Jumia lists challenges to business growth in Africa

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By Cynthia Alo

The African E-commerce pioneer, Jumia Group, has said that distribution challenges will continue to hinder business growth, increase prices of goods, obstruct new market entrants and limit availability of goods to countries in Africa.

This situation become more serious, according to the Group, following the Covid-19 pandemic regulations which escalated distribution cost while forcing several business owners and key decision makers across the continent to reconsider their cost of doing business that often result in cutbacks.

In view of this development, Jumia Group restated their commitment to supporting the growth of businesses on the continent by launching Jumia Logistics for third party businesses and individuals.

The Group previously operated its logistics services exclusively for e-commerce and food vendors operating on its marketplace platform.

In a statement made available to the media, Logistics Director at Jumia Group, Mr. Obinna Ikpengwa, said, “Jumia’s logistics services are now open to third party businesses that wish to leverage its wide distribution network, innovative technology and expertise in warehousing, trucking, and last mile deliveries across eleven countries in Africa.

He explained, “Jumia logistics understands the critical role of Logistics and consumer satisfaction being the bane of its e-commerce business and extends this to its logistics clients and their customers in addition to helping businesses meet and deliver on the increasing need for convenience from consumers.

 One of several examples of Jumia logistics redefining customer convenience for its clients is the home delivery of “OTP secured” replacement ATM cards for banks customers, saving its banking clients an estimated 30percent of customer visits to branches.

Also, during the covid-19 pandemic, Jumia logistics stepped up effort to support businesses in the continent by partnering with businesses ranging from small businesses shipping a few packages every week to larger corporations to resolve their logistics and distribution challenges leveraging its huge scale, unparalleled expertise, and dispersing footprint in all states of the country with as low as N750 per package for selected cities.’’

He noted  that the logistics company is partnering with consumer goods brands to consolidate and deliver stock to their retailers across cities on-time,and at discounted logistics prices with less truck moves that are less Carbon dioxide (CO2) emission and allowing the retailers focus on serving their consumers.

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