Jumia E-Commerce Goes Public

Jumia E-Commerce Goes Public

July 12, 2019 0 By Bernardo Ryan



Africa's move into e-commerce is taking a big step forward with one online company Junia going public on the New York Stock Exchange while Julius shares have seen big gains and declines v/o a senior analyst jeffrey yong says market watchers think investors see an opportunity in african ecommerce despite challenges unique to the continent last month the africa focused ecommerce company jamia made a big dubuque on the new york stock exchange the shares soared above 49 dollars from the $14.50 start since then because of profit taking and a negative investor research report the stock has traded much lower to be his first quarter 2019 results released on May 13 showed about a 30 percent increase in operating losses but at the same time revenue doubled to be his performance is discussed via Skype from Kenya buy investment website Motley Fool dot-com research director William Mann with young companies like jamia is one of the reasons that they go public is that they do have a growth ramp or they believe that they have an opportunity and investors do as well man says relatively new companies typically run in the red for some time as they build consumer trust and gain market share to me as strategy to gain profitability as detailed by a Skype from New York by Motley Fool Wall Street reporter Jeremy Bowman they're bringing on third-party sellers onto their platform and they can collect commissions charge them for fulfillment packaging all these additional services that will eventually lead to profit for jamia for jamia and other companies doing e-commerce in Africa there are challenges they start with the logistics of getting goods from suppliers and then delivering them to buyers across a continent where many areas lack formal street addresses there are also payment problems because Africa traditionally is relied upon cash on delivery rather than ecommerce is global model of payment upon purchase but in one key area Africa has an advantage using mobile phones to transfer money allowing online shoppers to pay for purchases with their phones the importance of this portable payment system is underscored by a Skype from Victoria by Institute for Security Studies analyst Jackie Shadegg remember there have been remarkable innovations particularly in banking in Africa in East Africa we've seen ways in which mobile money has become the home however some African governments are taking measures that could hold back e-commerce for instance Uganda taxes mobile buddy transfers and the use of social media sites via Skype from Kampala jamia Uganda Chief Ron Guevara anything that to penalize Azure makes it more difficult to use technology to communicate to transact is regressive and we know a very many of our small businesses many who use social media not just for regular interactions but it's a business channel on still car Amara says for online retailing in Africa the potential is enormous Jamia z' goal is to be like Amazon in the United States in China's Alabama a one-stop shopping site offering everything from electronics to laundry soap to get there Jamia is addressing Africa's unique payment and logistical conditions while building customer and investor confidence Jeffrey young VOA news Washington