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E-Business

Jumia Lays off 20% Staff as Part of Plans to Reduce Losses

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Francis Dufay
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Jumia, Africa’s leading e-tailer, has taken major steps to reduce losses and accelerating progress towards profitability, even if it means selling to fewer customers.

Francis Dufay

Jumia, which emphasises that cost reduction is a key priority of its strategy, undertook significant headcount reductions in the fourth quarter of 2022. This resulted in over 900 position terminations, the company says, corresponding to a 20 percent headcount reduction.

“We have streamlined our organizational structure, creating leaner, more effective teams, fully committed to the execution of our strategy,” Jumia explained in its latest results publication.

As part of the streamlining efforts, Jumia says it has also significantly reduced its presence in Dubai where certain management functions were located, reducing headcount by over 60 percent. It is understood that most of the remaining staff are being relocated to African offices, closer to consumers, sellers and operations.

“We expect these headcount reductions to allow us to save over 30 percent in monthly staff costs starting from March 2023, as compared to the October 2022 staff cost baseline,” the company estimates while also noting that an expense of USD 3.7 M was incurred in the restructuring process. Notwithstanding, Jumia insists it is working across the full cost structure to drive efficiencies.

These changes, coupled with efforts at prioritising fundamentals-led growth and gutting underperforming business units amongst other factors, did affect Jumia’s sales.

In the just-released fourth quarter and Full Year 2022 results, active customers amounted to 3.2 million for the three months ended December 31, down 15 percent year-over-year. The company says this was partly a reflection of a challenging macro environment across countries that is putting pressure on consumer spend while affecting sellers’ ability to secure supply.

Another factor cited as being responsible for the subdued showing is the deliberate action on Jumia’s side to reduce promotional/marketing intensity behind categories with more challenging unit economics, including a number of digital services on the JumiaPay app. “We remain disciplined around customer acquisition with a focus on profitability,” the e-tailer emphasised.

The combination of the above factors, macro environment and deliberate category rationalisation, also drove a decline in orders by 12 percent year-over-year, to 9.9 million in the fourth quarter of 2022, the company notes. Gross Merchandise Value (GMV) also slowed to USD 283.1 M, down 14 percent year-over-year and flat on a constant currency basis.

However, Francis Dufay (previously appointed Acting CEO and now appointed CEO of Jumia by the Supervisory Board) maintains it’s no cause for panic as one of Jumia’s immediate priorities is to significantly improve resource allocation, focusing on core areas with attractive returns on investments and clear ecosystem benefits.

“In the fourth quarter of 2022, we started implementing our strategy to accelerate our path to profitability and further strengthen our fundamentals. While the fourth quarter results only reflect a fraction of the actions we are taking, we are seeing early signs of success and remain focused on execution,” Dufay commented.

In its earlier Q3 2022 results released in the middle of November last year shortly after the exit of long-standing co-CEOs Sacha Poignonnec and Jeremy Hodara, Jumia announced its intention to cease a number of activities that do not yield attractive returns.

These business exits, the company now says, have largely been completed: Jumia Prime has been discontinued; the logistics-as-a-service offering is off in all but three countries; first-party grocery has been scaled back in four markets; food delivery discontinued in Egypt, Ghana, Senegal, and Tunisia.

Some of these changes appear to already be yielding fruit in some ways as operating loss in Q4 2022 was USD 49.8 M, down 41 percent year-over-year while gross profit accelerated to USD 41 M in the fourth quarter of 2022, up 22 percent year-over-year. Also, with its marketplace revenue hitting a record USD 41.2 M and fulfilment and other expenses continuing to fall, Jumia appears to be taking the slow and steady route; an increased focus on sustainability after years of unbridled growth-chasing spending.

Jumia, which has its African headquarters in Lagos, Nigeria, while serving 11 countries on the continent, has been the dominant e-tailer in these parts for more than a decade but continues to struggle to make the numbers work, failing to turn profitable and accumulating around USD 2 B in losses. Its share price has tumbled nearly 70 percent since its historic 2019 IPO as shareholders and analysts continue to express unease over the viability of its Amazon-style business model in challenging African markets.

The ongoing reset that is apparent at Jumia, thus, seems in order though it remains to be whether it would be enough to turn things around.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

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Nigerian Copyright Commission (NCC) has pledged to enforce its legal obligations to combat online intellectual property infringement and urged commercial music users to obtain proper licences from rights holders or their representatives.

NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

The Commission stated that this ensures creators are fairly compensated, supporting the music industry’s sustainable growth.

In a statement commemorating the 2025 World Intellectual Property Day, themed “IP and Music: Feel the Best of IP,” the NCC announced plans to enforce the Copyright Act 2022, which allows for the takedown of infringing materials and blocking of websites hosting illegal content.

Signed by Mrs Ijeoma Egbunike, director of Public Affairs, the statement outlined an aggressive anti-piracy campaign in collaboration with the private sector, targeting the online environment.

Egbunike affirmed the NCC’s commitment to establishing enforceable standards for transparency, digital audits, and real-time royalty reporting to protect creators’ rights. She stated, “The NCC will continue to champion policies that support the growth of the music industry, improve the livelihoods of Nigerian musicians, and foster a culture of creativity and respect for intellectual property.”

Despite the global success of Afrobeats and other Nigerian genres, the NCC noted that many musicians face low royalty returns due to rampant digital piracy.

To address this, the Commission revised its Collective Management Regulations to enhance transparency and accountability among Collective Management Organisations (CMOs).

The NCC emphasised that proper licensing is a legal obligation and vital for Nigeria’s creative economy, stating, “Music must feel the beat of intellectual property for the full potential of creativity to be realised.”

The Commission highlighted that creators’ livelihoods depend on fair royalty compensation.

Recent enforcement measures include the NCC’s designation by the Attorney-General of the Federation as an authority under the Proceeds of Crime (Recovery and Management) Act 2022.

This, combined with the Copyright Act 2022, empowers the NCC to order takedowns and block illegal music distribution websites.


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FG Warns Nigerians Against Growing Threat of Cyber Slavery in West Africa

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The Federal Government, has warned Nigerians against the growing threat of cyber slavery within the West African sub-region.

The Ministry of Foreign Affairs, in a statement issued in Abuja by Kimiebi Imomotimi Ebienfa, acting spokesperson, noted with grave concern the alarming rise of cyber slavery across parts of West Africa, targeting Nigerian citizens, particularly vulnerable youths.

The government said many young Nigerians, including underage teenagers, were lured out of the country under the false promise of lucrative employment opportunities abroad, particularly in crypto-related operations.

According to the government, “In reality, these individuals are trafficked into sophisticated scam operations and enslaved to work in criminal “call centres” — often referred to as “419 cyber-scam factories.” There, they are forced under coercive and inhumane conditions to send thousands of fraudulent emails, text messages, and calls aimed at defrauding victims worldwide.”

The government also noted with dismay, a recent incident where the Economic and Organised Crimes Office (EOCO) in Accra, Ghana, rescued and detained a group of Nigerians forced to engage in cybercrime activities under inhumane conditions.

“This incident highlights the severe exploitation and abuse associated with cybercrime operations. It also underscores the need for enhanced efforts to combat such multibillion-dollar criminal networks and mitigate the susceptibility of victims.

“The Ministry strongly warns all Nigerians, especially the youths and parents, to exercise the utmost caution when presented with job offers, particularly those promising easy money, overseas travel, or remote work involving cryptocurrencies.

“Nigerians are therefore advised to verify all employment offers through official channels and report suspicious cases to relevant authorities for necessary investigation and action to curtail the activities of the perpetrators.

“The Ministry wishes to assure the general public that, as a precautionary measure to address this unfortunate situation, the Federal Government is working closely with regional partners, law enforcement agencies, and international organizations to tackle this heinous crime, rescue victims, and bring perpetrators to justice.

“The Ministry remains committed to protecting Nigerian citizens at home and abroad and will continue to raise awareness about emerging threats to the welfare and dignity of our people,” the statement read.


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ALX Nigeria Launches 2025 Ventures Incubator, Premieres Pan-African “Do Hard Things” Finale

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L-r: ALX Ventures Country Entrepreneurship Development Manager, Joshua War Ebinabo; ALX Learning Associate, Ridwan Adepegba; ALX Country General Manager, Ruby Igwe; ALX Country Recruitment and Activation Specialist, Oluwatoni Ajewole; and ALX Learning Community Experience Specialist, Oluwapelumi Thomas at the Exclusive Mixer Party organised by ALX Nigeria in Lagos, recently.
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ALX Nigeria is once again proving that when African talent meets the right opportunity, magic happens. In a celebration of innovation, grit, and ambition, ALX officially launched its 2025 Ventures Incubator Cohort, an elite group of startup founders handpicked from across the country, while simultaneously premiering the grand finale of the pan-African “Do Hard Things Challenge” at its Lagos hub.

From tech founders solving community challenges to creatives turning ideas into global solutions, ALX is backing the bold and building the infrastructure to help them scale. The ALX Ventures Incubator is the next big leap for graduates of the Founder Academy, providing them with hands-on mentorship, investor access, and the resources to grow sustainable businesses that shape the future of the continent.

“The launch of the ALX Ventures Incubator is proof of our unwavering commitment to building the infrastructure for African innovation to thrive,” said Ruby Igwe, Country General Manager at ALX Nigeria. “We witnessed incredible potential at our Founder Academy, and this next step ensures that these promising startups receive the support they need to grow into high-impact ventures. It’s about translating potential into lasting impact.”

These new ventures are powered by the same spirit that drove the Do Hard Things Challenge—a bold initiative that saw ALX travel to eight African cities in search of the continent’s most inspiring entrepreneurs. The final stop? Mauritius, where top finalists pitched in a high-stakes finale, now screened live for the Lagos tech and media community.

The challenge took ALX across Lagos, Nairobi, Johannesburg, Kigali, Accra, Cairo, Casablanca, and Addis Ababa, shining a spotlight on resilience, creativity, and unstoppable drive.

“The ‘Do Hard Things Challenge’ embodies the spirit we cultivate at ALX: resilience, ambition, and the courage to tackle complex problems,” said Joshua Ebinabo, ALX Ventures Country Entrepreneurship Development Manager.

“Showcasing the finale from Mauritius here in Lagos connects our local innovators to the broader African story. It inspires our learners, reassures parents about the future of tech, and shows business leaders the investment-ready talent right here in our ecosystem.”

The event brought together founders, business leaders, creators, and media influencers—all gathered to witness what happens when African talent is seen, celebrated, and supported. The energy was electric, the vision was bold, and the mission was clear: empower Africa’s brightest minds to build global solutions from right here on the continent.

Whether you’re a startup founder looking to scale or a dreamer looking for your big break, ALX continues to be the launchpad for Africa’s digital and entrepreneurial revolution.

Learn more about ALX’s tech and business programmes at alxafrica.ng, and follow the movement on YouTube, TikTok, LinkedIn, and Instagram via @alxnigeria.


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