Page 34 - Abyssinia Business Network ABN August 2019

physically see and inspect a product ecommerce to help sellers grow e-commerce, e-health, transport,
they are buying before making a their businesses exponentially by logistics and agri-tech startups
purchase; it was more cultural and giving them access to millions of raising funding as investors saw
behavioural than instinctive. As consumers; to help consumers find opportunities in a large number of
a result, many thought the idea of any product they desire from a large areas (Source: CNBC Africa).
e-commerce might not hold waters pool of product assortment, which
in the continent because unlike the the company continues to expand
physical stores, it doesn’t provide to accommodate new consumer Gabriella Mulligan, co-founder of
an opportunity to feel and touch a demand; and to help individual Disrupt Africa, said: “2018 was an
product before it is purchased. Yet, and large logistics companies who incredible year for tech startups in
over 4 million Africans today enjoy are part of the Jumia logistics Africa. The continent’s entrepreneurs
the convenience of ecommerce, network grow their businesses and have grabbed the attention of
especially due to the provision of make more deliveries. In fact, in investors, accelerators, and media
Cash on Delivery as a mode of 2018 alone, through these logistic both locally and globally this year
payment, and return policies put in partners, Jumia made 14.6 million with their innovative solutions and
place by most platforms including deliveries across Africa. business models, and it’s great to be
Jumia.

But, the pie needs to grow. Less
than 1% of all retail transactions in
the entire continent is still a very
small pie. In the words of Jumia
co-CEOs Sacha Poignonnec and
Jeremy Hodara, the company will
continue to remain focused on its
core operations in driving consumer
adoption and engagement on
its marketplace, will continue
to invest in infrastructure such
as warehousing & logistics. It getting Image
will also continue to increase
the penetration of JumiaPay, its According to the African Tech able to report on such strong results
proprietary payment solution Startup Report published by Disrupt across our ecosystem.”
which is a one-stop solution for Africa, 210 African tech startups
any customer that buys on Jumia raised a total of US$334.52 million To conclude, Africa has more to
and enables him to pay with any of in funding in 2018 from foreign offer than the stereotype image that
the available payment methods in investors. The number of startups has been created over the years.
the respective markets. that raised funds grew by 32.1 per It is our responsibility first as
cent, and total funding jumped by an Africans, as stakeholders and even
210 African tech impressive 71.5 per cent. In terms of governments to believe and build on
startups raised a total sectors, the fintech space continued the achievements the continent has
of US$334.52 million in to dominate, remaining a clear made and to focus on the innumerable
favourite among investors and, at
opportunities it possesses. This way,
funding in 2018 from US$132.75 million, accounting for Africa will not only continue to
foreign investors. 39.7 per cent of total funds raised. attract both domestic and foreign
This was an increase on previous investments, but will also further
Jumia’s operations in Africa years, but nonetheless, there are encourage budding entrepreneurs
have proved sceptics wrong that strong signs of progress in other to trust in a system that aims to
there’s a viable opportunity for sectors, with multiple ed-tech, stimulate economic and job growth.

32 Abyssinia Business Nework ነሃሴ 2011 / August 2019