AXIAN Telecom invests in Jumia, demonstrating commitment to Africa’s digital expansion.

AXIAN Telecom has made a significant strategic investment in Jumia Technologies AG, acquiring an 8.0% minority stake in the pan-African e-commerce platform. The announcement, disclosed through a filing with the U.S. Securities and Exchange Commission (SEC) on May 30, signals a vote of confidence in Africa’s digital economy and Jumia’s potential as a regional technology leader.

Hassan Jaber, the CEO of AXIAN Telecom, expressed the company’s support for Jumia’s strategic vision and emphasized their commitment to the growth and success of the platform. Jaber highlighted Jumia’s achievements in digital retail infrastructure, fintech through JumiaPay, and logistics capabilities as key strengths that position it to drive financial and economic inclusion in the communities it serves. The investment is a reflection of shared values and a dedication to scalable, technology-driven solutions tailored to Africa’s evolving consumer markets.

This move by AXIAN Telecom signifies a new phase for Jumia, coinciding with the departure of British investment firm Baillie Gifford, which sold its remaining 18 million shares, bringing an end to its six-year investment in the company often referred to as the “Amazon of Africa.” Baillie Gifford’s exit marks the continuation of a trend of early backers, including Rocket Internet and MTN Group, divesting their stakes in Jumia.

In contrast to the departure of these early investors, AXIAN Telecom’s entry represents a strategic shift towards Africa’s digital future. The telecom group, known for its Yas mobile and Mixx by Yas fintech brands, views Jumia as a valuable partner in expanding digital services across the continent. This investment aligns with the broader growth trajectory of Africa’s digital sector, as highlighted in a report by the International Finance Corporation (IFC) and Google, which projects that Africa’s digital economy could contribute $712 billion to the continent’s GDP by 2050, accounting for 8.5% of total GDP. Platforms like Jumia, with their integration of e-commerce, fintech, and logistics, are identified as key drivers of this projected growth, empowering small businesses, promoting financial inclusion, and extending digital access to underserved communities.

The partnership between AXIAN Telecom and Jumia comes at a crucial juncture for Africa’s digital landscape, emphasizing the role of technology and innovation in driving economic growth and development. As Africa embraces the opportunities presented by the digital economy, investments like this one serve as catalysts for progress, paving the way for greater connectivity, accessibility, and inclusivity across the continent’s diverse markets. Through collaborations between established telecom companies and digital platforms like Jumia, the foundations are laid for a more interconnected and prosperous future for Africa’s digital ecosystem.