The World Bank Group, through its private sector lending arm, the International Finance Corporation (IFC), has announced the investment of US$25 million in equity in Jumia Technologies AG (Jumia), Africa’s largest public e-commerce platform support its next phase of digital commerce expansion across its core African markets,
The investment is expected to enable approximately 60,000 local annual active sellers to participate more fully in the digital economy, support around 1,800 direct jobs, and create income-generating opportunities for more than 100,000 independent sales agents.
Speaking on the new investment deal, the CEO of Jumia, Francis Dufay, enthused: “The support of the World Bank Group is a milestone for Jumia and for African e-commerce more broadly. It validates both the discipline we have brought to our business in recent years and the tangible impact our platform has on small businesses, jobs, and consumers across our eight markets. With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs.”
In his remarks, the IFC Director for Equity, Funds, and Venture Capital, Farid Fezoua, clarified: “Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale. Our investment supports the company’s next phase of growth while contributing to create jobs, digitizing supply chains and distributions channels and mobilizing private investment.”
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Analysts believe that as digital commerce continues to grow in Sub-Saharan Africa (SSA), reliable access to online marketplaces, logistics networks, and digital payments are becoming increasingly important for entrepreneurs and small businesses seeking to expand beyond local markets.
They further noted that with the World Bank Group’s new equity investment in Jumia, the continent’s digital commerce infrastructure will help firms increase sales, improve productivity, create more jobs and connect consumers with a wider range of affordable goods and services.
The experts maintained that by expanding access to digital commerce tools and services, the investment would help businesses grow, improve price transparency, and contribute to more inclusive and resilient private sector development across Africa.
