• Latest
  • All
  • How To
jumia lays off employees

Jumia is Not An African Startup – The Continent is a Means to its End

April 15, 2019
ConnectedAfrica2025(Day4)-meta-foondamate

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025
google-veo-3

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

May 29, 2025
iOS 26

Apple Plans Big Rename for iOS and macOS at WWDC 2025

May 29, 2025
University student fined for defamatory Facebook posts

University Student Fined KES 7.5 Million for Defamatory Facebook Posts

May 29, 2025
DHgate Tablet Cases deals
AI Africa policies database

New Platform Brings All African AI Policies Under One Database

May 28, 2025
POATE 2025

Kenya’s Tourism Sector Grows as Travel Gets Easier Across East Africa

May 28, 2025
sodium-ion battery

Researchers Develop Sodium-Ion Battery That Charges to 80% in 6 Minutes

May 27, 2025
TV Gambling Ads

Regulator Fines Stations Using Religious Shows to Push Gambling

May 27, 2025
Connected Africa Summit 2025

Connected Africa 2025 Day 2: Focus on Digital Inclusion & Cybersecurity

May 27, 2025
whatsapp chatbots

iPad Users May Finally Get a Native WhatsApp App

May 28, 2025
Connected Africa Summit

Connected Africa Summit Calls for Unified Tech Vision

May 28, 2025
Kenya Safaricom share sale

Kenya Plans Mega Sale of Safaricom Shares to Raise Over a Billion Dollars

May 26, 2025
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
No Result
View All Result

Jumia is Not An African Startup – The Continent is a Means to its End

Kenn Abuya by Kenn Abuya
April 15, 2019
in Opinion
Reading Time: 4 mins read
251
6
jumia lays off employees

Late last week, ecommerce giant that operates primarily in Africa listed in the New York Stock Exchange (NYSE). Its shares started trading at about KES 1500. This development was not a surprise though as a month earlier, Jumia’s CEO Sacha Poignonnec had hinted the organization was planning to do so.

Of course, the public offering was covered extensively across several major publications across the globe for one key reason: this was the first non-African organization whose customers are in Africa that listed on the NYSE. People privy to the matter revealed that the firm offered 17.6% of its shares to the platform that is predicted to raise up to KES 21 billion for the ecommerce firm. According to TechCrunch, MasterCard Europe was the first major company to take advantage of the filing as it purchased KES 5 billion in shares.

However, this past weekend has been marked by several insights that refute the announcement that Jumia is Africa’s first startup considering the corporation’s headquarter is stationed in Europe. Africa is just where it operates, but its key business operations and important workforce are anything but African. The issue has been dismissed as PR as Jumia had fronted itself as an African firm when it became the first Africa-based startup to hit a $1 billion valuation. To this end, let’s examine if Jumia is really an African startup using the information we gathered over the weekend.

Is Jumia an African ecommerce business or does it use that moniker for PR reasons?

Well, to begin with, let’s get this out of the way: Jumia is not, and has never been an African startup. It was founded by two French nationals, Jeremy Hodara and Sacha Poignonnec, and is incorporated in Germany. The founders hold over 2 percent of the company’ shares.  However, some argue that Jumia’s original founders, Kahinde and Afaedor, who are African, qualify the firm’s Africa roots. Furthermore, Jumia reports that its market exclusivity makes it African; the lion’s share of its taxes are paid in the continent, and it employs an excess of 5000 people in Africa. However, issues come up when the composition of its top management and business operations that pose diversity deficits.

According to an SEC form published on QZ, Jumia is technically a German company.

“On Dec 7 and 18, 2018, our shareholders resolved upon the change of our legal form into a Germany stock corporation (Aktiengeselleschaft) and change our company name to Jumia Technologies Limited,” reads a statement from an application form.

Furthermore, Jumia often says it is active in Africa, particularly in six nations. This does not make it an African business, so to say. The approach is used by other global businesses that operate in multiple markets, some as their primary base. Being active is such markets does not effectively them their home ground.

Several high-profile startups that operate in the continent, or were founded by Africans have not become successful because they were inherently Africa. In most cases, those founded by African natives often see sharp management or ownership shifts during expansion; venture capitalists, who are often non-African see potential, and through business politics and so forth, bring in their own management team or buy out original founders or strengthen leadership. This is the case with startups such as Andela that operate as Africa businesses when they actually are not. The issue is echoed by a tweet sent earlier by Marek Zmyslowski.

Doesn't matter how many African Founders or employees Jumia has. It's IPO and good PR as fist "African tech startup on NYSE" will bring more money to the ecosystem than all the twitter rants of "truly African" fonders from last 7years together.

— Marek Zmyslowski (@marekchinedu) April 14, 2019

Further examination of the Jumia SEC file reveals additional information such as the technology centre of the firm.

“We centrally manage our operations, allowing for efficient decision making and planning. Our global technology centre in Porto, Portugal, provided the centralized, unified technology backbone for our operation in our six regions,” reads the file.

But why?

Does Jumia’s operations that insist on its African roots come out as protective measures for customers and shareholders? Well, if a business places its interests under the guise of protecting shareholders or customers, it will have plenty of work cut out for itself. The organization will constantly have to fight for customer trust, make things up and cover tracks.

Is the listing’s announcement as an African startup a little dishonest? Probably. If a startup attempts to cover up a shortcoming, it should remember that dishonesty can (and likely will owing to the outrage that has been poured on social media platform) be picked up by the consumers. It doesn’t matter even if it is trying to fix the discrepancy.

Does Jumia think it can get away with its misleading announcements? Well, with the continuous need to big up on its offerings in ecommerce and as Africa’s Amazon, there is a fine line between marketing Jumia’s strengths and lying about them. The key in avoiding these issues is simple: be honest within to consumers. It goes a long way, considering Jumia is a unicorn.

CEO Sacha Poignonnec Comments

In an interview conducted by CNBC, Jumia’s CEO Sacha had a lot to say.

“The uniqueness of Africa is for the sellers. It is very hard to distribute its products because of infrastructural inefficiencies. Our solution was to go online as Jumia,” Sacha tells CNBC.

Asked why Jumia has its engineering station in Portugal and leadership in Germany, the CEO had the following to say:

“We are completely an African company. We operate exclusively in Africa. We have more than 5000 employees in the continent.”

However, the 5000 workers mostly work in warehouses.

“In reality, in Africa, there is not enough development and developers.”

The last statement did not augur well with a lot of people, hence the outrage that has pushed Jumia to the number one spot in Twitter trending topics.

All the developers arguing for Jumia , The Jumia CEO went on TV and told the whole western world you are not good enough, affecting your global competitiveness

— ethelcofie (@ethelcofie) April 15, 2019

Debatable? Perhaps.

Jumia’s CEO Sacha Poignonnec says says Africa doesn’t have enough developers that’s why they don’t hire them locally. 🤔 pic.twitter.com/D2wU76lawt

— DOR (@Danfar_) April 14, 2019

And has Jumia really searched for African-based talent?

I actually won't rant about this b/c those of us who are devs & work with devs know better.

I just want to ask @sachapoignonnec if they even tried looking & then they realised they are not enough. Which would mean that they hired some just that the numbers didn't add up? LOL. https://t.co/oBPtkzKsRv

— Dr. C (@chao_mbogho) April 14, 2019

Conclusion

Not an African startup.

Tags: Jumia
SendShare147Tweet92
Kenn Abuya

Kenn Abuya

Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]

Related Posts

starllink outside region fee in Kenya

Kenyans Buying Starlink Kit From Outside Africa or Unauthorized Dealers Must Pay a Steep Activation Fee

August 25, 2024
Jumia Raises Funds to Accelerate Growth After Profit Improvement

Jumia Plans $100 Million Share Sale to Boost Growth and Profitability

August 9, 2024
Jumia Gambles on Nigeria to Boost Profitability

Jumia Gambles on Nigeria to Boost Profitability

May 21, 2024
Jumia and Starlink sales and distribution agreement

Jumia Becomes Authorized Dealer for Starlink Kits

October 2, 2023
Jumia believes rural e-commerce presents growth oppurtunities

Rural E-Commerce, the Next Phase of Jumia’s Growth

June 15, 2023
Jumia Kenya Picks Third CEO in Under Two Years

Jumia Kenya Picks Third CEO in Under Two Years

April 12, 2023

Latest

ConnectedAfrica2025(Day4)-meta-foondamate

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025
google-veo-3

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

May 29, 2025
iOS 26

Apple Plans Big Rename for iOS and macOS at WWDC 2025

May 29, 2025
University student fined for defamatory Facebook posts

University Student Fined KES 7.5 Million for Defamatory Facebook Posts

May 29, 2025
AI Africa policies database

New Platform Brings All African AI Policies Under One Database

May 28, 2025
POATE 2025

Kenya’s Tourism Sector Grows as Travel Gets Easier Across East Africa

May 28, 2025

Best devices

budget smartwatches 2025

Best Budget Smartwatches To Buy in Kenya 2025

February 13, 2025

Best Infinix Smartphones To Buy in Kenya 2024

February 13, 2025

Best Laptops for Battery Life in 2024

August 21, 2024

Best “Battery Warrior” Smartphones To Buy in 2024

August 22, 2024

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

May 29, 2025

Techweez is a fast growing influential source of technology news, reviews and analysis by leading tech geeks in the industry.

Follow Us

Editorials

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

Trump’s Tariffs Will Be the End of Affordable Tech

5 Ways to Prep Your Tech for Resale

The Weaponization of PDFs: How Cybercriminals Are Exploiting a Trusted Format

Introducing A Brainbox Quiz: Techweez’s Monthly Trivia Night!

More News

Researchers Develop Sodium-Ion Battery That Charges to 80% in 6 Minutes

Regulator Fines Stations Using Religious Shows to Push Gambling

Connected Africa 2025 Day 2: Focus on Digital Inclusion & Cybersecurity

iPad Users May Finally Get a Native WhatsApp App

Connected Africa Summit Calls for Unified Tech Vision

Kenya Plans Mega Sale of Safaricom Shares to Raise Over a Billion Dollars

  • Terms Of Use
  • Techweez Brand
  • Privacy & Policy
  • Contact Us

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!

Hey there! Just a heads-up: we're big fans of cookies - both the digital and edible kind! 🍪 We use our cookies and some from third parties to ensure your browsing experience on our site is smooth sailing and secure.

 

But wait, there's more! We also use cookies to gather stats and insights on how you navigate our site. It's like getting a behind-the-scenes peek at your digital adventures!

 

Don't worry, you're in control. You can adjust your cookie settings anytime to suit your preferences. Feeling curious? Dive into our Privacy Policy for all the juicy details. Happy browsing! 🚀

Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
No Result
View All Result
  • News
  • Reviews
  • Features
  • Editorial
  • Automotive
  • Entertainment

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.