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Jumia Maintains 12% Gross Profit Increase YoY in Q4 Report

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Africa’s leading ecommerce platform, Jumia has reported gross profit of €27.9 million, translating to a year-over-year increase of 12% in its 2020 Q4 and full year report released on Wednesday. The report by the pan African etailer showed that Gross Profit after Fulfillment Expense reached a record of €8.4m.

According to the company, business mix rebalancing, alongside enhanced promotional discipline, was a meaningful driver of economic improvement experienced throughout 2020, as the brand continues its progress towards profitability.

“While 2020 has been a challenging year operationally with COVID-19 related supply and logistics disruption, it has been a transformative one for our economic model, as we firmly put the business on track towards breakeven .

“We continued to make significant strides towards profitability during the fourth quarter of 2020. Gross Profit after Fulfillment expense reached a record €8.4 million during the quarter.

“In parallel, efficiencies across the full cost structure allowed us to decrease Fulfillment, Sales & Advertising and General & Administrative expenses (excluding share-based compensation) by 18%, 34% and 36% respectively, year-over-year.

“As a result, Adjusted EBITDA loss contracted by 47% year-over-year, reaching €28.3 million. In addition, we raised approximately €203 million in a primary offering in December 2020,” commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.

As contained in the report, Total Payment Volume on JumiaPay reached €59.3 million, increasing by 30% year-over-year. On-platform TPV penetration increased from 15.6% of GMV in the fourth quarter of 2019 to 25.7% of GMV in the fourth quarter of 2020.

JumiaPay Transactions increased by 10% from 2.4 million in the fourth quarter of 2019 to 2.7 million in the fourth quarter of 2020. Overall, the report showed that 33.1% of orders placed on the Jumia platform in the fourth quarter of 2020 were paid for using JumiaPay.

Jumia’s annual active consumers reached 6.8 million in the fourth quarter of 2020, up 12% year-over-year with continued growth in both new and returning customers. This cascaded to increased sales on the platform, as Jumia’s 2020 Black Friday sales records surpassed that of the previous year.

The platform recorded 1.5 billion page views, up 34% when compared to 2019, while video content registered almost 100 million views, 3 times higher compared to the 2019 event. The report showed that more than 41,500 sellers participated in the 2020 event, with the top 20 sellers registering 141% growth in items sold in the 2020 Black Fridays compared to the same period in 2019.

The brand also recorded impressive figures on platform monetization. As contained in the report, Jumia Logistic service which was opened to third parties in 2020, shipped almost half a million packages on behalf of more than 270 clients.

According to the report, Jumia is also making meaningful progress in the reduction of the overall rate of Cancellations, Failed Deliveries and Returns (CFDR). “The CFDR rate as a percentage of GMV improved from 30% in 2019 to 25% in 2020. The CFDR rate as a percentage of Orders improved from 22% in 2019 to 16% in 2020.

“The CFDR rate is typically lower when expressed as a percentage of Orders than GMV as higher average item value orders tend to show higher CFDR rates. As a result of the significant improvement in CFDR ratios, year-over-year trajectory of GMV and Orders after CFDR compares favorably vs pre CFDR.

“GMV was down 19% in 2020 while GMV after CFDR was down 12% and Orders increased by 5% while Orders after CFDR increased by 14% over the same period,” The report read.

The company also stated that General & Administrative expenses, excluding SBC, reached €21.8 million, down 36% on a year-over-year basis. This significant decrease was attributable to staff costs savings as a result of the portfolio optimization and headcount rationalization initiatives launched in the fourth quarter of 2019, alongside a decrease in professional fees, including legal expenses.

Jumia also reported operating loss of €40.0 million in the fourth quarter of 2020, while Adjusted EBITDA loss was €28.3 million, decreasing by 35% and 47% on a year-over-year basis respectively.


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E-Business

NDPC Secures NJI’s Support for Data Privacy Rights in Nigeria

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Dr. Vincent Olatunji, national commissioner and CEO, NDPC Hon. Justice Salisu Garba Abdullahi (Rtd) of NJI
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Nigeria Data Protection Commission (NDPC) has secured the support of the National Judicial Institute (NJI), in line with its objective of safeguarding the data privacy rights of Nigerians.

NDPC Secures NJI’s Support for Data Privacy Rights in Nigeria

Dr. Vincent Olatunji, national commissioner and CEO, NDPC Hon. Justice Salisu Garba Abdullahi (Rtd) of NJI

This was contained in a press statement signed by Mr Itunu Dosekun, head of Media, NDPC, and made available to journalists in Abuja, the nation’s capital.

NJI is a government institution responsible for the training of judicial officers in Nigeria, from magistrate courts to the Supreme Court of Nigeria.

During a courtesy visit by the Commission to NJI, Dr. Vincent Olatunji, national commissioner and CEO, NDPC, lauded the management of NJI under the leadership of Hon. Justice Salisu Garba Abdullahi (Rtd) for the milestones the Institute has achieved in human capital development, particularly for judicial officers and fellows of the Institute.

While commenting on the importance of the Nigeria Data Protection Act in the face of disruptive technologies, Dr Olatunji reiterated the need to collaborate with NJI in keeping judicial officers abreast of privacy jurisprudence.

He noted that decisions on the enjoyment of data privacy rights concerning one citizen have fundamental implications for all citizens.

“It is the digital age, and the protection of the privacy of all citizens worldwide is paramount.

“It is now the right of all citizens to have their privacy protected. This is why countries across the globe are putting adequate measures in place to ensure enforceable data protection rights, as well as establishing data protection authorities to enforce data protection laws,” Dr Olatunji stated.

In his response, Justice Abdullahi commended the NDPC, under Dr Olatunji’s leadership, for its significant achievements since its establishment.

He pledged to collaborate with the NDPC to raise awareness of data protection and privacy within the judiciary and accepted the NDPC’s proposal, anchored on capacity building for judges, NJI fellows, and employees.

“The issue of data protection is very important. It is new, and judges need to be trained. The first step we should take is to review the Act (NDP Act) that established the Commission. Additionally, there is a need for us to train our fellows on data protection.”

NJI and NDPC have put in place a technical working group that will draw up a work plan and coordinate the initiatives for capacity building. The working group is expected to report back within days to commence implementation.

 

 

 


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Flutterwave Partners NITDA to Strengthen Nigeria’s Digital Economy

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Olugbenga Agboola, founder and CEO of Flutterwave and Kashifu Abdullahi, director-general & CEO of NITDA
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Flutterwave, Africa’s payments technology company, said it has formed a strategic partnership with the National Information Technology Development Agency (NITDA), to drive digital transformation and ultimately economic growth across Nigeria.

Flutterwave Partners NITDA to Strengthen Nigeria’s Digital Economy

Olugbenga Agboola, founder and CEO of Flutterwave and Kashifu Abdullahi, director-general & CEO of NITDA

The collaboration aims to address the slow adoption of digital solutions among small and medium-sized enterprises (SMEs), a critical challenge that, when solved, can significantly boost the nation’s digital economy.

By promoting digital literacy, encouraging fintech innovation, and supporting key national initiatives such as the National Digital Economy Policy and Strategy (NDEPS), the partnership has a goal to accelerate Nigeria’s transition into a thriving digital ecosystem.

Despite the rapid evolution of digital payment systems, many SMEs in Nigeria still rely on traditional business models that limit their growth potential.

The inability to adopt digital payments, leverage e-commerce, and access secure financial solutions creates barriers to scaling and participating in the global economy.

Recognising this challenge, Flutterwave and NITDA were collaborating to bridge the digital divide and equip businesses with the right tools and expertise to embrace digital transformation.

Speaking on the partnership, Olugbenga Agboola, founder and CEO of Flutterwave, said, “many small businesses in Nigeria struggle to fully embrace digital solutions, and we believe that by providing seamless and secure payment technologies, we can empower them to scale with confidence.

“This partnership with NITDA reinforces our dedication to encouraging a truly inclusive digital economy, and we are proud to contribute to the outstanding work NITDA is doing to transform Nigeria’s digital landscape.”

Kashifu Abdullahi, director-general & CEO of NITDA, added, “Flutterwave’s reputation for fintech innovation aligns perfectly with our vision for a thriving digital economy. We recognize that slow digital adoption among SMEs has hindered economic growth, and through this collaboration, we aim to provide businesses with the necessary resources and infrastructure to transition into the digital age.”

The partnership represents a significant step toward Nigeria’s digital transformation, with Flutterwave and NITDA working hand in hand to create an environment where businesses can thrive through innovative financial solutions.

Flutterwave is a payments technology company that enables businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).

Flutterwave has processed over 890 million transactions in excess of $34 billion, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries.

 

 

 

 

 

 

 

 


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AfCFTA Digital Trade Protocol Targets 50% Growth by 2030

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Vice President, Kashim Shettima, has stated that the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol is set to grow intra-African trade from 18 per cent in 2022 to 50 per cent by 2030.

Commenting at the AfCFTA Digital Trade Workshop and Global Market, with the theme, “Unlocking State Exports Potential,” held in Abuja, Shettima who was represented by the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, highlights Nigeria’s role in digital commerce, citing the country’s 109 million internet users and expanding mobile economy as key enablers.

He emphasised that Nigeria’s advancements in mobile payments have revolutionized cross-border transactions, financial inclusion, and digital commerce, positioning the country as Africa’s digital trade hub.

“The internet economy is expected to contribute 5.2 per cent of Africa’s GDP this year, with the digital economy projected to grow to $180 billion, up from $115 billion in 2020,” he noted.

Shettima reaffirmed Nigeria’s commitment to modernising passport application systems and upgrading port infrastructure to streamline trade, reduce customs processing times, and strengthen the country’s role in handling West Africa’s cargo.

“We must move from policy discussions to implementing digitally enabled trade that fosters economic prosperity,” he urged.

The African Union (AU) recently recognised Nigeria as the Digital Trade Champion for Africa under the AfCFTA Digital Trade Protocol, a status confirmed during the 38th Ordinary Session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia.

Governor Uba Sani of Kaduna State, represented by Deputy Governor Dr. Hadiza Balarabe, warns that any nation failing to embrace digital trade risks being left behind. He commends the Tinubu administration for its achievements in the ICT sector.

“Digital trade platforms have broken traditional barriers, allowing businesses of all sizes to access regional and global markets more efficiently,” he says.


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