(3 minutes read)
· The MTN Group of South Africa is now planning to exit from its US$ 243 million interest in Jumia Technologies AG to raise funds for retiring its debts and to enter new frontiers for expansion and consolidation.
· Importantly, Jumia’s shares have gained about 142% so far in 2020, recovering from its record lows in 2019
· Jumia is Africa’s largest online retailer, which has operations in 14 African countries.
The MTN Group of South Africa is now planning to exit from its US$ 243 million interest in Jumia Technologies AG to raise funds for retiring its debts and to enter new frontiers for expansion and
consolidation.
Importantly, Jumia’s shares have gained about 142% so far in 2020, recovering from its record lows in 2019. Jumia is Africa’s largest online retailer, which has operations in 14 African countries. Nigeria is an important hub of the retailer. Jumia Technologies is headquartered in Germany. It is run by its French founders-Sacha Poignonnec and Jeremy Hodara.
MTN has been trying to dispose of its non- core assets to retire its debts and make forays into newer markets. The company has also 29% share in HIS Towers, which is also being put on block. The company has already realized US$ 812 million in asset sales including selling its stakes in Ghana and Uganda to American Towers Inc. MTN is presently strategizing to enter the market in Ethiopia, which is one of the largest markets in Africa.
