Jumia and Starlink have announced a new deal. The partnership between the African e-commerce platform and the broadband provider will see the sale of Starlink’s satellite terminals and related equipment in select African countries.
The sale of the terminals is set to begin in Nigeria and the other selected countries will follow. Notably, this deal makes Jumia the first African authorised dealer for Starlink kits in what is a sales and distribution agreement.
“We have seen Starlink do these types of deals in Southeast Asia and South America, and now Africa will also have the opportunity to access the fast-speed internet services,” he said. “The plan is to start selling through our sites and agents in Nigeria this month, and then Kenya.” Said Hisham El Gabry, Jumia’s Chief Commercial Officer.
Starlink is taking advantage of Jumia’s presence in the continent and the Jumia network of agents. The Jumia agents are located even in far-flung rural areas. This will help the satellite company reach clients in areas with no formal addressing.
Starlink offers broadband connection via satellite signals. It was launched in Kenya in July. Other countries that have Starlink access are Mauritius, Mozambique, Rwanda, Nigeria and Zambia. Nigeria was the first country on the continent to be served by the service.
So, it comes as no surprise, the Jumia and Starlink partnership is set to start in Nigeria with Kenya second.
Starlink Too Costly
While Jumia is likely to ease the barrier of access and delivery, there remains a bigger barrier. The cost of acquisition and the monthly subscription rates are quite high and may prove unaffordable to many Kenyans.
The Starlink kit includes the Starlink dish, mounting stand, cables, and a power source.
In Kenya, customers must pay KES 89,000 for the kit. This cost has not factored in the cost Kenyans have to pay for shipping and installation. Currently, this is charged at KES 3100 for shipping and installation.
It would be hoped that the partnership with Jumia will help reduce the shipping cost.
Monthly subscription fees then await those who are able to procure the kit. Currently, this is set at KES 6500. In contrast, many internet service providers in Kenya offer packages between KES 2000 to KES 5000.