Jumia, Africa`s largest e-commerce operator, is grappling with insider fraud and legal threats, even though losses increased in the second quarter. While other investigations are still ongoing, Jumia has a lot to deal with if she wants to escape unscathed. Whether refuting Citron`s claims or reassuring its investors through other legal means, the company needs to take a step to bypass other African companies that pay the ultimate price. Please note that Jumia complies with the law and shares all relevant information about any supplier under judicial investigation in this regard. Customers believe and believe that they can always buy confidently in Jumia.com.ng, so the products offered for sale must be of high quality and absolutely authentic. The sale of products that do not meet this standard, including products that have been illegally reproduced, reproduced or manufactured, is strictly prohibited. In 2020, Rocket Internet and MTN Group sold shares in Jumia. [58] [59] In late 2015, Jumia`s founders appointed Juliet Anammah as CEO of Jumia Nigeria so they could focus on global control of the company. [15] Massimiliano Spalazzi took over Juliet as CEO in Nigeria in January 2020 and Juliet was appointed President of Jumia Nigeria and Head of Institutional Affairs for Africa.
[16] The commentary is prepared by the Center for Strategic and International Studies (CSIS), a private tax-exempt institution focused on international public policy issues. His research is impartial and not exclusive. CSIS does not take specific political positions. Accordingly, all views, positions and conclusions expressed in this publication should be understood solely as those of the author(s). The Kaselka Act states that Jumia General made false and misleading statements, with investors now complaining of losses in the stock market. Of the four allegations against the company, the most significant is that it significantly exaggerated its active clients and active traders, which WeeTracker says appears to be the reason for the impending harassment. Well, it is not common knowledge that MTN has been looking for an open door to leave Jumia since 2018. But it`s no longer a secret that the conglomerate has a special and sinister relationship with debt.COVID-19 has accelerated the growth of e-commerce and digital entrepreneurship in Africa and more women have embraced digital trade. [32] On the Jumia platform, more than a third of businesses in Côte d`Ivoire and more than half in Kenya and Nigeria are owned by women, according to IFC. [33] It wasn`t always dark and dark for the ancient African unicorn. Some things worked in Jumia`s favor when it raised $196 million through its IPO and closed 75% on the first day of trading. In addition, the company had more than 81,000 active merchants and more than 4 million active consumers in 2019. In March 2019, Jumia received investments of €50 million from Mastercard. [57] On 16. In March 2020, Jumia announced an important partnership with Reckitt Benckiser, a global manufacturer of healthcare products, to provide a steady supply of hygiene products at affordable prices and prevent the spread of the coronavirus. [34] [35] In November 2019, Jumia announced the cessation of its e-commerce activities in Cameroon, effective November 18, as the company concluded that its transaction portal was currently not suitable for the current environment in Cameroon. [23] As part of the portfolio optimization, Jumia subsequently ceased operations in Tanzania with effect from November 27, 2019. [24] While Jumia has provided many opportunities for customers and suppliers in Tanzania, the company said it needs to focus its resources on other markets that can bring the best value and help Jumia succeed.
The decision, the company said, would help it achieve more success in the future. [25] On December 9, 2019, Jumia suspended Food in Rwanda, becoming the 3rd country in two months as part of a continuous monitoring of the business environment and operating costs in the markets in which it operates. [26] However, Jumia has promised to continue doing business online in these countries on classifieds portals, previously called Jumia Deals. [27] In 2020, Jumia experienced a shift in its shopping habits in its markets in Africa, as more shoppers bought everyday products than electronics. When buying foods such as groceries, fashion and beauty products, Jumia`s total value of fast-turnover consumer goods sales increased by 13 percentage points last year, up from 44% in 2019, according to the Jumia Africa E-Commerce Index 2021. [30] The number of quarterly active consumers increased by 25% to 3.4 million, while total revenues for the quarter reached $57.3 million, an increase of 42.5%. Cumulatively, irregular orders between the last quarter of 2018 and the first two quarters of 2019 generated a gross merchandise value of about 16 million euros ($17.5 million) in gross merchandise volume (GMV), the report said. GMV is a metric used by e-commerce businesses to highlight the total value of products sold on the site. With the company`s debt rising from $3.94 billion to $4.39 billion, the South African company apparently isn`t waiting to confirm whether Jumia`s rumors are true before it begins its withdrawal. Bloomberg reported that MTN, in its desperation to acquire funds, planned to sell all of its Jumia shares through the IPO. The result? Ninety-five percent of national listings on the Uganda Stock Exchange (USE) are government divestments. Other exchanges are dominated by large companies such as Dangote Group, which accounts for a third of the Nigerian market.
These large companies also pose problems: family-owned conglomerates or large multinationals can circumvent regulation by listing their subsidiaries on local stock exchanges or by benefiting from their complex and cross-border corporate structures at the expense of minority shareholders. In August 2021, Jumia partnered with modern and eco-friendly mobility company Solar Taxi to provide Ghanaian consumers with affordable and environmentally friendly delivery of online orders, as the company aims to achieve an entirely green footprint through the use of clean and sustainable renewable energy. [44] © 2019 from the Center for Strategic and International Studies. All rights reserved. I would never invest a million years in $JMIA. It`s a terribly run business. I know them very well. Check the hashtag #JumiaIsNotAfrican. They will see what their customers think of them. This Nigerian princely narrative needs to be changed. There are no Nigerians involved in Jumia #JumiaIsNotAfrican t.co/KRTKOFuZdk RMD is threatening to take legal action against Jumia for unauthorized use of its photo: Nigerian actor Richard Mofe-. t.co/Lge4F0z9Fg For those who have argued that Jumia is not African, this is not the best time to distance themselves from the company.
Since the company deals with many people right now, the idea of a false identity has resurfaced as a point that can be used to pursue previous claims. Click here to learn more about prohibited and restricted marks. In December 2021, Jumia launched a payment service provider (PSP), JumiaPay in Egypt following regulatory approval. [45] The PSP was part of Jumia`s strategic partnership with the National Bank of Egypt to facilitate online payments and the distribution of various digital and financial services. [46] Jumia`s reputation depends on that of our suppliers, so a listed item that violates trust poses risks to our entire market. Therefore, as of June 15, 2017, Jumia will apply the following procedures: Jumia has a logistics network that includes among its physical locations more than 20 warehouses and more than 1,300 drop-off and pick-up points located in the Jumia market in the 11 countries, including remote areas. [42] In 2020, Jumia announced that its logistics service is now available to third parties who wish to use its network, technology and know-how for last-mile deliveries in 11 African countries. [43] Jumia takes the authenticity of products very seriously. It is the responsibility of each seller to only find and sell authentic products. The sale of counterfeit or counterfeit products is a breach of customer trust. An aggrieved customer can and will post a negative product review and rate your product wrong. This jeopardizes the reputation of your store and Jumia.
Selling counterfeit items exposes you to potential intellectual property lawsuits, and any trademark dispute can be resolved in court. Jumia has now confirmed that “several class action lawsuits” have been filed against the company and its officers in New York for “alleged misrepresentation and omissions” in its IPO prospectus. He also noted that the prosecution “is still in its preliminary stages.” It`s no secret that Jumia has problems. Jumia was listed in New York, not Nairobi or Lagos, as it was by far the most sensible business decision, given the continent`s weak capital markets and stock exchanges.
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