Tag: African markets

Jumia Nigeria Records Strong Q1 2026 Growth as Technology-Led Strategy Drives Market Expansion

Jumia has announced strong first-quarter 2026 performance results, with Nigeria emerging as one of the company’s standout growth markets across Africa, reinforcing the country’s position as a critical driver of the company’s long-term expansion strategy.

According to the company’s Q1 2026 financial results released May 7th, 2026, Nigeria recorded a 42% year-on-year increase in physical goods Gross Merchandise Value (GMV), making it one of Jumia’s strongest-performing markets during the period.

Commenting on the performance, Temidayo Ojo, CEO of Jumia Nigeria, said, “Nigeria continues to demonstrate the strength and resilience of its digital commerce ecosystem. The growth we recorded in Q1 reflects increasing consumer confidence, stronger engagement across our platform, and our continued investment in technology, logistics, and customer experience.”

“We are seeing more Nigerians embrace e-commerce not just for convenience, but as a trusted part of everyday life. Our focus remains on building a platform that is more accessible, more reliable, and more relevant to the evolving needs of Nigerian consumers and sellers,” Ojo further mentioned.

The company attributed its broader growth trajectory to disciplined execution, operational efficiency, and increased deployment of technology and AI-driven systems across its operations. According to the report, Jumia leveraged artificial intelligence and automation across operations, finance, customer support, cybersecurity, seller management, logistics, and technology teams to improve service quality while reducing operational costs company-wide.

The company also noted that technology and content expenses declined year-on-year due to ongoing headcount optimisation and savings from renegotiated technology contracts, while operational leverage continued to improve. They further highlighted increased use of AI tools among its technology teams, alongside automation in call centres and operational systems, as part of efforts to scale sustainably while improving efficiency across African markets.

Across the platform, Jumia reported significant gains in customer retention and marketplace engagement. Quarterly Active Customers reached 2.5 million, while physical goods orders climbed to 5.9 million in Q1 2026.

The company also expanded usage beyond major urban centres, with 62% of total orders now coming from secondary cities and upcountry regions, emphasising the growing reach of digital commerce across Africa.

Despite global economic pressures, including rising memory chip and CPU prices and supply chain disruptions linked to ongoing Middle East conflicts, the company reaffirmed its path toward profitability. Jumia stated that it remains on track to achieve Adjusted EBITDA breakeven and positive cash flow in Q4 2026, with full-year profitability targeted for 2027.

May 15, 2026
AVCA spotlights the African diaspora, practical pathways to exits and private credit as multipliers shaping African growth

The African Private Capital Association hosted its sixth Venture Capital (VC) Summit on Monday, kicking off the industry association’s 22nd Annual Conference in Nairobi from 27 – 30 April. AVCA’s annual global gathering brings founders, venture capital investors, corporate venture arms, philanthropic foundations and policymakers together to deepen Africa’s entrepreneurial landscape.

Abi Mustapha-Maduakor, Chief Executive Officer, AVCA, opened the summit by commending the VC industry’s fortitude and ability to execute during tough economic cycles. Abi acknowledged that despite a challenging fundraising environment, “venture-backed exits reached a record high in 2025,” highlighting a pivotal shift in the ecosystem: “The centre of gravity is moving toward local capital, local expertise, and local conviction.”

A defining moment of the day was the keynote fireside chat between Boris Kodjoe, Actor, Director, Producer, Investor and Philanthropist, and AVCA CEO Abi Mustapha Maduakor. Boris underscored the role of storytelling in shaping how markets are understood and how capital flows, stating that: “Storytelling is economic architecture – those who control the narrative shape valuation, and perception is what drives investment.”

The summit then turned to the structural questions underpinning venture capital in Africa. During the panel entitled From Hype to Fundamentals: Resetting the African VC Story, panellists, including Tidjane Dème, General Partner, Partech Partners; Sapna Shah, Partner, Novastar Ventures; Fatoumata Bâ, Founder and Executive Chair, Janngo Capital, and Mohamed Eissa, Global Head, Venture Capital and Direct Investments, International Finance Corporation (IFC) exchanged views on whether imported VC models ever fully fit the continent’s realities, reflecting candidly on where expectations diverged from outcomes and assessing what has and has not worked in the market.

Outlining the roadmap for onward growth, veteran VC investor Tidjane Dème, General Partner at Partech Partners, quoted Ido Sum, entrepreneur and Partner at TLcom Capital, saying: “African venture capital isn’t broken – it’s just young.” He added that: “A decade ago, we saw around 30 deals a year; today, that number exceeds 500. We’re still building, and we can’t compare ourselves to a 50-year-old U.S ecosystem just yet. We have time.”

Mohamed Eissa, Global Head, Venture Capital and Direct Investments, International Finance Corporation (IFC), expressed that: “This ecosystem is still very young, but it has grown from about $400 million of annual investment to roughly $4 billion in just over a decade, clear evidence that the capital base is expanding, even if it’s still not enough.”

The summit featured interactive sessions on pathways to exits, with collaboration identified as key to improving liquidity. Industry leaders, including Patricia Rinke, Investment Director, AfricInvest; Ibrahim Sagna, Executive Chairman, Silverbacks Holdings; and Andreata Muforo, Partner, TLcom Capital, outlined the need to look beyond Initial Public Offerings (IPOs) and assessed the role of strategic acquisitions and Mergers and Acquisitions (M&A) as deliberate liquidity strategies.

Building on the sentiments of Boris Kodjoe, who outlined the importance of African diaspora investors participating in the continent’s growth story, Alex Rumanyika, Head, Strategy and Performance, at the National Social Security Fund (NSSF) in Uganda, issued a call to action to African institutional investors to play a more active role in scaling African businesses,

stating: “If we don’t get into this space, it is going to be an existential threat for NSSF and many pension funds. We need to diversify away from overexposure to government assets and into the sectors where jobs are actually being created.”

The VC conference was followed by a dedicated Private Credit Summit introducing leading investors who are expanding the region’s private capital ecosystem with new financing tools, reshaping how the continent competes for global capital. Nathaniel Micklem, Co-Head, Emerging Market Alternative Credit, Ninety One, said, “Private credit is one of the most exciting parts of our asset management platform – but it cannot be built using imported public equity or private-equity instincts. What works in Africa is deploying into stronger, more resilient businesses and sectors, not earlier-stage ventures or smaller SME exposures.”

Walid Cherif, Co-Founder and Managing Partner, BluePeak Private Capital, concluded by saying: “Private credit is especially suited to African markets because companies continue to perform even when exits are hard to achieve. It is an easier conversation today than it was years ago.” He expressed that underwriting must remain thoughtful and selective as managers need to resist pressure to move too fast, because credibility with Limited Partners (LPs) comes from having executed the strategy over time and returned capital, not simply from a compelling market story.

May 4, 2026
Onafriq and Visa Partner to Launch Visa Pay, Unlocking Interoperability Between Card and Mobile Money in the DRC

Onafriq, Africa’s largest digital payments network, today announced a strategic partnership with Visa to launch Visa Pay, a cloud-native Payments-as-a-Service platform designed to expand digital financial access across the Democratic Republic of Congo (DRC).

Through this partnership, consumers in the DRC will be able to conveniently fund their Visa Pay wallets directly from mobile money channels, unlocking seamless access to everyday digital and e-commerce payments. Powered by Onafriq’s APIs, the collaboration enables mobile money collections and disbursements from M-Pesa, Airtel Money and Orange Money wallets, effectively bridging Visa’s card network with millions of mobile money wallets across the country.

“Our collaboration with Onafriq represents our ambition to accelerate financial inclusion in the DRC,” said Sophie Kafuti, General Manager of Visa in the DRC. “By connecting Visa Pay to existing mobile money infrastructure, we’re not just adding convenience—we’re creating the interoperability foundation that will fuel digital commerce adoption across the country.

The timing aligns with significant market growth. GSMA data projects the DRC’s mobile payments industry will reach $3.85 billion in transaction value this year, representing a 19% compound annual growth rate. This market encompasses retail payments, e-commerce, government services, bill payments, payroll disbursements, and business collections nationwide.

“Onafriq has connected Congolese consumers to Africa and the world for years, operating as the trusted infrastructure in the background,” said Christian Bwakira, Chief Commercial Officer of Onafriq. “This partnership demonstrates how combining Visa’s global network reach with Onafriq’s deep on-ground presence creates unprecedented possibilities for innovation and financial inclusion across Africa. When you unite world-class global capabilities with trusted local networks, you unlock transformative opportunities for both partners and the millions of consumers we serve.”

Beyond DRC, the partnership opens the door for Visa Pay to expand into other African markets, where mobile money adoption is already high and demand for interoperable, digital-first solutions is accelerating.

September 15, 2025
AfDB and Aerosense Inc sign Letter of Intent (LOI) to advance cooperation and projects in drone technology in Africa

The African Development Bank and Aerosense Inc., a leading Japanese company in drone manufacturing, have signed an agreement to advance cooperation and projects in drone technology in Africa.

Representatives of both institutions signed a Letter of Intent on Thursday 21 August, on the sidelines of the ninth Tokyo International Conference on African Development in Yokohama, Japan. The agreement was signed by Mr. Solomon Quaynor, Vice President for Private Sector, Infrastructure & Industrialization, AfDB and Mr. Kohtaro Sabe, President & CEO, Aerosense Inc.

The agreement formalizes a relationship of mutual co-operation, assistance, information and knowledge sharing between the two institutions, exploring co-financing and deal opportunities and appropriate coordination of actions between them and their respective teams, specifically concerning the promotion of sustainable infrastructure solutions in Africa.

Aerosense Inc.’s drone solution was selected through a call for proposals under the African Development Bank’s Sustainable Road Maintenance Program for Africa (SRMPA) in June 2025.

Under the agreement, the Bank will facilitate coordination with the public sector, lead awareness-raising campaigns, support capacity building for local partners, and explore possible debt (and/or equity) financing support for projects related to the deployment of drone solutions.

Aerosense Inc. on its part, would conduct demand studies for drone solution in target African markets, perform technical feasibility studies for the application of drone solution, considering local geographical conditions, and explore possible deployment opportunities upon positive feasibility study results.

“The program is a bold response to Africa’s growing infrastructure challenges. By partnering with Aerosense, we will not only promote efficient road management but also consider promoting other unique solutions such as disaster management, river/flooding control, agricultural sensing, and medical equipment delivery,” Quaynor said.

Mr. Sabe stated, “It is a great honour to serve the people in Africa with our Japanese technology for enhancing their quality of life. We are looking forward to collaborating with AfDB to build a better future together in a concrete manner”.

August 26, 2025
Global Africa Business Initiative Rallies Leaders to Accelerate Digital Growth in Africa
…Held under the theme “Connect. Empower. Prosper: The Big Push for Digital Africa”, the GABI Bridge side event brought together decision-makers from government, industry, finance, and technology

As digital transformation continues to shape Africa’s economic landscape, the Global Africa Business Initiative (GABI) convened top public and private sector leaders at the Africa CEO Forum 2025. The high-level GABI Bridge session, focused on accelerating investment, collaboration, and aligning policy to support Africa’s digital advancement.

Held under the theme “Connect. Empower. Prosper: The Big Push for Digital Africa”, the GABI Bridge side event brought together decision-makers from government, industry, finance, and technology to address how Africa can build inclusive digital infrastructure, develop innovation ecosystems, and unlock scalable opportunities in the digital economy.

In her opening remarks, Sanda Ojiambo, Assistant Secretary-General and Executive Director of the United Nations Global Compact, emphasized the need for collective ambition:

“Africa’s digital future must be inclusive, sustainable, and African-led. This is not just a technological imperative – it’s an economic and social necessity. By investing in digital infrastructure, skilling our youth, and promoting innovation ecosystems, we empower Africa to lead in the Fourth Industrial Revolution.”

Key Takeaways from the GABI Bridge at Africa CEO Forum 2025
1. Urgent Acceleration Needed for Digital Infrastructure Investment
Public and private sector leaders highlighted the need to fast-track investment in Africa’s digital infrastructure. Despite significant strides in connectivity, vast rural and underserved areas remain at the edge, limiting access to digital tools, services, and opportunities. To bridge this gap, stakeholders stressed the need for coordinated investment strategies that combine public funding with private-sector innovation. Integrated finance models—leveraging government incentives, international development funding, and business investment—were core mechanisms to unlock sustainable financing for large-scale infrastructure projects.
1. Cross-Sector Collaboration Essential for Scaling Digital Transformation
Speakers emphasized that digital progress relies on strategic collaboration across industries, sectors and borders. A central theme of the discussion was the necessity of stronger public-private partnerships to speed up infrastructure development, enhance regulatory frameworks, and promote digital transformation. Governments, multilateral institutions, private enterprises, and local innovators must join forces to build a digital landscape that is both inclusive and sustainable.
1. Locally Led Tech Growth Must Be Prioritized
The session reinforced the critical need to empower Africa’s homegrown tech talent. Regulatory reforms, startup-friendly policies, and improved access to venture capital and accelerator programs are key to promoting a thriving local innovation landscape.
1. A Cornerstone for Africa’s Continental Free Trade Area (AfCFTA) Success
Industry experts stated that digital trade is a powerful force boosting commerce across Africa. Seamless cross-border trade depends on harmonized regulatory frameworks that support digital transactions, reduce friction in e-commerce, and facilitate smoother movement of goods and services within African markets.
1. Future-Proofing Education for the Digital Age
There was strong consensus on modernizing education systems to equip Africa’s youth with essential digital skills. Key recommendations included curriculum upgrades, teacher training investments, and closer collaboration between educational institutions and the tech sector.

Driving the Digital Agenda Forward

The GABI Bridge concluded with a clear mandate: turn commitments into investments, partnerships into scalable platforms, and digital ambition into measurable outcomes. As GABI continues to shape Africa’s role in the global economy, the GABI Bridge remains a crucial forum for aligning priorities, mobilizing resources, and driving actionable strategies.
May 14, 2025
AFRICA RE, IFC Puts A Smile On African Farmers Faces
Africa-Re’s partnership with IFC (A member of the World Bank Group) in March 2019 is strategic and symbolic. The Partnership aims at providing technical support to insurance companies for their agricultural line by using index-based agricultural insurance.

This no doubt will trigger innovative and more efficient solutions for small farmers, help them mitigate effects of climate change-related shocks, protect them against catastrophic losses and access to finance.

The African agriculture insurance market has encountered several challenges that have resulted in the very low penetration levels of this class over the years. Initially, indemnity based products were a common feature. However, these products became riddled with high costs of administration and the inherent fraud risks made it difficult for underwriters to implement. Thus a parametric solution was sought, specifically to encourage the smallholder farmers access to insurance at affordable terms. This solution is currently being adopted in many African markets.

Unfortunately, the parametric solution is also encountering many challenges in its implementation. These include high premium rates, high volatility of net account results for risk carriers, low institutional capacity and limited reinsurance capacity.

In order to address these challenges that have impacted the expansion of agriculture insurance solutions in Africa, the IFC’s Global Index Insurance Facility (GIIF) set up an experience account whereby the loss ratios of the net account for local risk carriers would be capped at 75% and the excess loss amounts transferred to the Global Index Insurance experience account. African Reinsurance Corporation acts as the fund administrator. The Global Index Insurance Facility (GIIF) is a multi-donor program managed by the World Bank Group created to address the scarcity of affordable insurance protection against weather and catastrophic risks in emerging countries. GIIF is supported by the European Commission, the African, Caribbean and Pacific (ACP) Group of States, the Netherlands Ministry of Foreign Affairs, the German Federal Ministry of Economic Cooperation and Development (BMZ), and the Japan Ministry of Finance.

The pilot phase of the experience account was set up in 2017 for a 3-year period to end in December 2020. The USD$900,000 fund covered Nigeria and Zambia and was intended to support the development of weather and area yield index insurance programs in these countries.

The benefits of the experience account to the index insurance portfolios cannot be overemphasized and include;
- Protection of risk carriers net accounts from adverse loss scenarios whereby they can recover monetary amounts from the fund facility in the event their loss ratios exceed 75%, however capped at some monetary limit.
- Motivation for risk carriers to continue writing agriculture businesses as they know they have some cushion in the event of a bad year. This has resulted in an increased number of licensed agriculture underwriters since 2017. (For example, in Nigeria, the number of licensed underwriters has grown from 4 in 2017 to 15 in 2021).
- Motivation for risk carriers to provide fairly affordable prices to smallholder farmers as well as tailor-made products that are attractive. Smallholder farmers can therefore easily access insurance. The number of insured farmers as well as premiums written for the last 3 years have therefore grown considerably.
“This initiative would certainly go a long way in moving Nigeria towards its goal of food security in line with Africa-Re’s mission to support African economic development“ — Ken Aghoghovbia (DMD/COO-Africa Reinsurance Corporation).

During the last 3 years, the experience account fund has been triggered twice – in 2019 and 2020.In 2019, two risk carriers, Mayfair Insurance Company, Zambia and AXA Mansard Plc, Nigeria, benefitted from the fund following various flood losses that impacted their net account portfolios.

In 2020, the Nigeria market was again hit by flood losses that affected 8 local risk carriers on the CBN Area Yield Index Anchor Borrowers Program (Wet Season) for rice, maize and cotton crops. The total market gross claim was NGN1,995,487,009(Approximately USD$5M) and the local insurers that covered the risk include Veritas Capital, Leadway Assurance, AIICO Insurance, AXA Mansard Insurance Plc and Royal Exchange Insurance Plc. Africa Re paid about US$1.5M to the lead insurer as their reinsurance share of the claim and has handed out a total of US$827,000 to the local risk carriers from the IFC’S GIIF experience account fund.

With the increasing number of agriculture risk carriers as well as smallholder farmers in need of insurance, coupled with the climate change impacts stemming from erratic climatic conditions worldwide, the future of agriculture and hence food security in Africa is uncertain. It is obvious that the need for wider incentive programs such as the GIIF experience account will be key parameters in mitigating challenges associated with these anticipated scenarios in the future.

The IFC/GIIF fund which Africa Re manages on behalf of the agriculture industry stakeholders aligns well with its mission statement of fostering the development of insurance and reinsurance industry in Africa.
October 5, 2021