Jumia, the leading e-commerce platform in Africa, is embarking on a transformative journey by focusing on rural e-commerce markets. This strategic shift aims to revive the company’s fortunes and address consistent quarterly losses and an underperforming stock price. In a recent interview, Francis Dufay, the CEO of Jumia, unveiled the company’s rural strategy, which is already underway in key markets such as Nigeria, Kenya, Ivory Coast, and others.

Dufay emphasized that Jumia’s approach to e-commerce in Africa is distinct from global e-commerce giants like Amazon. He stated, “From the outside, it looks like we’re doing e-commerce like any global e-commerce company. But the truth is we’re doing e-commerce for emerging markets in Africa. It’s not a copycat of Amazon in the U.S. That would not work. We’ve adapted the model to fit the market and our customers’ needs.”

Acknowledging the unique challenges of reaching potential customers who have never tried e-commerce and lack internet connectivity, Dufay highlighted the company’s efforts to adapt and cater to the rural population. He stated that Jumia has established business assets that allow communication with customers in areas with poor internet connectivity. Additionally, the company has set up small ticket stations in smaller cities, enabling physical interaction with Jumia’s services.

A recently published report titled “Expanding E-Commerce in Rural Areas in Ivory Coast” showcases Jumia’s successful penetration into underserved regions and its ability to provide e-commerce opportunities to rural populations. Drawing on Jumia’s 2022 non-financial data, the report sheds light on the company’s expansion strategies in rural communities in Ivory Coast.

In Ivory Coast, Jumia has established over 181 Pick-Up Stations (PUS) across 107 towns, including remote areas. These stations effectively cater to the shopping needs of rural consumers, ensuring access to a wide range of products. The company’s collaboration with local logistics partners ensures streamlined supply chain operations, meeting the diverse demands of these underserved markets.

The report highlights the pivotal role played by JForce, a network of 40,000 independent sales consultants, in educating consumers about Jumia’s offerings and generating awareness through local and offline marketing channels. JForce’s efforts introduce e-commerce to rural populations, fostering growth and promoting brand adoption.

“We take pride in bridging the digital divide and empowering communities with access to a wide range of products and services through our online platform,” expressed Dufay, emphasizing Jumia’s commitment to driving economic growth and improving lives. Rural consumers in Ivory Coast have already experienced the benefits of Jumia’s extensive selection of affordable products, with 90% reporting savings on their purchases and 71% planning to reorder through Jumia.

Furthermore, Jumia’s expansion into secondary cities and rural areas has created numerous opportunities for young entrepreneurs across Africa. The company has enabled thousands of young individuals in Ivory Coast to become their own bosses and earn commissions through sales on the platform, promoting e-commerce and economic empowerment.

Jumia’s ambitions for rural expansion extend beyond Ivory Coast. The company says it aims to achieve 15% growth in its rural areas in Kenya by the end of 2023. Juan Seco, CEO of Jumia Kenya, revealed that the e-commerce giant plans to expand its reach to rural Kenya, ensuring that underserved communities have access to millions of products on the platform. The expansion program will particularly benefit customers in Nyanza and Western regions of Kenya.

Jumia Africa CEO concluded by expressing confidence in Jumia’s ability to operate with the right level of cost efficiency, stating, “At this stage, we don’t have a demand problem. We are continually improving our model and making the necessary changes to achieve profitability with a model specifically tailored to Africa,” affirmed the CEO.

Beyond economic growth, Jumia’s focus on rural e-commerce holds the promise of empowerment for countless individuals, the report stressed. As more young entrepreneurs seize the opportunities offered by the platform, they gain independence and contribute to the growth of their communities. By fostering entrepreneurship, Jumia nurtures a spirit of innovation and self-reliance that can propel Africa’s economy forward.