Report: What Jumia’s latest results tell us about e-commerce in Africa

e-commerce 600x300It has often been said that e-commerce holds a unique value proposition for Africa due to the under-developed nature of formal trade. Online retail also offers better pricing to consumers and provides convenience as shoppers no longer have to sit through gridlocked traffic to reach markets or shopping malls. Online shopping may offer even greater value for those living outside of big cities, where choice is limited. With growing internet penetration through smartphones, it is conceivable that the industry could – to an extent – leapfrog traditional brick and mortar trade.

However, recent results from online retailer Jumia, one of the biggest on the continent, reveal that the industry is a tough nut to crack. For the first half of 2016, Jumia saw a significant decline in net revenue, with gross merchandise volume and the number of transactions also shrinking, albeit at a slower pace. On a positive note, total active customers increased significantly.

In its latest report, Maritz Africa Intelligence, takes a closer look at Jumia’s numbers and examines the size of the continent’s e-commerce market. The document can be bought here.