The World Bank Group has announced a US$25 million (approximately Ksh3.2 billion) equity investment in pan-African e-commerce company Jumia Technologies AG.
In a statement dated Wednesday, August 12, the institution said the investment would help Jumia expand its digital marketplace and logistics infrastructure across its eight African markets.
The funding is expected to benefit approximately 60,000 active local sellers by connecting them to wider markets through Jumia’s online platform.
According to the World Bank Group, the investment will also support about 1,800 direct jobs and create income-generating opportunities for more than 100,000 independent sales agents.
The transaction will be undertaken through the International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm.
“Through Jumia, the investment is expected to enable approximately 60,000 local annual active sellers to participate more fully in the digital economy, support around 1,800 direct jobs, and create income-generating opportunities for more than 100,000 independent sales agents,” the statement read in part.
The World Bank noted that access to online marketplaces, logistics networks and digital payment systems had become increasingly important to small businesses seeking customers beyond their immediate locations.
It added that strengthening Africa’s digital commerce infrastructure could enable businesses to increase sales, improve productivity and offer consumers a broader range of affordable goods and services.
Jumia Chief Executive Officer Francis Dufay termed the investment a milestone for the company and Africa’s wider e-commerce industry.
He argued that the World Bank Group’s support validated the changes undertaken by the company in recent years as well as the impact of its platform on businesses, employment and consumers.
“With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs,” Dufay stated.
IFC Director for Equity, Funds and Venture Capital Farid Fezoua said the investment would support Jumia’s next phase of growth while helping digitise supply chains and attract additional private investment.
“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale,” Fezoua remarked.
The e-commerce company operates an integrated marketplace connecting sellers with consumers, a logistics network responsible for shipping and delivering packages, and payment gateways facilitating transactions in selected markets.
Jumia says its mission is to improve everyday life in Africa by offering convenient and affordable online services while helping businesses reach and serve more customers.
The World Bank investment comes as African businesses increasingly turn to digital platforms to overcome geographical barriers, manage distribution challenges and reach the continent’s growing population of online consumers.
