At the end of last week, the e-commerce giant, operating mainly in Africa, is listed on the New York Stock Exchange (NYSE). Its shares began to bargain at around KES 1
publications around the world for one of the key reasons: it was the first non-African organization whose clients are based in Africa, listed on the NYSE. People interested in this showed that the company offered 17.6% of its shares to a platform, which is expected to raise to KES 21 billion for e-commerce. According to TechCrunch, MasterCard Europe was the first major company to use the feed since it purchased shares of KES of 5 billion.
However, these past weekends were marked by several ideas that refute the announcement that Jumia is the first launch of Africa, given that the headquarters of the corporation is located in Europe. Africa is where it works, but its key business operations and important workforce are nothing else than Africa. The issue was rejected as PR, as Jumia acted as an African firm when it became the first African company to start manufacturing, valued at $ 1 billion. To this end, let's consider whether Jumia really is an African launch, using the information we picked for the weekend.
Is Jumia an African e-commerce business, or does it use this pseudonym for PR reasons?
Well, firstly, let's face it: Jumia is not and never was an African startup. He was founded by two French citizens, Jeremy Hodar and Sasha Pooyonnyok, and registered in Germany. The founders own more than 2 percent of the company's shares. However, some argue that the original founders of Jumia, Kahinde and Afaedor, who are Africans, qualify the African roots of the firm. In addition, Jumia reports that its exclusivity in the market makes it African; The lion's share of its taxes is paid on the continent, and over 5,000 people work in Africa. Nevertheless, the question arises when the composition of its senior management and business operations, which create a lack of diversity.
According to SEC form, published by QZ, Jumia is a technically German company.
"On December 7th and 18th, 2018, our shareholders decided to change our legal form to the German corporation ( Aktiengeselleschaft ) and changed the name of the company to Jumia Technologies Limited," the statement reads.
In addition, Jumia often says that she is active in Africa, especially in six countries. It does not make it an African business, so to speak. This approach is used by other global companies that operate in several markets, and some as a primary base. Being active, such markets are not in fact their home property.
Some high-ranking startups operating on the continent, or founded by Africans, did not succeed because they were essentially Africa. In most cases, those based on African indigenous people often experience dramatic changes in management or property during expansion; venture capitalists who often reveal non-African potential, and through business policies and so on, involve their own management team or redeem original founders or strengthen leadership. This applies to startups, such as Andela, who work as African companies when they are not really. This question is repeated by the tweet, sent earlier by Marek Zmyslovsky.
It does not matter how many African founders or employees have Yumiya. This IPO and good PR, as the first "African technical start-up on the NYSE" will bring more money to the ecosystem than all twitter interpretations of "truly African" funds over the past 7 years.
– Marek Zmyslovsky (@marekchinedu) April 14, 2019
The further study of the Jumia SEC file opens up additional information such as the technology center of the firm.
"We are centrally managing our operations, allowing for effective decision-making and planning. Our global technology center in Porto, Portugal, has provided a centralized, unified technological basis for our work in our six regions, "the file said.
Do Jumia operations, which insist on their African roots, act as protective measures for clients and shareholders? Well, if a business places its interests under the guise of protecting shareholders or customers, it will have a lot of work cut out for itself. The organization will constantly have to fight for customer confidence, doing things and covering trails.
Is announcement listing as an African startup a little dishonest? Probably If the startup tries to conceal a disadvantage, he should remember that dishonesty can (and most likely be caused by the perturbation that was put on the social media platform), picked up by consumers. It does not matter, even if it tries to fix this discrepancy.
Does Jumuya think that he can go with his misleading messages? But with the constant need to expand its e-commerce proposals and as Amazon in Africa, there is a fine line between the marketing forces of Jumia and the lies about them. The key to avoiding these problems is simple: be honest with consumers.
CEO Sacha Poignonnec Comments
In an interview conducted by CNBC, the CEO of Jumia Sacha had a lot to say
. "Uniqueness of Africa for sellers. It's very difficult to distribute your products due to infrastructure inefficiencies. Our solution was to go online as Jumia, "says Sasha CNBC.
When asked why Jumia has its engineering station in Portugal and its leadership in Germany, the general director said:
"We are a fully African company. We work exclusively in Africa. There are more than 5,000 workers on the continent. "
However, 5,000 workers work predominantly in warehouses. Do not think good with many people, therefore, the indignation that has pushed Jumia to the number one spot on Twitter's topic trends.
All developers arguing for Jumia, CEO Jumia went on television and told the entire western world you are not good enough to affect your global competitiveness
– ethelcofie (@ethelcofie) April 15, 2019
Discussion? Probably the CEO of Jumia, Sasha Poynonnik, says that Africa does not have enough developers, so they do not hire them at the local level. 🤔 pic.twitter.com/D2wU76lawt
– Dan Riro 🇰🇪 (@Danfar_) April 14, 2019
And indeed Jumia was looking for talent based on African countries
I will not really talk about it to those of us who are developers and to work with developers to know better.
I just want to ask @sachapoignonnec if they even tried to search, and then they realized that they were not enough. What would mean that they hired only what they did not count? LOL https://t.co/oBPtkzKsRv
– Dr. (@chao_mbogho) April 14, 2019