Jumia

Africa Other consumer services

Jumia, part of the Africa Internet Group (AIG), is Africa’s leading internet company operating in more than 20 countries across the continent. It provides a comprehensive range of services – including ecommerce, food delivery, financial services, travel and classified adverts – to Africa’s consumers and small businesses.

Founded in Lagos in 2012 by Jeremy Hodara and Sacha Poignonnec, AIG connects more than 50,000 local and international companies with millions of African consumers. To support this, it has developed its own payments system and one of Africa’s largest logistics operations.

Jumia is listed among the Massachusetts Institute of Technology’s Smartest Companies 2017.

Our investment

In July 2016, CDC announced a $55 million equity investment in AIG.

Our capital injection is helping AIG improve its existing payment and logistics operations, boost local trade revenues and create additional jobs, as well as expand into new countries.

Our focus has been in supporting the business’s expansion into financial services, as well as its development of local manufacturing in key African markets.

Expected impact

With hardly any organised retail and little infrastructure, Jumia’s innovations are opening up new opportunities and setting new standards in African trade and ecommerce. Since its inception, Jumia has served more than 10 million consumers.

Jumia’s marketplace targets informal and small traders: 90 per cent sell less than $1,000 per month. Exchanges are underpinned by an extensive logistics network and convenient payment solutions that operates at an unprecedented scale across the continent. Consumers who create a Jumia wallet can access digital and financial services such as airtime recharge and utility payments.

In addition to direct job creation, Jumia operates a network of over 50,000 sales agents, known as the J-Force. Currently largely Nigeria-based, the J-Force is expanding into other countries, providing a route to engagement with the formal economy for many informal traders.

Jumia Group already has over 4,000 employees and it is expected that Jumia Services, the group's logistics business, will generate thousands of new delivery jobs by 2020.

Environmental and social aspects

We are supporting the company to develop an environmental and social management system and implement a code of conduct for its suppliers in line with the Ethical Trading Initiative's Base Code.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Other consumer services
Website:
https://group.jumia.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
April 2016
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$55m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Germany