E-Business
Jumia’s Seed and Growth of Today’s Entrepreneurs
By Ayomide Oriade
Decades after the internet and its accompanying digital offerings redefined world information dissemination, business operation and transaction model, the comfort and ease of online shopping was on the exclusive list of Nigerians who have the privilege of visiting clime where Amazon, Ebay and the likes run their services. To other Nigerians, it was a figment of imagination.
Africa was a huge market up for the taking, but venturing into an uncharted territory always comes with severe threats and jeopardy.
So when Jumia came with the idea of replicating the online shopping experience on the continent of Africa in 2012, many saw it as a wild goose chase. Who dares run ecommerce services on a continent with less than 5% internet penetration? Jumia has since proven to be the answer.
Nine years on, the seed planted by Jumia has since given rise to a league of sophisticated African digital consumers, as well as a league of digital market entrepreneurs.
Since the launching of the online shopping experience, e-commerce is increasingly disrupting the retail industry in Sub-Saharan Africa. Konga, Payporte, Jiji, Kusnap and several other players, have since invested in the sector and are treating customers to e-tailing experience.
The United Nations Conference on Trade and Development (UNCTAD) reported that the number of online shoppers in Africa surged annually by 18% since 2014.
The pillars needed for e-commerce are also beginning to fall in place. The International Telecommunication Union statistics revealed that the share of the population using the Internet increased from 2.1% in 2005 to 24.4% in 2018.
The ripple impact of this on SMEs has been enormous. Today, thousands of businesses thrive on online exposure and sales. In its nine years in Nigeria, Jumia being at the forefront of the market, has connected over 11,000 SMEs and brands to millions of consumers in Nigeria.
The company’s sales campaigns have become a major window for brands and sellers to reach wider audiences and experience record sales figures. For instance, Black Friday powered by e-commerce brands in Nigeria has a track record of being an assembly of brands and products.
In 2018, there were more than 10,000 small businesses on the Jumia platform for Black Friday. In 2019 this figure increased to more than 12,000 with over 10 million products on sale. More than 41,500 sellers participated in the 2020 edition and there were also commensurate figures of sales partnering brands, as top 20 sellers registered 141% growth in items sold.
Among the greatest beneficiaries of e-commerce on the continent is the fashion industry. Due to the borderless nature of online marketplace, several fashion entrepreneurs are emerging in Nigeria and Africa by the day, and are leveraging e-commerce platforms to project their products to a global audience. A cursory look shows that the Nigerian fashion industry has produced notable entrepreneurs who have leveraged online sales platforms to grow multi-million Naira businesses in the last nine years.
Thanks to e-commerce, African fashion industry is beginning to optimize its potential. According to Euromonitor, Sub-Saharan Africa’s clothing and footwear market is worth $31bn.
“The growth has prompted the expansion of foreign and local brands into the African clothing market. Companies are fulfilling increasing orders from the African diaspora, particularly in Europe and America, while sales of Ankara gowns and African print dresses are also popular among non-African consumers. This has led to the creation of African-based e-fashion platforms,” the report said.
Just like in developed economies, e-commerce has rubbed off positively on logistics in Nigeria, creating a win-win situation for investors in the sector and businesses alike.
For instance, Jumia’s investment in the logistics sector has boosted hundreds of independent logistics companies by incorporating them into the Jumia logistics network.
The impact of this on SMEs is obvious. During the last Black Friday window, Jumia Logistics handled 4.8 million packages. To further extend its impact on SMEs, the company opened its logistics network to businesses outside its marketplace.
During the pilot conducted in 2020, Jumia shipped almost half a million packages on behalf of more than 270 clients including large corporations such as banks, FMCG companies, mobile network operators as well as SMEs from a broad range of industries.
E-commerce activities have also created thousands of direct and indirect employment opportunities. An instance of this is JForce initiative, a nationwide network of sales consultants with a profit-sharing scheme in which the agent, who is also a Jumia consumer, earns a certain percentage as commission for successful orders placed for self or for others on Jumia’s retail chains.
JForce has continued to serve as a source of income for thousands of Nigerian youth with basic online shopping skills, especially in rural communities. With over 5000 employees, Jumia and other ecommerce businesses are expected to generate over three million jobs in Africa by 2025.
Also key in its contribution is the huge empowerment tool e-commerce has become for the female gender. A report released by the PricewaterhouseCoopers (PwC) showed that women accounted for 41% ownership of micro businesses in Nigeria.
With apt knowledge of this crucial role of women in the SME subsector, Jumia has been empowering many women-owned businesses through various empowerment initiatives. The brand has been serving as a facilitator and enabler for women, especially fashion entrepreneurs. To achieve this, Jumia connects fashion entrepreneurs with acquisition managers who work with them to launch their fashion brands on Jumia platform, which is regarded as the foremost online fashion destination in Nigeria.
The Africa e-commerce unicorn is known for her partnership with Facebook for female owned SMEs by offering them a free master class on business growth accelerators, effective customer engagement strategy, and how to advertise their businesses and ultimately grow their businesses.
In addition to the brand’s initiative to bridge the unemployment gap, Jumia launched its ‘Women & Youth Empowerment’ pilot programme in Yaba, Lagos in June 2019. The programme is aimed at providing training and support to young women who are looking to expand their sources of income and also empower women through e-commerce.
Though e-commerce is still at its nascent stage in Nigeria and Africa with 1% penetration rate, it is already having a huge impact on entrepreneurs and businesses. It is thus safe to say that Nine years ago, Jumia planted the seed of growth for entrepreneurs and today, the seed is producing many crops.
Ayomide, a Public Relations Executive, writes from Lagos
It is holiday season in many parts of the world. These days though, going on holiday does not always mean turning your back on office life – hybrid work cuts both ways.
Today’s widespread connectivity—available at airports, train stations, restaurants, hotels, and most indoor public spaces—makes staying connected easier than ever, with free Wi-Fi in many locations and reliable 4G or 5G coverage elsewhere, helping to facilitate a seamless blend of work and leisure even while on holiday.
This increase in connectivity among travellers has not gone unnoticed by cyber criminals. Kaspersky experts analysed nearly 25,000 free Wi-Fi spots in Paris ahead of the Summer Olympic Games and Paralympic Games. The analysis revealed that almost 25% of these networks had weak or no encryption, making users vulnerable to personal and banking data theft.
Travellers often have their guard down. The unfamiliar surroundings of a new location or a different language can throw up a useful smokescreen for a cyberattack, meaning additional care needs to be taken when logging on. Fortunately, a few smart tools and habits can help you stay protected while enjoying the flexibility of remote work.
Use a VPN for secure connections
A VPN is one of the most effective ways to safeguard users’ online activity, especially when working from unfamiliar locations. By encrypting Internet traffic, a VPN ensures that hackers can’t intercept sensitive data like login credentials or financial details. This is particularly important when accessing work emails or company files on public Wi-Fi, where cybercriminals often lurk.
Switch to an eSIM for reliable, secure mobile data
Another useful digital tool that provides a seamless way to stay connected using local mobile networks with no physical SIM card required is the eSIM. This is a game-changer for international travellers who want to avoid sky-high roaming charges or the hassle of hunting down temporary SIM cards in foreign countries.
With an eSIM, a user can download a local data plan before you even arrive at your destination, ensuring instant connectivity the moment you land. This eliminates the need to rely on unsecured Wi-Fi hotspots, significantly reducing your exposure to cyber threats.
Plus, many eSIM providers allow you to manage multiple profiles on a single device, making it easy to switch between work and personal data plans without juggling multiple phones.
Services like Kaspersky eSIM Store enables users to purchase and activate data plans in advance, track usage and top up as needed, all from a single app.
Enable two-factor authentication (2FA)
When travelling, people often leave devices unattended. To protect against unwanted people logging in, travellers should ensure two-factor authentication (2FA) is enabled on all critical accounts and that passwords are used on all devices.
Final tips for a secure workation
Even with a VPN, eSIM and 2FA in place, your devices still need strong defenses against malware, phishing scams and ransomware. Cybercriminals often target remote workers who may let their guard down while travelling, making real-time protection essential.
Modern antivirus software does more than just scan for viruses, it actively blocks malicious downloads, warns you about phishing attempts and even secures your passwords and financial data.
For the most robust security, consider a solution like Kaspersky Premium, which combines antivirus protection, a VPN and password management into a single, easy-to-use package.
By combining a VPN, eSIM and strong antivirus, you can work from anywhere with confidence, whether you’re sending emails from a poolside or joining a video call from a festival tent.
E-Business
Zequence Digital Boss Calls for Strong IP Laws Enforcement, to Protect Nigeria’s Software Sector
Mr Adeoye Oludamilola, managing director, Zequence Digital, a digital agency, has said strong enforcement of Intellectual Property (IP) laws , protection of Nigeria’s software industry against piracy will encourage innovation and investment.
Adeoye told reporters lately in Lagos that software piracy and the unauthorised use of proprietary technology are widespread in the country.
According to report Intellectual Property (IP) laws in software refers to the legal rights that protect the creations of the mind used in software development.
These rights, which include copyrights, patents, trade secrets, and trademarks, grant developers exclusive control over their software and related assets, preventing unauthorised use or reproduction.
Adeoye said that many startups do not protect their innovations, due to a lack of knowledge and the cumbersome legal processes involved.
“IP registration and litigation are expensive and time-consuming, which further discourages developers from protecting their work,” Adeoye said.
He added that the lack of awareness among developers about their IP rights contributed to the problem.
To address these challenges, Adeoye stressed the need for the formation of an IP Protection Consortium, comprising tech firms, legal experts, and regulators, to advocate for stronger IP enforcement.
He also suggested collaborating with legal tech startups to create simplified platforms for fast-tracked IP registration.
The managing director further called for joint initiatives between legal bodies and tech communities to launch IP rights education campaigns.
This, he said, would equip developers with the knowledge they needed to protect their innovations and grow their businesses.
Adeoye emphasised the need for the government and stakeholders to create an ecosystem for development and inclusivity by proactively engaging with regulators.
According to him, this will help ensure that policies are created with the input of concerned agencies and industry experts.
PalmPay, a leading fintech platform and full-stack digital neobank for emerging markets, has partnered with Nigeria’s biggest Health Insurance Company, AXA Mansard Health a member of the globally trusted AXA Group, to provide millions of Nigerians with affordable, accessible digital health insurance.
This strategic partnership enables PalmPay users to seamlessly access a range of health insurance packages from AXA Mansard directly within the PalmPay app. With plans starting as low as N500 per month, users can now choose from flexible insurance options tailored to fit their everyday needs.
The plans are designed to meet a wide range of needs; for example, the AXA Digital Health plan offers access to telemedicine consultations with doctors, N5,000 worth of medications, and up to N40,000 in surgical coverage. Users can also opt for the AXA Mansard MicroHealth plan at N1,000 per month, which provides unlimited diagnostic tests and funeral benefits. Additionally, the AXA Mansard Accident plan, available for N500 monthly, offers comprehensive death cover for both accidental and non-accidental cases.
Speaking on the partnership, Habib Kowontan, Head of Wealth Product at PalmPay, said: “Insurance is a key pillar of financial security, yet millions of Nigerians remain underserved. Our partnership with AXA Mansard Health breaks down long-standing barriers by placing reliable and affordable insurance solutions right at our users’ fingertips.”
In her remarks, Jumoke Odunlami, Chief Distribution Officer, AXA Mansard Insurance said that the partnership with Palmpay presents the AXA with another opportunity to improve health and productivity of Nigerians. “Through partnerships like this, we are covering over 1.8 million Nigerians and ensuring that healthcare is accessible, available and affordable.
“So we are excited about joining forces with a brand like Palmpay to compliment the range of financial possibilities they offer their customers with health plans. It fits well with our mission and our purpose of acting for human progress by protecting what matters, and we are looking forward to doing even more with Palmpay”, she explained.
This partnership reflects PalmPay’s broader mission to create a more inclusive digital financial ecosystem, one that empowers users to not only manage their money efficiently, but also secure their future.
This partnership reflects PalmPay’s broader mission to create a more inclusive digital financial ecosystem, one that empowers users to not only manage their money efficiently, but also secure their future.
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