(3 minutes read)
· Online business, E-commerce, is thriving across the world particularly in Africa, thanks to the pandemic
· Benefits are flowing from trading of all segments of commodities and services, such as foodstuff, clothing and all things essential
· That is going to stay according to the analysts since during the pandemic it was no longer an option but a necessity to opt for cashless transaction till the population is completely vaccinated
Online business, E-commerce, is thriving across the world particularly in Africa, thanks to the pandemic. Benefits are flowing from trading of all segments of commodities and services, such as foodstuff, clothing and all things essential. That is going to stay according to the analysts since during the pandemic it was no longer an option but a necessity to opt for cashless transactions till the population is completely vaccinated.
Jumia, Africa’s version of Amazon or China’s Alibaba has recorded a fourfold increase in sales of grocery items alone in 2020. Chinese suppliers are enabling the site to meet the daily needs of customers by offering a wide variety of products at affordable prices.
There is an organic linkage between Jumia and Chinese platforms since the technologies currently used by Jumia including its logistics base is similar to Chinese platforms., Jumia is on a mission to incorporate more of Chinese experiences for its expansion and smooth functioning.
Having operations in 14 African countries, Jumia has 6.8 million active users as of June 30, 2020.The E-commerce company has been set up in 2012. It is widely expected that the year 2021 would clock better prospects for Africa’s Alibaba despite incurring a loss of US$246 million in 2020.
Admittedly, the year initial phase of 2020 has been a year of woes for the company, which has made its debut on the New York Stock Exchange. It was forced to shut down its outlets in three African countries. Also, some of the shareholders including its promoters dumped the stakes. Pandemic has been a silver lining to the e-commerce company. Analysts are of the view that it might continue for the year 2021.
