Jumia, one of Nigeria’s leading e-commerce platforms, has projected that the value of the country’s rapidly growing e-commerce industry will hit $22 billion in 2024.
The announcement was made through a report titled “Jumia’s E-Commerce in Rural Areas in Nigeria,” emphasizing the transformative impact of e-commerce beyond major cities.
The report highlights that Jumia’s strategic expansion beyond urban centres aims to connect previously underserved communities with a wide range of online goods and services, ultimately bridging the retail gap.
Before platforms like Jumia, purchasing various commodities required lengthy trips and incurred additional costs and risks associated with traversing unsafe roads.
E-commerce growth in Nigeria has been facilitated by increased smartphone penetration and internet access.
The prevalence of smartphones allows consumers to access e-commerce platforms, conveniently purchasing from anywhere globally.
Acknowledging the growing number of rural Nigerians with internet access, Jumia has expanded into secondary cities and rural areas by establishing logistical networks, partnering with local agents and businesses, and tailoring product offerings to meet the specific needs of rural communities.
The report mentions the JForce program, a grassroots initiative by Jumia to extend e-commerce to secondary cities in Nigeria.
Under this program, Jumia has established efficient delivery infrastructure, including partnerships with local logistics service providers and community pick-up stations, even in remote villages.
Despite notable success, limited internet connectivity, electricity issues, and digital literacy in some rural areas still hinder widespread adoption.
Jumia stated that it is actively addressing these challenges, including partnering with Starlink, a satellite internet service, to deliver high-speed, low-latency internet to underserved regions.
The report indicates that Jumia experienced significant growth in Gross Merchandise Volume for physical goods across five countries in the third quarter of 2023, partially credited to intensified expansion into rural areas.
“With the recent appointment of a new Chief Executive Officer 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,” it said.
