Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
      What South Africans searched for most in 2025

      What South Africans searched for most in 2025, according to Google

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Russell Southwood » E-commerce takes root in Nigeria

    E-commerce takes root in Nigeria

    By Russell Southwood24 October 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Russell-Southwood-180Early e-commerce market entrant in Nigeria, Naspers’s Kalahari.com, came and went, with many suggesting it was inevitable given that the number of online customers was tiny. But Rocket Internet start-up Jumia and Konga, backed by Sweden’s Kinevik and Naspers, are now estimated by those who have seen the figures to have more than 2m customers.

    Jumia Nigeria CEO Jérémy Doutté says originally the company wanted to push the Amazon concept into Africa. But it realised early on that things were going to be quite different. The logistics chain was poorly developed, there was little or no financing available, and electronic payments were all but impossible. The company had to rework the model.

    “We had to move to cash on delivery,” says Doutté. “But the big gap in the market was the lack of quality retailing at something less than premium prices. For the average shopper, finding something they wanted might involve a long journey, at the end of which there was no guarantee the product they wanted would be in stock.”

    Rukky Ladoja runs a Nigerian start-up that offers two fashion brands, Grey and Even Tribe. Even Tribe, a brand aimed at the midmarket, sells more or less completely through Jumia’s online channel. The numbers are not huge, but it has opened up a way for it to reach customers with clothes that reflect Nigerian body shapes and the colours demanded by consumers, leapfrogging the less than perfect retail sector in the process.

    Jumia’s customers buy just about anything, but one of the biggest categories on the website are the very items that have fuelled online shopping adoption: mobile phones.

    Impressively, Jumia will deliver anywhere in Nigeria, a vast country.

    “There are some challenges to reach everywhere but we have 16 logistics hubs and a small warehouse,” explains Doutté. Products are delivered to the northern city of Kano in two or three days.

    Sixty percent of Jumia’s orders come from Lagos. It wants to expand the volume of orders coming from elsewhere in Nigeria.

    Another challenge facing e-retailers in Nigeria is that few people have access to PCs, so websites have to be tailored for those with smartphones. It’s estimated that only 6% of people in northern Nigeria have access to a desktop or laptop PC.

    Jumia is pushing entry-level smartphones with its own application preloaded. It’s working with a Chinese manufacturer in Dubai called Innjoo to provide low-cost devices. “For US$75, you can get a very good phone with a 5-inch screen,” says Doutté. Until recently, orders placed through Jumia were split 50-50 between PCs and mobile phones. The latter have begun to creep up, and are now at 53%.

    Jérémy Doutté
    Jérémy Doutté

    Overall, Doutté plans to improve the customer experience with better trucks, better tracking and bigger warehouses. It already employs 1 200 staff directly and has a contracted sales staff of 800. It puts 800 motorcycles and trucks on the road.

    “Nigerians like to innovate and are really open-minded. E-commerce is an aspirational way of shopping,” he says.

    Doutté says there are three key things that investors or start-ups coming in from outside the continent should bear in mind.

    Firstly, it’s not cheap to operate in Africa. Everything is expensive in Lagos, from electricity to property rental.

    Secondly, the market is competitive. Konga is a strong competitor to Jumia, Doutté says. “Africans are amazing entrepreneurs. You need to be very smart and strong [to survive].”

    Lastly, it’s harder to innovate in Africa than it is elsewhere. There is a dearth of quality skills in particular. “They’re not available in large enough quantities for the size of the opportunity available.”

    Better that, though, than there being no opportunity.

    • Russell Southwood is head of Balancing Act Africa


    Jeremy Doutte Jumia Konga Naspers Rukky Ladoja Russell Southwood
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDA, ANC claim victory in SABC judgment
    Next Article Court orders Motsoeneng’s suspension

    Related Posts

    Takealot sees of competitive threats to deliver revenue surge

    Takealot sees off competitive threats to deliver revenue surge

    24 November 2025
    Prosus reports blowout results on iFood and OLX momentum

    Prosus reports blowout results on iFood and OLX momentum

    24 November 2025
    From Randburg to Paris: MultiChoice to delist as Canal+ takes full control

    From Randburg to Paris: MultiChoice to delist as Canal+ takes full control

    13 October 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

    BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}