has also been upskilling and aiding employment for many Africans who are qualified in areas such as Engineering, IT and online marketing and web development.</p>
<p><strong>TAKEALOT</strong></p>
<p>South Africa’s Takealot is the go-to online retailer for the shopper that seeks a convenient and simplified online buying and user experience. The site has been around for over a decade, having been established in the year 2002. Its broad catalogue and variety of products in entertainment gives it an impressionable edge. Customers can shop anything from books to games, computers and TVs.</p>
<p>Part of what makes Takealot an e-commerce success story is that the online retailer strives to provide its customers with the very latest products in the market, coupled with up-to-date product specification.</p>
<p>In April 2017, Takealot scored a significant investment of over US $69 million from Naspers, one of Africa’s biggest digital companies. This came after the online retailer received US $100 million investment from investment firm Tiger Global Management in 2014. Naspers boasts a 53,5% stake in Takealot, while Tiger Global owns about 34%.</p>
<p><strong>KILIMALL</strong></p>
<p>Kenya’s largest online shopping mall, Kilimall is relatively new in the e-commerce space but has remarkably managed to create an inter-continental mark since its launch in 2014. The site, now established in other countries such as Nigeria and Uganda, has a retail customer base that continues to boom.</p>
<p>Kilimall is known for providing electronics such as phones, computers and gadgets, stocking top brands such Samsung, Huawei, Lenovo, and Phillips. The site also offers other products such as home appliances, clothes, books, health and beauty products, and more. All its services are accompanied by a 7-day free return policy on their premium range of goods, making it an attractive choice for consumers.</p>
<p><strong>KONGA</strong></p>
<p>Konga has come a long way since its humble beginnings in 2012 as a Lagos-only e-commerce site that specialised in baby and beauty care. The online platform has morphed into a major online retailer, often dubbed “The Amazon of Africa.” In 2015, Konga joined forces with leading Nigerian banks to launch KongaPay, a safe and convenient online payment method to tackle the issue of trust in Africa when it came to online payments.</p>
<p>The online marketplace was one of the first in Africa to create a system of payment that was integrated with world banks – an innovation that uses click system that eliminated the sharing of sensitive information during payments.</p>
<p>With a backing from the South African media giant, Naspers, Konga is now a major player in the e-commerce space. In 2014, Naspers, which has a 50% stake in Konga, invested US $50 million in the online store.</p>
<p><strong>BIDORBUY</strong></p>
<p>Established in 1999, South Africa’s online store Bidorbuy is one of the oldest online marketplaces in Africa. What makes the site unique is that buyers don’t only get to purchase what they want, but they can also make a bid for products, functioning as an online auction. The site provides a platform to facilitate trade between buyers and sellers. Previously owned items such as antiques and collectables are some of the most popular on Bidorbuy, making up 40% of all items sold. Other second-hand products shoppers prefer include high-end DSLR cameras and lenses, laptops, books, as well as video games.</p>
<p>Over the years, Bidorbuy has made several acquisitions of South African online businesses. These include popular sites such as online jobs portal, Jobs.co.za and e-commerce company uAfrica.com.</p>
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Africa’s e-commerce boom is giving rise to a sophisticated African digital consumer

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<p>E-commerce is proving to be a disruptor of the retail landscape in Kenya as shoppers increasingly do their purchases online; Jumia, which has been in the market for five years sees the next step of partnering with supermarket chains to keep up with needs of a growing tech savvy population. Sam Chappatte, MD at Jumia Kenya joins CNBC Africa for more.</p>


Jumia

Jumia reports 22% gross profit increase in third quarter

African e-commerce firm Jumia takes lockdown revenue hit

This is how COVID-19 is affecting local businesses in Rwanda

Exit Jumia Food, enter Vuba Vuba – MD Albert Munyabugingo on how new food delivery service plans to cater to Rwandan market

Jumia to close Rwandan business

How does Jumia’s setbacks impact other African start-ups?

Jumia closes e-commerce business in Tanzania two weeks after shutting down in Cameroon

Jumia troubles continue, shuts down some offices in Africa

Why Jumia Is Beating Amazon And Alibaba In Africa

Jumia charts new path with NYSE IPO

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

Africa’s unicorn Jumia lists Friday; shareholder MTN reveals details

Nigeria’s online retail: Should payment on delivery be scrapped?

Jumia to lend to SMEs

Africa’s e-commerce boom is giving rise to a sophisticated African digital consumer

Jumia to partner major supermarkets to expand online grocery market

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Jumia

Jumia reports 22% gross profit increase in third quarter

African e-commerce firm Jumia takes lockdown revenue hit

This is how COVID-19 is affecting local businesses in Rwanda

Exit Jumia Food, enter Vuba Vuba – MD Albert Munyabugingo on how new food delivery service plans to cater to Rwandan market

Jumia to close Rwandan business

How does Jumia’s setbacks impact other African start-ups?

Jumia closes e-commerce business in Tanzania two weeks after shutting down in Cameroon

Jumia troubles continue, shuts down some offices in Africa

Why Jumia Is Beating Amazon And Alibaba In Africa

Jumia charts new path with NYSE IPO

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

Africa’s unicorn Jumia lists Friday; shareholder MTN reveals details

Nigeria’s online retail: Should payment on delivery be scrapped?

Jumia to lend to SMEs

Africa’s e-commerce boom is giving rise to a sophisticated African digital consumer

Jumia to partner major supermarkets to expand online grocery market

News Tips

Advertise With Us

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