Broadcasting
Jumia’s Expansion Plans Set to Dominate the E-Commerce Market in 2024
Nigeria’s e-commerce scene is ever-growing, projected to reach $22 billion by 2024. But this digital revolution isn’t confined to bustling metropolises; it’s quietly transforming the lives of millions of consumers in secondary cities and rural areas. At the forefront of this rural e-commerce push is Jumia, Africa’s leading online marketplace. By strategically expanding beyond the bright lights of Lagos and Abuja, Jumia is connecting previously underserved communities with the vast array of goods and services available online, bridging the retail gap and empowering rural Nigerians like never before.
Prior to the creation of companies like Jumia that made it possible for consumers to shop without geographical restrictions, purchases of several commodities required lengthy trips, increased costs and risks that accompanied traversing unsafe roads. E-commerce has grown over the past decade with the increased penetration of smartphones and the internet. As of 2020, GSMA reported a mobile subscriber count of 173 million in Nigeria, indicating an 85% penetration rate. The prevalent use of smartphones enables consumers to conveniently access e-commerce platforms and make purchases from anywhere in the world.
Recognizing the growing number of rural Nigerians with internet access, the company embarked on a strategic expansion into secondary cities and rural areas. This involved establishing logistical networks, partnering with local agents and businesses, and tailoring product offerings to cater to the specific needs of rural communities. Jumia launched the JForce programme — a grassroots initiative launched by Jumia to take e-commerce to secondary cities within Nigeria — to meet this need. Under the aegis of the JForce programme, Jumia has established efficient delivery infrastructure, including partnerships with local logistics service providers and leveraging community pick-up stations, reaching even the most remote villages.
Modifying existing strategies, Jumia combined online and offline operations to cater to both those who have access to the internet and those who don’t. Through this tactic, the company has taken e-commerce to hundreds of Nigerians in rural communities, where digital literacy is limited.
Leveraging the age-long art of marketing by mouth, Jumia, through its JForce initiative has bridged the digital divide in rural communities and increased accessibility to e-commerce. JForce adopts a very communal model – local sales representatives who are tech-savvy give community members who lack access to smartphones or are digitally illiterate access to product catalogues on the Jumia Marketplace platform and place orders on their behalf. Strengthening the pillars of JForce, Jumia simultaneously established more than 250 pickup stations and collaborated with reliable logistic partners to fast-track product deliveries to secondary cities and rural areas. The deliberate positioning of these pick-up stations in diverse towns guarantees accessibility to even the most remote corners of Nigeria, thereby enabling customers in rural areas to overcome geographical limitations and access various products. This initiative has been a vital way to enable many rural communities to leapfrog economic and geographical barriers, stimulating growth and development with target communities and the e-commerce sector.
But the communities are not the only beneficiaries. Through JForce, Jumia works with local entrepreneurs, training them as agents to facilitate online purchases and deliveries, creating jobs and fostering economic growth within the communities. To date, Jumia has over 35,000 active JForce agents who earn a living through commissions earned from introducing consumers to shop online.
Transforming Lives, One Click at a Time
Jumia’s impact in rural Nigeria is undeniable. Families can order essential items directly to their doorstep, saving them time and money. Jumia’s “E-Commerce in Rural Areas in Nigeria” report highlights these positive changes. It reveals a significant rise in online purchases from rural areas, with a growing demand for smartphones, home appliances, and fashion items. The report also showcases the positive impact on rural entrepreneurs, with many Jumia agents reporting increased income and business opportunities.
Challenges and the Road Ahead:
Despite the success, challenges remain. Limited internet connectivity and digital literacy in some rural areas can hinder adoption. Additionally, reliable electricity supply and efficient payment systems are crucial for sustained growth.
Jumia is actively addressing these challenges. Last year, the company partnered with Starlink, a satellite internet service, to retail the Starlink Residential Kit in Nigeria to bridge the digital divide by delivering Starlink’s high-speed, low-latency internet to previously underserved regions.
In the third quarter of 2023, Jumia experienced significant growth in Gross Merchandise Volume (GMV) for physical goods across five countries, a surge that can be partially credited to its intensified expansion into rural areas and secondary cities. With the recent appointment of a new CEO in Nigeria, the company’s focus is on driving expansion initiatives across the country, aiming to replicate the successes observed in those five countries. Doubling down on this expansion strategy, Jumia aims to broaden its reach, linking more consumers to the e-commerce sphere, extending beyond the confines of major cities and into previously untapped regions within the country.
With pillars for growth and expansion solidly set in place in 2023, it is left to be imagined what the e-commerce leader will achieve this year.
In today’s fast-paced world, where every penny counts, finding ways to save on essential services is more important than ever. And as part of its commitment to customer satisfaction, DStv has reiterated its “Price Lock” feature.
This is in response to the upcoming tariff increase, which the company understands may impose some financial strain on its valued customers.
What exactly does the “Price Lock” feature entail? The “Price Lock” feature offers customers the opportunity to retain their subscriptions at the current rate for 12 months.
To use the “Price Lock” feature, customers simply need to renew their subscriptions before the due date each month, ensuring uninterrupted access to their favourite DStv content at the current rate for the next 12 months.
But here’s the catch: only customers with an active subscription by the 30th of April qualify for this offer, when the tariff adjustment comes into effect.
Make sure you don’t miss the price lock offer! Simply download the MyDStv or MyGOtv app or dial *288# to subscribe, upgrade, or set up Auto-Renewal.
Civil Society Organisation (CSO) under the auspices of Open Justice Initiative (OJI), has threatened to drag the National Broadcasting Commission (NBC) to court if it fails to ban Netflix, TikTok, and others over the alleged broadcast of offensive same-sex content on Nigeria’s airwaves.
The CSO, also urged NBC to ban other social media platforms, including X, formerly known as Twitter, Facebook, etc with regard to the subject matter.
Donald Ayibiowu, lawyer and programme officer of OJI, gave the warning in a letter addressed to Mr. Charles Ebuebu, director-general of the NBC.
The certified true copy of the letter titled: “Need to ban and bar the continuous broadcast of offensive same-sex contents on Nigeria’s airwaves by Netflix and other specialised broadcast outlets”, made available to newsmen in Abuja, was received by the Commission on April 23, 2024.
The letter said, “We write to draw the esteem attention of your commission to some obnoxious and repugnant same-sex contents being aired or transmitted by some broadcast outfits operating within the Nigeria broadcast space, which platforms includes Netflix and some social media entities.
“These abhorrent contents being campaigned about borders on the promotion of amorous relationships between persons of same sex on the said platforms.
“We received complaints on this topic from well-meaning Nigerians and religious organisations and further discovered that the broadcast contents/materials on these platforms are laced with embedded scenes/episodes where same-sex relationships are practically being propagated.
“We also conducted research on some social media platforms like TikTok, Twitter (X), Facebook (Meta), etc with regards to this subject, and found same hazardous and illegal same-sex content being promoted and transmitted.
“It is clear that there is an agenda to surreptitiously lure the unsuspecting young population of this country to this satanic habit/lifestyle of same-sex practice in Nigeria by subtly introducing same through entertainment and showbiz industry, albeit through the airwaves.
“It is now commonplace to see some of these illegal contents being conveyed on social media and specialised platforms in Nigeria.
“We wish to point out that these contents are clearly being aired or transmitted in contravention of our extant laws such as Sections 4(2) and 5(2} of the Same-Sex Mariage (Prohibition) Act, 2013,” he said.
The lawyer said the act being subtly propagated and promoted via the mediums was targeted at destroying the moral fibre and rectitude, erode, dislodging and polluting the society with unacceptable inhuman values.
He said it was also to erode the age-long cultural practices and sacred religious belief system of male and female gender only as created by God Almighty.
Ayibiowu said, that if the commission failed to block, restrict or scrap the same-sex promotional material/contents from Nigeria airwaves, “we shall proceed to seek further redress in pursuit of our goal of saner Nigeria airwaves”.
Federal Competition and Consumer Protection Commission (FCCPC) has promised to review recent price increases in MultiChoice cable subscriptions to ensure subscribers in Nigeria get value for their money.
Recall that the leading pay TV operator, recently announced increase in the subscriptions for its DStv and GOtv packages by at least 25 per cent.
Multichoice announced the increase in tarrifs in a message sent to subscribers on Wednesday and said that the new regime will be effective May 1.
The company stated this in the statement signed by John Ugbe, chief executive officer was titled, ‘Price Adjustment on DStv and GOtv Packages.’
The pay-TV firm cited the rise in the cost of business operations as the rationale behind the price increase.
The company said, “We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations, has led us to make this difficult decision.
“It remains our mission to provide the best entertainment and viewing experience to you and are committed to continue to deliver high-quality content and unparalleled service. So, from Wednesday, 1 May 2024, the price adjustment will take effect.”
But Adamu Abdullahi, acting chief executive officer, FCCPC, in a chat with Channels Television on its Dateline Abuja programme on Thursday, provided an update on the summons issued to the owner of a Chinese store in Abuja accused of discriminatory and sharp practices.
He also commented on the adherence to the order given to the Abuja Electricity Distribution Company, stating that sanctions are imminent for all verified infractions identified by the agency.
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