Is this the turning point Jumia needs to reclaim its title as the “Amazon of Africa?” On Monday, Axian Telecom, a pan-African telecommunications provider, announced its acquisition of an eight percent stake in Jumia, signaling a strong vote of confidence in the e-commerce platform’s future. This move could provide Jumia with the necessary resources to navigate its current financial challenges and intensify competition in the African e-commerce market.
Axian’s investment bolsters Jumia’s digital infrastructure
Axian Telecom’s investment arrives at a pivotal moment for Jumia, which has faced financial headwinds and increasing competition. Jumia’s East African Regional CEO, Vinod Goel, highlighted ongoing innovations, including expanding product offerings from original and international brands and opening its logistics infrastructure to third parties. Axian’s support could accelerate these initiatives, strengthening Jumia’s infrastructure and service capabilities.
Jumia’s challenges and strategic shifts
Jumia, once celebrated as the first African tech company to list on the NYSE in 2019, has struggled with profitability amid losses, competition, and logistical hurdles. Baillie Gifford, previously Jumia’s largest institutional investor, recently sold its shares, coinciding with a report of declining revenues for the first quarter of the year.
Jumia has shifted its focus from aggressive customer acquisition to cost-cutting measures and customer retention to address these challenges. This strategy includes reducing marketing expenses and concentrating on high-potential markets.
Additionally, Jumia is increasing the number of China-based merchants on its platform to counter competition from e-commerce giants like Temu and Shein. In October 2024, Jumia exited the South African and Tunisian markets to focus on regions with stronger growth prospects.
Hassan Jaber’s vision for Jumia
Hassan Jaber, CEO of Axian Telecom, supported Jumia’s strategic vision. He believes that Jumia’s achievements in digital retail infrastructure and fintech, particularly through JumiaPay, position it to promote financial and economic inclusion
“We believe JUMIA’s achievements in digital retail infrastructure and fintech through JumiaPay, as well as its logistics strengths, place it in a position to promote financial and economic inclusion for the communities which it serves. This unique position makes Jumia a very attractive investment for Axian Telecom and one which is aligned with our core values,”.
Revitalizing e-commerce: How Axian’s stake can reshape Jumia’s trajectory
Axian Telecom’s investment is considered a vote of confidence in Jumia’s turnaround strategy and long-term potential. Axian’s commitment to supporting the development of Africa’s digital economy aligns with Jumia’s mission of delivering accessible and inclusive digital services.
Jumia’s path to profitability
Despite recent challenges, Jumia aims to achieve profitability by 2027. The company anticipates its loss before income tax to decrease from $50–55 million in 2025 to $25–$30 million in 2026. This projection is supported by growth in consumer business and efficiency improvements.
In the first quarter of 2025, Jumia faced a 26 percent year-on-year decline in revenue, totaling $36.3 million. However, there was a 21 percent increase in orders, driven by a focus on rural regions, where consumer sales increased by 10 percent. JumiaPay’s payment volume remained steady, accounting for 28 percent of sales, up from 25 percent the previous year.
Francis Dufay’s strategic measures
Since becoming CEO in November 2022, Francis Dufay has implemented cost-cutting measures to address Jumia’s financial losses. These measures include reducing the workforce by 20 percent (900 employees) and requiring top management to work from African locations to cut costs and stay connected to the markets. Dufay’s base compensation is approximately $350,000, lower than his predecessors’ $480,000 annual salary.
Dufay has emphasized the need to restore Jumia’s growth trajectory, stating, “What matters to me is that we get back on track on growth.”
Today, Jumia concentrates on core markets with higher growth prospects, including Nigeria, Kenya, Egypt, and Morocco. The company also doubles down on high-potential verticals such as everyday essentials and digital financial services via its JumiaPay platform.
Collaboration with Chinese suppliers
Jumia also seeks partnerships with Chinese suppliers to enhance its product offerings and affordability. Sam Chappatte, CEO of Jumia Kenya, noted that Chinese companies offer relevant products for African consumers due to their affordability and quality. Jumia aims to leverage its infrastructure and technology to enable Chinese manufacturers to reach consumers across Africa.
