Why Jumia listed on New York Stock Exchange — Officials

Why Jumia listed on New York Stock Exchange — Officials

Thursday, April 18, 2019 5:59 pm

Stock Exchange

Some officials of Jumia, Africa’s leading online shopping company, on Thursday said that the organisation listed on the New York Stock Exchange to raise funds and drive innovation into Africa.

Addressing journalists in Lagos on the company’s recent milestone listing on the New York Stock Exchange (NYSE), the company it took the decision because the bourse was the world largest and more familiar with the e-commerce industry.

Mr Ernest Orumwense, Chief Financial Officer, Jumia Nigeria, said that by joining NYSE, Jumia wanted to show the digital innovation happening in Africa and other opportunities in terms of technology and e-commerce.

“We met a lot of investors and New York seemed the more natural place given the number of investors familiar with the business model.

“More investors have a marketplace and Tech focus in New York than in any other place. We made a logical choice,” Orumwense said.

According to him, Jumia has been private for seven years and has seen a lot of positive aspects to being public.

Orumwense added that raising the public profile was going to help bring more sellers to Jumia.

“Many sellers or partners are yet to know about us, and once they do, we hope they will be keen to work with us.

“We also hope this will help us build even more trust with consumers, in particular, those who are still not comfortable with e-commerce, may now see us as an established company.

“Also, we hope that the listing will help us with talent recruitment, retention, as we aim to attract more attention from top talent,“ he said.

Omolola Onasanya, Head Vendor Experience at Jumia, said that primary purpose of the listing was to raise funds.

She said that choosing the NYSE would help them grow as a company and consumers would also benefit from it.

Onasanya said that Africa was moving forward in terms of innovations, adding that listing on the NYSE would create the opportunity for Jumia to drive a lot of innovation into Africa.

Also, speaking, Olamide Amosun, Head of Engagement, Marketing, Jumia Nigeria, said that the company was African.

“Jumia operates in 14 African countries and we have invested heavily in tackling major infrastructure challenges including investing in logistics.

“Every impact we intend to make is majorly in Africa and we will never go anywhere else,“ Amosun said.

She also noted that although the company’s two Chief Executive Officers were French, Jumia’s management and staff in most countries were largely local, including country heads.

She added that Jumia has international Shareholders, just like many other companies.

“We are bringing investors to the African tech scene and building the economy and talent there.

“Though Jumia was initially funded by German investors in 2012, we got one of our main shareholders MTN in South Africa,” Amosun said.

Mrs Tolulope George-Yanwah, Country Manager, Jumia Services, said that the company was focused on providing trainings and development to local teams across Africa to enhance local talent and support.

She noted that Africa had super talented entrepreneurs and great developers, but poor infrastructure.

At the moment we have limited numbers of developers in Nigeria, Morrocco, Egypt and South Africa, soon enough we intend to recruit and train more in that regard. (NAN)

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