VenturesNow

Jumia ends food delivery chain in Nigeria, 6 other African countries

Published

1 year ago

December 15, 2023

Pan-African e-commerce platform, Jumia, has announced plans to end its food delivery business, Jumia Food, in Nigeria and seven other African countries by the end of the year.

Jumia stated that the move was required following a careful analysis that showed the food delivery industry was not viable given the state of the economy and market conditions in the nations where it operated. Employees of Jumia Food will move to support the successful physical goods operations in the impacted nations.

The six other countries that would be impacted are Ivory Coast, Kenya, Uganda, Morocco, Tunisia, Algeria, and Algeria, the company said in a statement.

“Following a strategic review of Jumia Food, the Company determined that its food delivery business is not suitable to the current operating environment and macroeconomic conditions in its market, and will close its food delivery operations in all markets by the end of December 2023,” the statement reads.

“This decision aligns with the Company’s strategy to optimise its capital and resource allocation and to continue its path to profitability.

“The food delivery business represents approximately 11% of Jumia’s Gross Merchandise value (GMV) for the nine months ended September 30, 2023, and has not been profitable since the inception of the business.”

Jumia’s CEO, Francis Dufay, stated that the company was realising more and more that there was enormous potential for growth and a path to profitability the more it concentrated on the physical goods business.

“We must take the right decision and fully focus our management, our teams, and our capital resources to go after this opportunity,” Dufay said.

“In the current context, it means leaving a business line, which we believe does not offer the same upside potential—food delivery.”

Recently, Nigeria has suffered the exit of high-profile firms amidst rising operating costs. Perennially, Nigeria’s underdeveloped power sector is a bottleneck to broad-based economic development and forces most businesses to generate a significant portion of their electricity. The forex market instability, and cost of production hike have massively impacted businesses as well.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”