Jumia: Why did Wall Street sour on Africa’s e-commerce Unicorn?

By Joël Té-Léssia Assoko
Posted on Tuesday, 15 November 2022 11:50

The e-commerce platform Jumia, which is presented as African, is registered in Germany and its managers are, for the most part, based in Dubai.
The e-commerce platform Jumia, which is presented as African, is registered in Germany and its managers are, for the most part, based in Dubai. ISSOUF SANOGO / AFP.

Under pressure from investors, the board of the e-commerce platform got rid of its two cofounders. The company vows to be more focused on its operations in Africa, its core commercial business and profitability. 

“You know what I’ve noticed? Nobody panics when things go ‘according to plan’. Even if the plan is horrifying!” sneers The Joker in Christopher Nolan’s The Dark Knight (2008).

Was Sacha Poignnonec, co-CEO of Jumia, betting on the same warped logic when he told Wall Street analysts on August 10: “The results of our clear strategy and consistent execution are coming nicely together”?