
<p>The African Development Bank says African growth will rebound this year, recovering from its first recession in 50 years. In its flagship African Economic Outlook report, Africa&#8217;s biggest development bank noted tourism dependent economies, oil exporters and resource rich nations had been the hardest hit by the pandemic.</p>



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<p>The 2021 edition of the African Economic Outlook focuses on debt resolution, governance, and growth in Africa. Chapter 1 examines Africa’s growth performance and outlook amid the COVID–19 pandemic. The chapter emphasizes policy options to mitigate the effects of the pandemic in the short, medium, and long terms. Chapter 2 explores the causes and consequences of Africa’s debt dynamics by showing how the changing structure and composition of debt create vulnerabilities. In chapter 3, the report takes stock of the challenges in the current global architecture for debt resolution and explores the link between governance and growth with an emphasis on proposed reforms to improve the processes of debt resolution, governance, and sustainable growth.</p>



<p>Read and download the full report below: </p>



<p><a style="text-decoration: underline;" title="View African Economic Outlook 2021 on Scribd" href="https://www.scribd.com/document/498808202/African-Economic-Outlook-2021#from_embed">African Economic Outlook 2021</a> by <a style="text-decoration: underline;" title="View CNBC Africa's profile on Scribd" href="https://www.scribd.com/user/543888036/CNBC-Africa#from_embed">CNBC Africa</a> on Scribd</p>



<p><iframe loading="lazy" id="doc_79291" class="scribd_iframe_embed" title="African Economic Outlook 2021" src="https://www.scribd.com/embeds/498808202/content?start_page=1&amp;view_mode=scroll&amp;access_key=key-1NGzNX71nlXoy1TfSxbI" width="100%" height="600" frameborder="0" scrolling="no" data-auto-height="false" data-aspect-ratio="0.75"></iframe></p>


AE)2021

African Development Bank Sees 2021 Growth Rebound, Cautions on Growing Inequality


<p><a href="https://www.cnbc.com/quotes/C" target="_blank" rel="noreferrer noopener">Citi</a>&nbsp;thinks&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=BTC.CM=">bitcoin</a>&nbsp;is at a “tipping point” and could one day “become the currency of choice for international trade” as companies like&nbsp;<a href="https://www.cnbc.com/quotes/TSLA" target="_blank" rel="noreferrer noopener">Tesla</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/PYPL" target="_blank" rel="noreferrer noopener">PayPal</a>&nbsp;warm to it and central banks explore issuing their own digital currencies.</p>



<p>“There are a host of risks and obstacles that stand in the way of Bitcoin progress,” the U.S. investment bank’s global perspectives and solutions team wrote in a note Monday.</p>



<p>“Bitcoin’s future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”</p>



<p>It marks a change in tone for major financial institutions on bitcoin. Many banks have historically shunned the digital asset, arguing it has no intrinsic value and the hype surrounding it is akin to the tulip mania of the 17th century.</p>



<p>But bitcoin’s wild ascent over the last few months has forced big Wall Street players to reevaluate the cryptocurrency. BNY Mellon, the oldest bank in the U.S., last month said it would&nbsp;<a href="https://www.cnbc.com/2021/02/11/bny-mellon-to-offer-bitcoin-services-a-validation-of-crypto-from-a-key-bank-in-the-financial-system.html">offer custody services for bitcoin</a>&nbsp;and other digital currencies. Meanwhile, JPMorgan has said it’s&nbsp;<a href="https://www.cnbc.com/2021/02/12/bitcoin-banks-closer-accepting-cryptocurrency-asset-class.html">looking seriously as bitcoin</a>.</p>



<p>Bitcoin and other cryptocurrencies are often subject to wild bouts of volatility. Just over a week after hitting an&nbsp;<a href="https://www.cnbc.com/2021/02/22/bitcoin-btc-price-down-10percent-after-elon-musk-says-prices-seem-high.html">all-time high of more than $58,000</a>, bitcoin’s price has shed more than $10,000. It’s still up over 60% on the year and 460% in the last 12 months.</p>



<p>Crypto investors say bitcoin’s latest bull run is unlike previous cycles — including in 2017, when it rose close to $20,000 before plummeting 80% the following year — as it has been driven by increased participation from institutional investors.</p>



<p>Initially created as a digital payments system for bypassing banks and other financial middlemen, bitcoin has since gained traction among mainstream investors as a kind of “digital gold” that can act as a hedge against rising inflation.</p>



<p>There are several hurdles that bitcoin would have to overcome before seeing mainstream adoption, according to Citi.</p>



<p>“The entrance of institutional investors has sparked confidence in cryptocurrency but there are still persistent issues that could limit widespread adoption,” Citi said.</p>



<p>“For institutional investors, these include concerns over capital efficiency, insurance and custody, security, and ESG considerations from Bitcoin mining,” the bank added. “Security issues with cryptocurrency do occur, but when compared to traditional payments, it performs better.”</p>



<p>Bitcoin mining — the process that releases new coins into circulation —&nbsp;<a href="https://www.cnbc.com/2021/02/05/bitcoin-btc-surge-renews-worries-about-its-massive-carbon-footprint.html">requires a considerable amount of power</a>. So-called miners with purpose-built computers are competing to solve complex math puzzles to verify transactions. According to Digiconomist, bitcoin’s network has a carbon footprint on par with that of New Zealand. This has alarmed environmental activists.</p>



<p>Last month, analysts at JPMorgan called bitcoin an “<a href="https://www.cnbc.com/2021/02/22/forget-bitcoin-fintech-is-the-real-covid-19-story-jpmorgan-says.html">economic side show</a>” and said crypto assets ranked as the “poorest hedge” against significant drops in stock prices. The rise of digital finance and demand for fintech alternatives is the “real transformation story of the Covid-19 era,” they added.</p>


In this photo illustration, BTCUSD / Bitcoin USD price

Bitcoin is at a tipping point and could become ‘currency of choice’ for global trade, Citi says


<p>JOHANNESBURG, March 1 (Reuters) &#8211; South Africa&#8217;s Standard Bank has hired an independent environmental and social advisor to help assess its involvement in Total&#8217;s East African Crude Oil Pipeline that environmental groups have opposed, it said on Monday.</p>



<p>About 263 civil society organisations from around the world, have urged the chief executives of 25 banks not to participate in loans to fund the construction of the $3.5 billion East Africa Crude Oil Pipeline.</p>



<p>They have argued in an open letter that this pipeline would pose immense threats to local communities, water supplies, and biodiversity in Uganda, Tanzania, Democratic Republic of Congo and Kenya.</p>



<p><strong>Read More: <a href="https://www.cnbcafrica.com/2021/oil-optimism-unwinding-markets-mad-dash-for-storage/">Oil optimism unwinding market’s mad dash for storage</a></strong></p>



<p>Standard Bank acknowledged receipt of the letter, saying it was following its own internal processes and had retained the services of an independent environmental and social advisor.</p>



<p>&#8220;As part of this process, the advisors will visit the project area and will issue a full environmental and social due diligence report, at which time Standard Bank Group will make a decision on the way forward,&#8221; it said in an emailed response.</p>



<p>Further to this, a preliminary findings report from the advisor was currently under review, the bank said, adding its new fossil fuels financing policy sets out stringent conditions for lending to fossil fuel projects.</p>



<p>&#8220;Among other conditions, project owners must commit to minimising or reducing greenhouse gas emissions,&#8221; it said.</p>



<p>French energy giant Total and its partner China National Offshore Oil Corporation plan to exploit oil reserves in Lake Albert in Uganda and construct a 1,443-km (896-mile) pipeline to neighbouring Tanzania for export.</p>



<p>Last month, Uganda said construction was expected to begin soon.</p>



<p>About two-thirds of the pipeline&#8217;s cost will be financed by debt, and a Ugandan unit of Standard Bank Group and Japan&#8217;s Sumitomo Mitsui Banking Corp are jointly helping to raise the funding. (Reporting by Nqobile Dludla; Editing by Bernadette Baum)</p>



<p>(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html</p>


UGANDA-TANZANIA-OIL

South Africa’s Standard Bank to assess ‘way forward’ on East Africa oil pipeline

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<p>RCL Foods has reported a 12 per cent climb in headline earnings per share year-on-year, for the six months ended December. Positive contributors were the Sugar, Baking and Vector Logistics segments. The chicken division’s performance was negatively impacted. CNBC Africa’s Zinathi Gquma spoke with Miles Dally, CEO at RCL Foods.</p>


RCL’s earnings up 12%

RCL’s earnings up 12%, driven by group’s sugar & baking businesses

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<p>Hyprop has reported a 65 per cent drop in headline earnings per share year-on-year, for the six months ended December.</p>


COVID-19: Hyprop sees 65% decline in headline earnings

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<p>Releasing its annual results today, Sea Harvest reported a 2 per cent rise in basic headline earnings per share. This is compared to the previous comparable period. While retail markets have benefited due to an increase in in-home consumption, foodservice markets have seen a slowdown. Felix Ratheb, CEO at Sea Harvest joins CNBC Africa for more.</p>


Sea Harvest CEO: Results show resilience in a difficult time

<p>JOHANNESBURG, March 1 (Reuters) &#8211; South African state-owned defence company Denel said on Monday that Chief Financial Officer Carmen le Grange had resigned, extending a recent string of resignations that have deepened a crisis at the struggling firm.</p>
<p>&#8220;The Board wishes to thank Ms le Grange for her valuable contributions during her tenure as financial director of Denel,&#8221; Denel said in an announcement on the Johannesburg Stock Exchange.</p>
<p/>
<p>(Reporting by Alexander Winning Editing by Nqobile Dludla)</p>
<p>(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html</p>
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South Africa’s Denel says CFO resigns, extending string of departures

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<p>According to the National Budget Framework Paper 2021/2022 recently approved by parliament, the country’s budget is projected at $12.38 billion, of which $5.66 billion will go to debt servicing.</p>


Uganda’s public debt projected to grow to nearly 50% by June

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<p>MSMEs are important players in the continent’s market economies. They represent more than 90 per cent of businesses on the continent and employ about 60 per cent of workers. Vikas Bali, CEO of Intellecap joins CNBC Africa on the impact the pandemic has had and the role they play in the economic rebound.</p>


Start-ups are important to Africa’s economic recovery. Here’s how govts can ensure that they thrive

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<p>Governor of the Central Bank of Nigeria, Godwin Emefiele says the Naira depreciated at the official window and now hovers around 410 naira per dollar.</p>


Naira depreciates to N410/$ at official window

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<p>Growth and economic recovery are the resounding words, used to describe the plans for the African economy.  But what are the realistic prospects for the country? Ridle Markus, Africa Strategist at ABSA CIB joins CNBC Africa for more.</p>


SSA economies to recover at slower rate than expected


<p>JOHANNESBURG, March 1 (Reuters) &#8211; South Africa&#8217;s diversified service provider Bidvest Group reported a 6.1% year-on-year rise in profit for the six months that ended Dec. 31, the company said on Monday.</p>



<p>Profit was lifted by the contribution from PHS, the UK-based hygiene company bought in December 2019. It was also boosted by higher demand for hygiene and facility services, DIY products and bulk commodity services.</p>





<p>Bidvest had embarked on a portfolio clean-up just before the pandemic struck Africa&#8217;s most industrialised economy &#8211; its primary market. It unbundled its food services business, booked impairment costs in an airline and disposed of its vehicle transport services.</p>



<p>Its normalised headline earnings per share (HEPS), which excludes some items such as acquisition costs and COVID-19 related expenses, was 651.6 cents for the six months, up 6.1% from the corresponding period a year ago.</p>



<p>HEPS is the main profit measure for South African companies.</p>



<p>Its revenue for the period grew by 3.4% to 44.4 billion rand ($2.95 billion), the company said.</p>



<p>Bidvest, which provides business-to-business solutions in cleaning, hygiene, travel, catering, freight, and logistics, declared an interim dividend of 290 cents per share, up 2.8%.</p>



<p>Bidvest said it has been able to bring most of its employees back to work after COVID-19 related lockdown measures were eased in South Africa, but estimates that the impact of the pandemic will continue.</p>



<p>&#8220;Looking ahead, it is likely that the economic downturn will persist with the pace of recovery remaining largely uncertain,&#8221; Mpumi Madisa, the company&#8217;s Chief executive said.</p>



<p>But with a leaner structure of the group and scalable operating model, it is &#8220;well placed for growth,&#8221; she said. ($1 = 15.0379 rand) (Reporting by Promit Mukherjee Editing by Keith Weir)</p>



<p>(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html</p>


Bidvest CEO discusses company earnings

South African service provider Bidvest reports 6% half-year profit rise


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-820x547.jpeg" alt="" class="wp-image-397873" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1302717103-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>SYDNEY, AUSTRALIA &#8211; FEBRUARY 18: In this photo illustration reports on Facebook&#8217;s news ban on Australian and International content on February 18, 2021 in Sydney, Australia. Facebook has banned publishers an users in Australia from posting it sharing news content as the Australian government prepares to pass laws that will require social media companies to pay news publishers for sharing using content on their platforms. (Photo by Brendon Thorne/Getty Images)</figcaption></figure>



<p>Australia has passed a new law that will require digital platforms like&nbsp;<a href="https://www.cnbc.com/quotes/FB" target="_blank" rel="noreferrer noopener">Facebook</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/GOOGL" target="_blank" rel="noreferrer noopener">Google</a>&nbsp;to pay local media outlets and publishers to link their content on news feeds or in search results.</p>



<p>The move was widely expected and comes&nbsp;<a href="https://www.cnbc.com/2021/02/23/facebook-to-restore-news-pages-for-australian-users-in-coming-days.html">days after the government&nbsp;</a>introduced some last-minute amendments to the proposed bill, known officially as the News Media and Digital Platforms Mandatory Bargaining Code.</p>



<p>“The Code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia,” Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement.</p>



<p>They added that the government was “pleased to see progress by both Google and more recently Facebook in reaching commercial arrangements with Australian news media businesses.”</p>



<p>The law will be reviewed by the Treasury within one year of its commencement, the officials said.</p>



<h2 class="wp-block-heading" id="h-what-did-facebook-and-google-do">What did Facebook and Google do?</h2>



<p>Both Facebook and Google have fought against the law since last year.</p>



<p>Essentially, Australia will become the first country where a government-appointed arbitrator can decide on the final price that either platform will have to pay Australian news publishers, provided a commercial deal cannot be reached independently.</p>



<p>The decision will come by a ruling in favor of either party — the digital platform or the publisher — with no room for a middle-ground agreement, according to experts.</p>



<p>In this week’s amendments, the government said the parties involved will get a two-month mediation period to broker deals before they are made to enter arbitration as a last resort.</p>



<p>Facebook announced Monday it will&nbsp;<a href="https://about.fb.com/news/2021/02/changes-to-sharing-and-viewing-news-on-facebook-in-australia/" target="_blank" rel="noreferrer noopener">restore news pages in Australia</a>, reversing an earlier decision to block access to news content on in Australia in retaliation against the then proposed bill.</p>



<p>Facebook’s vice president for global news partnerships,&nbsp;<a href="https://www.facebook.com/journalismproject/news-australia-decision" target="_blank" rel="noreferrer noopener">Campbell Brown, said Tuesday</a>&nbsp;the Australian government clarified that the tech company will retain the ability to decide if news appears on its platform so that it won’t automatically be subject to a forced negotiation.</p>



<p>Google initially threatened to pull its search function from Australia. In recent weeks, however, it struck a number of prominent commercial agreements with Australian publishers, including the&nbsp;<a href="https://www.cnbc.com/2021/02/17/google-and-news-corp-strike-deal-as-australia-pushes-platforms-to-pay-for-news.html">Murdoch family-owned media conglomerate NewsCorp</a>.</p>



<h2 class="wp-block-heading" id="h-claiming-victory">Claiming victory</h2>



<p>Before the law passed Parliament, both Australia’s competition watchdog and Facebook described this week’s moves&nbsp;<a href="https://www.cnbc.com/2021/02/24/australia-claims-a-win-over-facebook-in-news-battle.html">as a victory</a>.</p>



<p>Former U.K. Deputy Prime Minister Nick Clegg, who is now the vice president for global affairs at the social network, explained Facebook’s decision to restrict and then restore news in Australia in a lengthy blog post.</p>



<p>The final tweaks made to the bill was a face-saving exercise for both sides, but mainly for Facebook, according to Johan Lidberg, an associate professor of journalism at Australia’s Monash University.</p>



<p>“Having said that: the final call to apply the code or not rests with Josh Frydenberg, the Treasurer, not (Facebook),” Lidberg told CNBC by email. He explained that while Facebook could decide to drop the News Feed from Australia again in the future, it would reflect badly on the company’s brand.</p>



<p>“The mandatory arbitration clause is still there. Had it been dropped, the code would have become a paper tiger,” Lidberg said, adding that neither Facebook nor Google would have come to the bargaining table in good faith without the code in the background.</p>



<p>“The main game now is to keep very close tabs on how the deals are being made with media companies,” he said. “If the deals stay with the major four and local and regional media outlets are ignored, Frydenberg has the option to invoke the code and mandatory arbitration. This is what governments should do when market forces are as skewed as they are in this case.</p>



<p>Microsoft President Brad Smith weighed in on Australia’s decision, calling the new law “a big step forward.” He said in a tweet that it would “ensure publishers and journalists get paid a fairer share for their work.”</p>



<p>Microsoft&nbsp;<a href="https://www.cnbc.com/2021/02/03/microsoft-backs-australia-after-google-threatened-to-withdraw-search-.html">publicly backed the media code</a>&nbsp;this month after Google initially threatened to pull its Search function from the country. The company’s Bing search engine holds just 3.6% of market share in Australia, a fraction of Google’s 94.5% share, according to web analytics firm StatCounter.</p>



<p>Australia’s new law could set a precedent for how other countries regulate Big Tech. Countries like France have&nbsp;<a href="https://www.cnbc.com/2021/01/21/google-agrees-to-pay-french-publishers-for-news.html">undertaken some measures to make the tech firms pay for news</a>, while others like Canada and the U.K. are considering their next steps.</p>


Facebook Australia Restricts News Publishers And Users In Response To Proposed Media Bargaining Laws

Australia passes new media law that will require Google, Facebook to pay for news


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg" alt="" class="wp-image-396216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1230837650-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A GameStop Corp. store in Rome, Italy, on Thursday, Jan. 28, 2021. GameStop Corp. had the biggest day yet of its dizzying rally, adding more than $10 billion in market value, as bullish day traders kept the upper hand over short sellers. Photographer: Alessia Pierdomenico/Bloomberg via Getty Images</figcaption></figure>



<p>Shares of&nbsp;<a href="https://www.cnbc.com/quotes/GME" target="_blank" rel="noreferrer noopener">GameStop</a>&nbsp;surged more than 100% on Wednesday as investors poured into the brick-and-mortar retailer amid a C-suite shake-up.</p>



<p>Shares were halted with less than 30 minutes left in the trading day and the stock ended the day up 103.9%.<a href="https://www.cnbc.com/2021/02/24/gamestop-shares-soar-more-than-80percent-in-late-afternoon-trading.html#"></a></p>



<p><a href="https://www.cnbc.com/2021/02/24/gamestop-shares-soar-more-than-80percent-in-late-afternoon-trading.html#"></a></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="474" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739.png" alt="" class="wp-image-398243" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739.png 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/106845212-1614198477913-newplot_-_2021-02-24T152718739-300x192.png 300w" sizes="(max-width: 740px) 100vw, 740px" /></figure>



<p>GameStop announced Tuesday that its chief financial officer Jim Bell will resign on March 26.</p>



<p>“Mr. Bell’s resignation was not because of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including accounting principles and practices,” the company said in a filing with the Securities and Exchange Commission.</p>



<p>Sources familiar with the matter&nbsp;<a href="https://www.businessinsider.com/sources-gamestop-cfo-pushed-out-by-board-2021-2" target="_blank" rel="noreferrer noopener">told Business Insider</a>&nbsp;that Bell did not leave willingly, but was pushed out by&nbsp;Ryan Cohen, co-founder of&nbsp;<a href="https://www.cnbc.com/quotes/CHWY" target="_blank" rel="noreferrer noopener">Chewy</a>&nbsp;who made an investment in GameStop last year in an effort to help the company accelerate its push online.</p>



<p><a href="https://www.bloomberg.com/news/articles/2021-02-23/gamestop-seeks-new-finance-chief-following-bell-s-resignation?sref=i3mD6rA5" target="_blank" rel="noreferrer noopener">Bloomberg News reported on Tuesday evening</a>&nbsp;that GameStop’s board pushed Bell out in order to execute its turnaround more quickly, according to sources familiar with the matter.</p>



<p>Cohen appointment to the GameStop board helped drive the heavily shorted stock upward in January, which resulted in the epic short squeeze in GameStop that provoked retail trading mania and eventually attention from Congress.</p>



<p>“We acknowledge that leadership changes often follow activist settlements and Mr. Bell’s exit was mutual, non-immediate, and suggests no disagreements with company/board,” Jefferies equity analyst Stephanie Wissink told clients. “We believe Mr. Bell deserves recognition for a series of actions that protected GME equity during the late stages of the last hardware cycle, when sales were down sharply.”</p>



<p>Jefferies added that GameStop will likely look for a CFO replacement with a tech, compared to retail, background, as GameStop focuses on e-commerce growth.</p>



<p></p>


GameStop Corp. Stores As Stock Soars

GameStop shares soar more than 100% in late-afternoon trading


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-820x536.jpeg" alt="" class="wp-image-398225" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-820x536.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-300x196.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-768x502.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-1536x1003.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1137319123-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A worker scans the barcode of a stock item ready to pack and dispatch inside a Jumia Technologies AG distribution warehouse in Lagos, Nigeria, on Friday, April 12, 2019. Jumia shares soared by 75 percent on their first day of trading in New York, as investors rushed to buy into the companys plans to extend online shopping services across Africa. Photographer: George Osodi/Bloomberg via Getty Images</figcaption></figure>



<p>LAGOS, Feb 24 (Reuters) &#8211; African e-commerce giant Jumia said on Wednesday its cost cuts helped it reduce fourth quarter losses by 47% from a year ago as revenues continue to slide, showing that its path to profitability was on course.</p>



<p>Jumia, the first Africa-focused tech start-up to list on the New York Stock Exchange, is selling fewer expensive one-off products such as electronics and focusing on cheaper but frequently ordered items like beauty and cleaning supplies. It is also cutting fulfilment and advertising costs.</p>



<p>Revenue slid to 41.8 million euros in the fourth quarter, down from 49.3 million euros in the 2020 period. But Jumia reduced its adjusted loss in earnings before interest, taxes, depreciation and amortization (EBITDA) to 28.3 million euros.</p>



<p>Co-CEO and founder Jeremy Hodara said this proved the company&#8217;s strategy was paying off.</p>



<p>&#8220;We grew where we wanted to, and very efficiently,&#8221; Hodara said.</p>



<p>For the full year, revenue slid nearly 13%, to 139.6 million euros and adjusted loss EBITDA fell by 34.5% to 149.2 million euros.</p>



<p>Jumia outlined long-term hopes of expanding into new markets, including Ethiopia, the Democratic Republic of Congo and Angola, and said that payment platform JumiaPay and Jumia Logistics could be spun off.</p>



<p>But Hodara said no such plans would be considered until the company became profitable.</p>



<p>&#8220;We have to make sure that Jumia is a business that can make money,&#8221; Hodara said.</p>



<p>Jumia&#8217;s share price was steady around $48 at 1550 GMT, having gyrated dramatically since its listing at $14.50 on April 26 2019, valuing the firm at $1.1 billion. It hit a peak of $49.77 shortly after listing but later plunged close to $2 a share after a negative short seller report.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="670" height="450" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/chart.jpeg" alt="" class="wp-image-398226" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/chart.jpeg 670w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/chart-300x201.jpeg 300w" sizes="(max-width: 670px) 100vw, 670px" /></figure>



<p>In December 2020, the company raised €203 million in a primary offering.</p>



<p>Last year it also exited three countries and closed its travel unit to focus on profitability. ($1 = 0.8244 euros) (Reporting By Libby George;Editing by Elaine Hardcastle)</p>



<p>(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html</p>


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