5 Exciting Impact the Jumia IPO Will Have on Africa

Must Read

2020 Brand Africa 100: These are the 10 most admired brands in Africa

NIKE RETAINS #1 IN AFRICA FOR THIRD YEAR IN A ROW AFRICAN BRANDS DROP BY OVER 60% IN...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
5 Exciting Impact the Jumia IPO Will Have on Africa5 Exciting Impact the Jumia IPO Will Have on Africa

It is no longer news that Jumia has listed its shares on the New York Stock Exchange – the biggest stock exchange in the world.

The listing on the exchange generated diverse opinions and mixed reactions on social media and major news platforms.

Prominent among them is the question about the African identity of Jumia. The eCommerce company has explained the reasons it listed on the exchange and also cleared the air on its identity.

Beyond this, the Jumia IPO will no doubt benefit or have a positive impact on Africa, Africans and African businesses. We discuss some of the benefits of the IPO.

- Advertisement -

Change perception about doing business in Africa

Compared to other parts of the world, it is relatively cumbersome and tough to do business in Africa. Regardless, Jumia has weathered the storm, survived in over six years; it is present in 14 countries and has become the first African Tech company to list its shares on the New York Stock Exchange. The growth trajectory has been massive despite the many challenges of doing business on the continent. The World Bank Ease of Doing Business 2018 report backs this up with Nigeria ranked 146, Ghana – -114, Egypt – -120 and Uganda – -127. Meanwhile, Kenya, South Africa, Morocco and Mauritius scored 61, 82, 60, 20 respectively, thus performing reasonably well.

The IPO simply reveals that it is possible to do business in Africa despite the infrastructure deficits al and developmental shortcomings.

Reinforce the aspirations of young African entrepreneurs

There are millions of young entrepreneurs across Africa taking advantage of technology to tackle one social problem or the other. It is a topsy-turvy ride for many because being a young entrepreneur especially in Africa will drain you. So if you want to reinforce your aspiration as a young African entrepreneurs, look no further than Jumia. Before the eCommerce firm arrived at the IPO bus stop, it encountered a lot of challenges which it conquered and it is still conquering. You can also vanquish these challenges and become the ‘Jumia’ of your own sector.

Read Also:  Jumia Takes More Actions to Support the Fight Against COVID-19
- Advertisement -

Opportunity to raise capital by leveraging on the Jumia IPO

Capital is the live wire of any business. African founders and startup are in search of capital to fund their businesses. They are actually raising this capital.

For instance, the 2018 venture investment report by WeeTracker shows that African startups raised a total of $725.6 million across 458 deals. With the Jumia IPO, it will boost investor confidence thus encouraging them to put their money in African startups. Although African founders may not go the Jumia route, it sure serves something to ride on to pitch to potential investors about funding your idea or project.

Attract more investors to the continent

- Advertisement -

Venture capitalists and angel investors are always scouting for businesses to invest in. This year alone, African startups have raised millions of dollars and venture funds also worth millions of dollars are being established to find innovative solutions to some of Africa’s problem. The bar will be raised even higher with the Jumia IPO encouraging potential investors to invest in African startups because a well-run and managed company called Jumia has literarily survived Africa and eventually become the first startup to list its shares on the world’s biggest stock exchange.

Read Also:  Jumia Takes More Actions to Support the Fight Against COVID-19

A chance for Jumia to consolidate on its innovative products and services

Jumia is present in 14 African countries, has over 5,000 employees, and serves millions of customers across these markets. It is called the Alibaba of Africa. This IPO is like a pledge to Africa and Africans that Jumia is here to stay in the continent and will consolidate on its products and services. With the IPO comes more responsibility to the customers, investors and shareholders. And of course, Jumia is ready to serve and deliver to each one of them through its creative and innovative offering in travel, food, shopping, and payment among others.

- Advertisement -
5 Exciting Impact the Jumia IPO Will Have on Africa5 Exciting Impact the Jumia IPO Will Have on Africa

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

5 Exciting Impact the Jumia IPO Will Have on Africa5 Exciting Impact the Jumia IPO Will Have on Africa

Latest News

GeTS helps GEODIS to simplify cross-border trade declarations and Customs connectivity through CALISTA™

SINGAPORE - Media OutReach - 26 May 2020 - Global eTrade Services (GeTS), a global trade platform company, announced the onboarding of...

TAJBank Announces Issuance of N150 Billion Naira FGN Sukuk

TAJBank, Nigeria’s most innovative Non–Interest financial institution has announced a 150 million naira Sukuk Bond as appointed by the Federal Government of Nigeria. This will...

Global Finance names Ecobank Most Innovative Bank in Africa

The announcement was made at the eighth Global Finance annual awards, the Innovators 2020, honouring entities that regularly identify new paths and design new...

April 2020 Inflation Review – Inflation Accelerates Amid Pandemic Risk, Ramadan Arrival

In the latest report from the National Bureau of Statistics (NBS), the overall consumer price index - a measure of the average change in...

2020 Brand Africa 100: Africa’s Best Brands Highlights

AFRICAN BRANDS DROP TO ALL TIME LOW 13% NON-AFRICAN BRANDS ACCOUNT FOR 87% OF THE TOP 100 BRANDS IN AFRICA NIKE RETAINS #1...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -5 Exciting Impact the Jumia IPO Will Have on Africa5 Exciting Impact the Jumia IPO Will Have on Africa