Pan-African telecoms operator AXIAN Telecom has acquired an 8% minority stake in Jumia Technologies AG, signaling a new chapter in the embattled e-commerce company’s turnaround journey. The acquisition, disclosed in a beneficial ownership filing with the U.S. Securities and Exchange Commission (SEC), underscores AXIAN’s growing commitment to supporting Africa’s digital economy through strategic investments in transformative tech businesses.
AXIAN Telecom, which operates in nine African markets under its Yas (mobile) and Mixx by Yas (fintech) brands, described the acquisition as aligned with its vision to deliver inclusive, accessible, and innovative digital services across the continent. The company’s CEO, Hassan Jaber, emphasized that Jumia’s accomplishments in digital retail, logistics, and financial services — particularly through JumiaPay — position it as a strong catalyst for economic and financial inclusion.
“Jumia’s unique position in digital retail infrastructure, payments, and logistics makes it a compelling investment for us,” said Jaber. “We are aligned with its strategic vision and look forward to contributing positively to its growth and success.”
AXIAN’s investment arrives at a pivotal moment for Jumia, as the company navigates significant financial headwinds and competitive pressures. Jumia reported a 26% year-over-year drop in revenue in Q1 2025, with earnings falling to $36.3 million. The decline in constant currency terms was slightly softer at 18%, but still reflected ongoing challenges in core markets and the aftermath of macroeconomic turbulence across the continent.
In addition to revenue pressure, the company recorded an operating loss of $18.7 million, more than double the $8.3 million posted in Q1 2024. Despite these setbacks, Jumia achieved a 58% year-on-year improvement in its pre-tax loss, which narrowed to $16.5 million, largely due to reduced finance costs stemming from lower currency devaluation impacts in Nigeria and Egypt.
Jumia’s Road to Resilience
Under the leadership of Francis Dufay, who became CEO in 2022, Jumia has embarked on a focused restructuring process. The company exited underperforming markets like South Africa and Tunisia, redirecting resources to higher-growth regions including Nigeria, Egypt, Kenya, and Morocco. This geographic focus is part of a broader strategy to streamline operations, cut costs, and sharpen the company’s value proposition in regions where it maintains a strong foothold.
AXIAN’s backing could provide critical support for this new phase, potentially helping Jumia solidify its logistics capabilities, expand JumiaPay, and gain a competitive edge against rising challengers like Temu and Shein, who are rapidly increasing their presence in African e-commerce.
Strategic Synergy
AXIAN Telecom is no stranger to market disruption. As the sixth-largest mobile operator in Africa, it has made bold moves to unify operations under the Yas brand and scale fintech access through Mixx by Yas. This strategic investment in Jumia is seen as a continuation of that ambition — one that brings telecom infrastructure, fintech expertise, and market reach into synergy with Jumia’s e-commerce and digital service ecosystem.
While the road ahead for Jumia remains complex, this partnership could be the boost it needs to recalibrate and reclaim its leadership in Africa’s e-commerce landscape.
