MTN Group said on Friday it had now exited its 18.9% stake in African online retailer Jumia, making R2.3-billion in net proceeds.
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Jumia Technologies is facing fresh competition from start-ups in the African e-commerce and logistics market after the Covid-19 pandemic increased demand for online deliveries.
Revenues for African e-commerce heavyweight Jumia slid by 10% in the second quarter, dashing hopes that lockdowns aimed at stemming the spread of the Covid-19 would lead to a flood of online orders.
MTN Group is planning to sell part or all of its R4.2-billion interest in Jumia Technologies as it looks to pay down debt and enter new markets, according to people familiar with the matter.
MTN Group is in advanced talks to sell stakes in tower assets in Ghana and Uganda worth as much as R8-billion as Africa’s largest wireless carrier looks to accelerate a broader disposal plan.
Early investors in Jumia Technologies will get their first chance to sell shares since the company went public in April, when the company’s 180-day lock-up period expires on Wednesday.
Faulty payment systems, patchy network coverage, parking woes and unreliable customers are just a day in the life of a typical delivery driver for Jumia Technologies in Lagos.
Jumia Technologies has identified cases of improper transactions at the Africa-focused online retailer’s Nigeria business that amounted to as much as 4% of first quarter sales.
Jumia Technologies’ plan to expand its online retail and trading platform in less developed parts of Africa has long had one significant challenge: a lack of formal addresses for deliveries.
Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, people familiar with the matter said.