The second wave of the covid-19 led by the more deadly variants of the virus is a serious cause of concern for authorities across the globe. Though vaccines have been devised for curing covid-19 infections, prevention is still recommended as the best antidote to the virus. Hence, individuals are urged to adhere strictly to preventive measures to limit spread.


In Nigeria, business activities are still encouraged by the government to keep the economy afloat as the country could not afford the economic implications of a total lockdown. To keep this window of activities open, Nigerians need to keep to safety measures. One of the ways to avoid crowded places and risk of transmission is to embrace digital services that help keep up with daily needs without physical contact.


With the outbreak of the COVID-19 pandemic, the demand for online food delivery is rising significantly as a result of the lockdown and social distancing guidelines. Consumers who embrace the growing trend can continue to stay safe with comfort and convenience while shopping for food and other essentials for daily upkeep.


Food is essential to survival, and the growing trend of foodservice delivery will help limit the speed of transmission. To help widen the online food delivery experience and promote safety in these times, online retails stores are partnering with restaurants to make local intercontinental dishes available to customers. Fast food brands like The place, Chicken Republic, Sooyah Bistro, Sweet Sensation, Drum Stick and others are making their services available for order and delivery on the Jumia platform. KFC, Cold Stone as well as Pizza Hut are also available for order.


Likewise, groceries and beverage products are not left out. Renowned beverage producers such as Nestle are making their products available on the Jumia platform. With Jumia Food, groceries are also available for order and safe delivery through the contactless delivery option for customers who want to subscribe to the service.


According to Jumia Nigeria CEO, Massimiliano Spalazzi, online shopping will help promote the adoption of social distancing measures and eliminate the contact risk associated with brick and mortar stores, as people can purchase different products of their choice and get them delivered from the safety of their home.


“Covid-19 pandemic is showing the importance of online marketplace and why it should be part of people's lifestyle at this time. As the world battles with the realities of the second wave of the virus, people are being urged to avoid large gatherings, limit human contact as much as possible and observe strict hygiene practice. And it is becoming increasingly obvious that online shopping remains one of the ways individuals can take precautions to limit the spread.”


To further drive the growth of online food and beverage delivery in the country, Jumia recently extended its food delivery services to more states in Nigeria. The new cities on the Jumia Food map include Minna, Benin City, Kaduna, Abeokuta, Kano, and Ilorin. For a better customer food delivery experience, Jumia also recorded a major service improvement in its existing footprints in Lagos, Port Harcourt, Abuja, and Ibadan by increasing its speed of delivery, with an average delivery time as fast as 26 minutes in Port Harcourt, 27 minutes in Lagos, 28 minutes in Ibadan, and 30 minutes in Abuja.

With the rising cases of transmission, high records of deaths, extremely stretched health care systems, the second wave of covid-19 looks like playing 2020 over again across global borders. Possibly more than what obtained in the first wave, some western countries have been made to enforce stricter measures against the spread of the virus.

Though the Nigerian government is yet to enforce total lockdown, the pace of transmission is a serious cause of concern to critical stakeholders and decision-makers, as they more than ever enjoined the public to adhere to proper safety protocols to curtail the spread. While operating under the eased lockdown of the federal government, Nigerians are urged to avoid crowded places and keep a safe distance.

Many customers are still conscious of the threat of covid19 and thus opt for eCommerce which gives them a shopping experience from the comfort of wherever they are. Platforms like Jumia are bolstering safe distancing through products such as JumiaPay that enable consumers to make online purchases, orders, and payments for goods without any physical contact with anyone. Through Jumia contactless delivery, its agents and riders in personal protective equipment delivered without a direct body contact or cash exchange with the delivery agent. Jumia also reduced fees on its JumiaPay finance product to encourage digital payments over cash. 

“The onset of the Covid-19 pandemic in the first quarter of 2020 brought about a complex combination of health, economic, and operational challenges. Our first priority was to help our employees, consumers and communities stay safe. On the operational side, we took prompt action to ensure business continuity and adjust our logistics to meet high standards of safety and hygiene. We have sustained these measures to ensure our customers continue to stay safe while using our collective products and services in the light of the second wave of the pandemic,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

Beyond the safety benefits of online marketplaces, they also provide an unlimited array of products at lower prices. There are several options available to compare prices from different stores and manufacturers. E-retailers also offer discounts on different products. Going for online shopping can be a cost-saving move at this time.
Online shopping provides you services from the comfort of wherever you are with mobile internet without the worry of working hours. eCommerce platforms run their logistics networks that cover transportations and delivery of your products even at a lesser cost when compared to present-day public transportation fares.

The pandemic also doubles as the period individuals embrace shrewd financial decisions due to the economic realities enforced by the virus. Hence, compulsive shopping is one thing customers would like to avoid.  While physical stores have assistants that can lure you into buying what you don’t need or want to buy, such distractions or pressure are not present at online stores. You shop at your pace and don’t need to think twice before logging out if you can’t find what you need. Added to this is the discrete shopping experience online shopping provides customers especially on sensitive products. Product packaging is done in a way that even the delivery agent can’t identify what’s in the package.

Jumia has commenced its first sales festival of the year, the Jumia Global Festival, which runs from January 25th to 31st, 2021 with exciting offers at mouthwatering discounts.

The virtual festival is live on the Jumia App and website, it promises to be an explosion of fun-shopping, filled with great offers. It gives buyers in Nigeria the opportunity to order international products at a discounted rate from vendors in countries like Dubai, China, Turkey, etc. and get them delivered at their doorsteps.

The festivall also treats Nigerian customers to a hassle-free shopping experience by providing them the opportunity to purchase products with local currency from international vendors, while paying with the Naira. Their orders will also be delivered with no hidden or additional cost.

The festival is the biggest international product sale of the year and customers who take advantage of the sales festival stand to gain up to 80% discount on Jumia Global items, free delivery from select stores, and daily flash sale offers holding between 10am and 2pm.

The Jumia Global Festival provides a collection of over 13 million products shipped globally with unlimited choices of products with the lowest prices, and Jumia’s 7 days return policy also applies on items purchased during the festival.

By Ayomide Oriade

"Every health professional in Nigeria is concerned about the second wave and the rate at which the virus is spreading in the country. It showed that people didn’t keep to required protocols despite the warnings. Our health system can’t handle an exponential increase, and the majority of Nigerians can’t afford the cost of private treatment. So the sensible thing to do is wear your mask at all times. Wash and sanitize your hands. Avoid crowded places. The peculiarity of the virus is such that your own hygiene is not enough. You have to make sure your family and close friends imbibe the culture else, they can infect you. A collective effort is required to limit the spread of this virus.” These were the words of Doctor Owolabi of Plato hospital, while speaking on the ravaging second wave of the deadly covid-19 virus in Nigeria.

Since the deadly second wave began, Nigeria has witnessed a surge in number of daily cases more than the nation experienced during the first outbreak. Presently, the nation’s health system is stretched to its full limit as patients scramble for few available treatment spaces.

Latest developments have shown that the safest way out is prevention. More than before, Nigerians are being urged to keep covid-19 protocols to avoid alarming spread that could spell a second national lockdown. Top on the list is the call for people to avoid large gatherings. People however need essentials such as food, groceries and hygiene products for their daily upkeep. Offline markets consisting of brick and mortar stores are often crowded with customers.

Ecommerce platforms were of immense help to customers keeping safety protocols during the nationwide lockdown in 2020. Online marketplace thus remains a valid alternative for customers to keep safe distance and shop for essentials from the comfort of wherever they are. According to Jumia Nigeria CEO, Massimiliano Spalazzi, online shopping will help promote the adoption of social distancing measures and eliminate the contact risk associated with brick and mortar stores, as people can purchase different products of their choice and get them delivered from the safety of their home.

“Covid-19 pandemic is showing the importance of online marketplace and why it should be part of people's lifestyle at this time. As the world battles with the realities of the second wave of the virus, people are being urged to avoid large gatherings, limit human contact as much as possible and observe strict hygiene practice. And it is becoming increasingly obvious that online shopping remains one of the ways individuals can take precautions to limit the spread. Ecommerce platforms possess all these features that will help customers keep to the safety culture.”

The online retail market is expanding as several brands are keying into available platforms to reach their customers. Several food restaurants are partnering with the likes of Jumia Foods, to get their food services, beverages and groceries products delivered to customers at their doorsteps. Also, hygiene products such as hand sanitizers, soaps and toiletries can be ordered online with the global manufacturers such as Reckitt Benckiser and P&G partnering with Jumia.

“From the comfort of their safety, customers can shop on the Jumia platforms with our range of products partners, make payment through online payment solutions like JumiaPay and get them delivered via Jumia Express, or our contactless agents. As the leading online marketplace in Africa, we are committed to ensuring that people get the necessities for their daily needs with adherence to safety protocols,” Spalazzi added.

From the relevance and impact of ecommerce during the first wave of the virus in Nigeria, it is safe to say that online shopping will help reduce the spread of covid-19 as it eliminates the possibilities of physical contacts associated with an average brick and mortar store.

Jumia Food has expanded its food delivery service to five additional states in Nigeria as the company seeks to further drive the growth of online food and beverage delivery in the Nigerian market. The new tier-2 cities on the Jumia Food map are Minna, Benin City, Kaduna, Abeokuta, Kano, and Ilorin.

Chief Executive Officer, Jumia Nigeria, Massimiliano Spalazzi, said the extension of Jumia Food to these additional cities is part of Jumia’s resolve to expand the growing popularity and thrilling experience of online fast food services to customers in all Nigerian states.

“The food industry is very relevant to the Nigerian economy. With today’s covid-19 realities, the growing popularity of fast food, coupled with the growing trends for convenience, safety and value for money, has opened up opportunities for the food market in Nigeria. As the leading online marketplace in Nigeria and Africa, it comes naturally to us to help drive the penetration of this service through our technology and reach of our logistics network. By doing this, we are also helping to explore the food segment of the Nigerian Agricultural sector which has the potential of huge contribution to the Nigerian economy,”he said.

In 2020, Jumia recorded a major service improvement in its existing footprints in Lagos, Port Harcourt, Abuja and Ibadan by increasing its speed of delivery, with an average delivery time as fast as 26 minutes in Port Harcourt, 27 minutes in Lagos, 28 minutes in Ibadan, and 30 minutes in Abuja.

Jumia’s 2020 Nigeria Food Index report showed that the country’s agricultural sector experienced a major boom in 2019, significantly responsible for the 90.23 percent contribution made by non-oil sectors to Nigeria’s GDP.

The index further showed that the food and grocery retail market had total revenues of $44.9 billion, representing a compound annual growth rate (CAGR) of 8.7 percent in the last eight years. The report also showed that overall grocery retailing continues to expand, as consumers seek comfort and convenience when shopping for food. The food segment was the most lucrative, with total revenues of $33.7 billion, equivalent to 75 percent of the market's overall value.

The last four weeks has been that of uplift in fortune for holders of Jumia stock, and the development is rightfully drawing attention of stock-inclined minds:

Fruitful yuletide: The stock sold as high as $47 a day to Christmas and has hovered between $34 and $39 since December 11th 2020. On January 12th 2021, Jumia stock sold at $40 on the floor of New York Stock Exchange.

Unexpected positive turn in fortune: Jumia recorded a 12% drop in revenue in the first three quarters of 2020, but has made a 600% increase in stock price since then. The best part is that the stock has sustained its good momentum for over a month.

Regret for doubters: Some investors who didn't buy Jumia stock when it sold for just over $2 in March 2020 are beating up themselves for not taking advantage. Currently trading for just over $40, some holders see an opportunity to sell. But the next few months can also bring huge fortune for those who dare to hold.

Bright prospect: Analysts ascribed the improvement to investors' belief in Jumia's potential and are willing to overlook lagging business results for the time being. For instance, a $5,000 investment in Amazon in 1997 will translate to more than $4 million today. The current good performance of Jumia stock is an indication that the brand holds the potential of being a replica of the Amazon story in Africa.

Opportunity for Africans: Jumia prides itself as Amazon of Africa. It could end up being a smart move for Africans who buy into the dream by owning part of a brand that identifies with them.

As authorities put measures in place to prevent rapid spread of covid-19 in the light of the second wave of the pandemic emanating from mutation variants of the dreaded virus, Jumia Nigeria CEO, Massiliano Spalazzi has highlighted the services of ecommerce platforms as one of the measures to help mitigate the spread among Nigerians.

While speaking on the crucial role and contributions of ecommerce in the present day socio-economic reality in Nigeria, Spalazzi said online shopping will help promote the adoption of social distancing measures and eliminate the contact risk associated with brick and mortar stores, as people can purchase different products of their choice and get them delivered from the safety of their home.

“Online shopping remains one of the ways individuals can take precautions to limit the spread of Covid-19. People are being urged to avoid large gatherings, and limit human contact as much as possible. Ecommerce platforms possess all these features that will help customers keep to the safety culture. From the comfort of their safety, customers can shop on the Jumia platforms, make payment through online payment solutions like JumiaPay and get them delivered via Jumia Express, or our contactless agents,” he said.

He pointed out the crucial role played by ecommerce platforms during the 2020 Covid-19 lockdown. “What we have seen last year has been how relevant and important e-commerce was in serving the population during these tough times. We’ve seen many different situations happen from the Covid-19, which obliged people to be locked down and having to purchase their goods in a safe way.”

During the first wave of the pandemic, ecommerce platforms served as a veritable channel for brands and businesses to connect with their customers. Global brands such as Coca-Cola, Procter & Gamble, Reckitt Benkiser, Nestle, Unilever and other essential goods manufacturers partnered with Jumia for sales of their products.

Likewise, online retail platforms were key for the survival of food and grocery enterprises when sit-in services were prohibited with customers restricted by social distancing rule. It was a period where more customers boarded the ecommerce food service train and several local restaurants partnered with Jumia to keep their food, beverage and grocery service going during the lockdown.

There was never a time in history that e-commerce has become extremely relevant to the everyday lives of Africans than 2020. A year best described by the outbreak of COVID-19, brought to the fore the indispensable role of e-commerce as consumers across Africa relied on its delivery system to access essential products.

Africa’s leading online marketplace, Jumia did not disappoint its consumers in this regard. The company swiftly swung into action by launching various initiatives that provided consumers access to essentials and guaranteed safe delivery of products to customers. A crucial aspect of the company’s various initiatives is the effort of Jumia Heroes consisting of frontline workers who ensured the continuous function of the platform for customers’ convenience and satisfaction during lockdown and social distancing enforcement.

Jumia's Heros Fund was created to support frontline and essential staff during this pandemic crisis. Through the contactless delivery initiative, Jumia Heroes delivered millions of items while remaining safe and making consumers safe, thanks to the adoption of contactless delivery methods. This effort was further bolstered by JumiaPay, a cashless payment option which aligned with the governments' bid to reduce the risk of virus transmission through physical cash.

Huge chunk of SMEs in Africa operate in the food and beverage sector which is a very important segment of the African economy. Jumia Heroes were crucial to the survival of the segment during the year, as Jumia Food supported them to stay in business during the pandemic. Jumia Food also partnered with groceries and supermarkets to leverage its platform in reaching consumers and grow their businesses.

“COVID-19 pandemic made it clear that Jumia Food’s service was not just a convenience but an essential service that bridged the gap for consumers between getting hot meals & food delivered to their homes while still staying safe and limiting physical contact. It was also a critical lifeline for many restaurants that might have been forced to go out of business when they could no longer operate. Jumia Food made it possible for them to shut down physical restaurant space but keep their kitchen open and serve consumers who order through Jumia Food app,” said Chairwoman of Jumia Nigeria and group Head of Institutional Affairs, Juliet Anammah.

Jumia’s mission of connecting consumers and sellers is anchored on solving distribution problems in Africa. With the effort of Jumia Heroes, the company provided a logistics network for third party sellers to get products delivered to consumers. Under the Jumia Heroes initiative, Jumia coordinated the distribution of essential materials to healthcare facilities and workers, leveraging the company’s last mile distribution. The company also donated certified face masks to Nigerian Health Ministry, while Jumia logistics networks were also used by several African governments to distribute health pamphlets and key products to where they were needed.

The year 2020 showed and further elevated the role of the often neglected efforts of logistics and delivery agents. Their role received the essential tag it has always deserved, as they were crucial to keeping what was left of business activities in the heat of covid-19 crisis. For Jumia, these workers were branded Heroes and their efforts will continue to be appreciated even in the post covid era.

Online retail platforms served as a major conduit and sustaining factor for several businesses in the heat of covid-19 lockdown. While offices, shops and many small enterprises were shut out of business, firms with digital footprints were able to connect with customers and get orders delivered with the help of delivery agents. Businesses without digital presence were thus forced to rethink their models for survival.

For food and grocery enterprises, ecommerce platforms were key for their survival, as sit-in services were prohibited with customers restricted by social distancing rules. It was a period where more customers boarded the ecommerce food service train. Several local restaurants partnered with Jumia to keep their food, beverage and grocery service going during the lockdown. One of such businesses is Sooyah Bistro owned by popular Pop Singer Bankole Wellington.

“The lockdown was an incredibly challenging period for most people and businesses alike. Sales dropped drastically, companies shut down, and a lot of people lost their jobs. We're grateful that Jumia kept their operation going; it was reassuring to customers, helped give them options for food at a very uncertain and difficult time, and for vendors like us, it was a huge help to still be able to keep sales going during that period.

The one thing we didn't want to have to do was to do a mass layoff like a lot of other companies; at that point it wasn't so much about making profit, as it was about making payroll. And even though we ran a limited operation during the lockdown, the sales we got through Jumia helped greatly in keeping our employees paid, and our operation running,” said the singer.

Other restaurants such as Chicken Republic, Sweet Sensation, Kilimanjaro, Drumstick, to mention a few, have also embraced Jumia to reach more customers. The progress made in the online food community during the lockdown was captured in the recent food index report released by Africa’s leading e-tailer, Jumia.

As contained in the report, grocery retailing continues to expand, as consumers seek comfort and convenience when shopping for food. Online food delivery is gaining momentum through companies such as Jumia Food. Quoting the report, “the food segment was the market's most lucrative, with total revenues of $33.7bn, equivalent to 75% of the market's overall value. With the outbreak of the COVID-19 pandemic, the demand for food rose significantly, especially online food delivery as a result of the lockdown and social distancing guidelines. Many people relied heavily on food delivery as opposed to shopping in grocery markets.”

The Sooyah Bistro boss was upbeat about the future of food delivery service in Nigeria which according to him will be hugely influenced by technology and its accompanying marketplace platforms. “I think one of the trends that we're seeing on the rise is the demand for food delivery services. That was already the case prior to the Covid-induced lockdown era, but the lockdown certainly escalated it exponentially, especially in a metropolitan area like Lagos, the traffic challenges alone are enough to encourage people to stay in the comfort of their homes and offices and have the food come to them. We're even seeing an uptick in people who choose to use Grocery delivery services as well.

“There’s also an increase in food trucks, pop-up restaurants, and quick service food options. I think the use of technology, especially as regards delivery services and retail/point-of-sale/inventory management systems will continue to be the number one game changer in the Nigerian Food scene. Another point is food restaurants embracing social media to engage their customers, and customers embracing their favourite food brands online as well. About a year or so ago, we only had a little over 1,000 followers on Sooyah Bistro's Instagram handle. Right now that number is at about 21,000 - so brands like ours are embracing social media as a way of telling our stories, communicating our culture and connecting with our customers, and the customers themselves are being receptive to engaging with their favourite food spots in that way,” he said.

Black Friday, the biggest sales event of the year, has come and gone. In the aftermath, global sale platforms, as well as sellers are taking stock of sales proceeds, customer reach, engagement and leverage the shopping window has given their various brands in what has been a rollercoaster year for brands and businesses, no thanks to covid-19 pandemic.

The story is not different for Africa's leading etailer. During the 2020 Black Friday window, Jumia had a record of huge consumer engagement, improved customer adoption of on-platform payment app, and commendable growth for sellers across all product categories on the platform.

As revealed by the e-commerce brand, over 113 million customers visited the Jumia platform during the 2020 black Friday, with over 1.5 billion page views were recorded during the period. The 2020 Jumia black Friday videos had three times more views than the 2019 edition, with over 99 million views recorded.

On delivery front, customers also experienced improved speed on delivery of their orders. Over 4.8million packages were handled during the Jumia 2020 Black Friday period, with over 55% of the packages reaching customers in less than 24 hours.

It was also a period of record sales and growth for sellers on the platform. According to Jumia, over 41,500 sellers used the platforms to reach millions of customers during the period. A record 141% Year on Year growth on the number of items sold from top 20 sellers during the event, as international brands such as Nike, Samsung, P&G, Unilever, Coca-cola, Nestle and Nokia, all partnered with Jumai for the Black Friday sales.

Items sold in the top products category on the platforms were also on a record high, as fashion products led the sales record, followed by beauty, home, FMCG and phones products respectively.

“Jumia Black Friday is an opportunity for us to ensure that customers have access to our essential products through Jumia during the Covid-19 period,” said Afan Ownwardi, Reckitt Benckiser Nigeria.

Jumia’s fintech product, JumiPay also recorded customers adoption growth of over 55% compared to the 2019 Black Friday sales, with 34% of orders paid for via the JumiaPay app during the 2020 Black Friday.

With an estimated population of over 200 million people, representing 2.5% of the global population, Nigeria is a readymade market for food and beverage related business. Buttressing this is the popular Nigerian saying that ‘you can’t do food business and run at loss, especially in commercial nerve cities like Lagos and Port Harcourt. In the Nigerian food and beverage market, the food segment was the market's most lucrative, with total revenues of $33.7bn, equivalent to 75% of the market's overall value.

In recent years, the increasing rate of internet migrants, the emergence of a tech-savvy generation known as millennials, and the ever-busy working class in traffic-congested cities like Lagos, has further expanded the food and grocery business, as consumers seek comfort and convenience when shopping for food. And with the outbreak of the COVID-19 pandemic, the demand for online food delivery rose significantly as a result of the lockdown and social distancing guidelines. Many people relied heavily on food delivery as opposed to shopping in grocery markets.

Consequently, online food delivery gained momentum through companies such as Jumia Food. Ecommerce platforms have become the major connection between numerous buyers and sellers. “Our partnership with Jumia has consistently provided us with an opportunity to expand our existing customer base, attend to the dining needs of our customers at their convenience and in an efficient manner and reward our customers for continually trusting us,” said Ufuoma Ogeleka, Head of Marketing, The Place Restaurant while speaking on the benefit of Jumia partnership with the restaurant.

Other restaurants such as Chicken Republic, Sweet Sensation, Kilimanjaro, Drumstick, Sooyah Bistro to mention a few, have also embraced the ecommerce platforms like Jumia to reach more customers. According to Pop Singer and CEO, Sooyah Bistro, Bankole Wellington, online platforms such as Jumia were crucial to food business survival connecting with their customers during the lockdown.“Sales dropped drastically, companies shut down, and a lot of people lost their jobs. We're grateful that Jumia kept their operation going; it was reassuring to customers, helped give them options for food at a very uncertain and difficult time, and for vendors like us, it was a huge help to still be able to keep sales going during that period.

The sales we got through Jumia helped greatly in keeping our employees paid, and our operation running,” the singer said.It is expected that the online food delivery trend will become a common lifestyle among the emerging middle class population, with many relying on having their hot meals and groceries delivered at their doorsteps, as against going out to offline retail stores to purchase.

“In the coming years, we expect the internet will still have a very strong influence on overall customer decision making, an increase of self-serving order taking portals within the restaurants for walk-in and dine-in customers to become widely adopted and voice ordering integration to most mobile applications,” Ogeleka added.

The online marketplace is no doubt boosting local food sales for restaurants, as new generations of Nigerian middle-class consumers are spending more money on food and grocery products, thereby helping to fuel growth in the market. With proper support, the apparent boom in the sector will rub off positively on the agricultural sector with creation of more jobs and massive food production.

Technology based businesses received a huge boost in 2020 and businesses without digital footprints were forced to review their operation model, as Covid-19 crippled global economic activities for most part of the year. Most of these tech-inclined shifts will become part of the new normal. Ecommerce gained more traction in advanced and developed markets. Many small businesses had to embrace ecommerce to stay afloat, while global brands also formed strategic partnerships with major etailers to reach their numerous customers.

In Nigeria and by extension Africa, the increase in the online food and groceries shopping was conspicuous. Though online food ordering has been part of the African ecommerce community, in recent times it became a trend to reckon with during lockdown and local cuisines displayed the prospect of being a major catalyst for growth in the food cum agricultural sector of African countries if properly harnessed.

“I think one of the trends that we're seeing on the rise is the demand for food delivery services. That was already the case prior to the Covid-induced lockdown era, but the lockdown certainly escalated it exponentially. More and more, partly for safety reasons, and for convenience, consumers are opting for food delivery options as opposed to take out or eating-in. We're even seeing an uptick in people who choose to use grocery delivery services as well,” said Pop Singer and CEO, Sooyah Bistro, Bankole Wellington.

An online Food Index report by Africa’s leading ecommerce platform, Jumia showed that the online food ordering in Africa is at a rapid development speed. According to the report, the growing popularity of fast food, coupled with the growing trends for convenience and value for money, have opened up opportunities for the food market in Nigeria. Consequently, the food and grocery retail market had total revenues of $44.9 billion, representing a compound annual growth rate (CAGR) of 8.7 percent in the last eight years.

Interestingly, the report revealed that local Nigerian cuisines lead the preference on Nigerians compared to continental dishes, with 64% of orders being placed for lunch. “In top Nigerian cities: Lagos, Abuja, Port Harcourt and Ibadan, local meals remain the most popular on the Jumia platform, while foreign foods such as Pizza, Chinese and Shawarma are growing fast as Nigerians explore various meals available to them. The Place, Kilimanjaro, Sweet Sensation and Drumstick are the most popular local food vendors due to the affordability of their offers, while Kentucky Fried Chicken (KFC), Cold Stone Creamery and Pizza Hut come out as the most popular international brands in the country,” the report read in part.

Jumia Nigeria CEO, Massimiliano Spalazzi said local meals will be vital for the future of the online food market in Nigeria and many people will rely heavily on having their hot meals and groceries delivered at their doorsteps, as against going out to offline retail stores to purchase. The government of each country continues to deal with the pandemic in the best ways possible. Yet, even after the pandemic is gone, the convenience of food delivery will still hold such a great appeal. More consumers will therefore look to Jumia as a reliable alternative to staying safe and saving money. Local Nigerian meals will continue to be among the top three cuisines being ordered because of its affordability and appeal to the local communities. Subscription model will change as many food vendors will partner with existing models such as Jumia Prime.

The year 2020 has been a year like no other, no thanks to Covid-19 pandemic and the accompanying restrictive measures which unleashed a far-reaching socio-economic impact on businesses globally. Firms and businesses were sent to survival mode while many who couldn’t cope were forced out of business. Most affected are Micro Small and Medium sized enterprises (MSMEs) who are the major economy drivers.

Interestingly, the year also turned out to be the one where the world came to a consensus on the importance of technology to the human race. In the heat of lockdown and social distancing measures that limited human physical contact and activities, technology based services served as the bridge between the virtual and human divide.

At the time when guidelines were strict, consumers stayed home and did their shopping online. Ecommerce and its chain of services were crucial to survival across the globe. Logistics services of ecommerce platforms partnered with governments, especially in Africa, in the movement and distribution of drugs and other medical equipment during the lockdown. Purchase and delivery of essential products were made accessible and affordable to customers via platforms like Jumia during lockdown.

For small businesses, the framework for ecommerce operations which is flexible, cost effective, and offers wider reach- was crucial for their survival at the time. It will be recalled that big brands in the FMCG sector also deployed ecommerce to their advantage during the lockdown to reach a wider audience and make more sales.

As a result of the belt tightening implications of the pandemic, getting consumers to part with their hard earned money became tougher for brands and sellers. The pandemic orchestrated a change in consumer behavior guided by a shrewd spending pattern. For every penny spent, the best deal and value is demanded. There’s less spending with consumers prioritising the essentials. Smart businesses and brands were able to know that the best way to have a share of customers’ pockets is to offer them an avenue to spend less for more.

The topsy turvy economic year is however ending on an exciting note for customers and sellers alike. The final months of the year are known for shopping events and campaigns that serve as windows for sellers to reach more customers and in turn make more sales. One of such effective platforms is the Black Friday sales which is a global phenomenon. For Jumia partners, the last four Fridays served as an avenue to close the revenue gap created by the COVID-19 lockdown. The period also provided customers the opportunity to get better deals and save more on their choice products, as Jumia and other etail platforms partnered with global brands and SMEs to thrill customers with products at discounted prices.

Though Black Friday sales have ended on major ecommerce platforms, the sales have ushered in the season of giving, and the excitement is expected to continue into the festive period. And going by the trend of partnership and alliances brands continue to form with ecommerce platforms, the festive season holds thrilling prospects for ecommerce customers. The year 2020 despite all its uncertainties looks like ending on a winning note for both buyers and sellers.

When Philadelphia law enforcement officers used the term Black Friday to describe the chaos that ensued after suburban shoppers and tourists flooded the city on the day after Thanksgiving in the 1950s, little did they know that it will become a global phenomenon that will transcend decades. Such is the grip and prominence that several attempts to rename it Large Friday failed to stick. Black Friday has since evolved to become the biggest shopping event of the year during which retailers delight their customers with some of the best mouth-watering discounts on products and sellers smile to the bank with sales proceeds.

There’s hardly any period that gets customers in a buying mood than the popular Black Friday sales. To get a fair share of the sales, brands and sellers also make enticing offers to customers. Digital technology and ecommerce have further helped the course of Black Friday Sales. In the world’s biggest markets such as the USA and China, online shopping makes up a substantial portion of Black Friday shopping, as brands partner with the likes of Amazon, Alibaba, Ebay, and other big ecommerce platforms to connect with millions of customers across the globe.

In developing markets of Africa, leading ecommerce platform, Jumia is also leading the line to provide a thrilling Black Friday experience to customers on the continent. The platform commenced its 2020 Black Friday sales on the 6th of November, partnering with several big and global brands to provide customers the best possible deals and enable them to save more during the period. “The Black Friday campaign has been a success year-on-year, hence the reason we’re hosting it for the 8th time. We know customers are always on the lookout for the best deals and as such, there will be a significant increase in inventory across all product categories, flash sales on top SKUs. So It is also an avenue to give back to consumers by offering them amazing and cost-saving deals,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

Jumia has also partnered with thousands of sellers and brands on its platform to offer consumers a wide assortment of products ranging from groceries, electronics, home items; and special deals. Added to these are incentives on purchases. One of such is the opportunity for customers to get cheap or free delivery from brands and manufacturers partnering with Jumia for the sales period. Brands such as Unilever, Samsung, Absolute, Nivea and P&G are offering free and faster shipping.

Others eligible for free shipping include products from Coca cola, Reckitt Benkiser hygiene products, Nestle seasoning and beverage products, gadget products by Umidigi, and Apple.

Customers can also shop Jumia Express to benefit from the free delivery offer from these Jumia partners. Jumia Express offers faster delivery within 24 hours of placing orders. As part of the Black Friday deals, Jumia is giving Prime Plus subscribers the opportunity to save more even after the sales period.

Likewise, existing and new subscribers to the plan will enjoy up to 20% off on a 3 months package and free delivery on all local items and Jumia food orders. Customers can also leverage the Pick-up station option on the checkout page to pay cheaper delivery fees and also stand a chance of winning shopping vouchers.

With all the twists and turns of 2020, customers sure deserve an exciting end to this unique year. For those still interested in getting that choice of high-earned gadget and home appliances, the Black Friday shopping window is an ample opportunity for exciting purchases and deals. Ecommerce makes it easier and Jumia is just a click away.

By Ayomide Oriade

Life in the emerging post covid-19 era is proving as difficult as when the virus put a halt to economic and other aspects of human activities while at its peak. The pandemic is leaving in its wake economic realities the world might not recover from for a decade to come. To navigate this unanticipated reality, countries are reeling out shrewd economic measures which are resulting in diverse economic effects on their citizens. More stinging is the dire economic situation the pandemic enforced on the globe that everyone is becoming more frugal with what they dispense.

The situation on the home front is a vivid example. The pandemic hugely affected the income of Nigeria such that the federal government embarked on cost-effective measures on its spending. One of the direct effects of this on Nigerians is the removal of fuel subsidy. The price of PMS is therefore left to the market forces which make it more difficult for the government to regulate. In an economy dictated by oil prices, cost of transportation, food and other materials tend to respond to every pump price adjustment.

Residents of Lagos and other commercial hubs who rely on public transportation for their daily business activities will attest to the effect the recent fuel price hike has had on their pockets. Added to this is the stress commuters go through while paying this high transportations fare.

At a time like this, saving on transportation is one of the smartest moves to make and this is where an ecommerce bundle of services can come in handy. Especially for those in a city like Lagos, initiative that affords them one less thing to worry about will be appreciated. Convenience is the most talked about features of online shopping, but there are several other benefits consumers can leverage. Platforms like Jumia and konga are making shopping life easier for smart folks. No need to jump bus or fuel the car to get that everyday essential. From the comfort of the mobile phone, a customer only needs to place the order and leave the cost of logistics to the ecommerce platform.

There’s pressure to be competitive to get a fair share of customers' hard-earned money in today’s market and ecommerce firms are responding by offering more to customers through low cost or free shipment. For instance, to enable their customers to save more, Jumia now encourages their sellers and other big brands partners on their platforms to offer free shipping to customers. This is also being expanded beyond just promotional campaigns. To help customers save money on delivery fees, Jumia introduced Jumia Prime. Launched in June 2019, Jumia Prime is a membership programme that gives access to a range of digital services and offers from Jumia. Designed for frequent shoppers, Jumia Prime eliminates shipping fees, so members make savings every time they place an order.

Additional benefits included within Jumia Prime Membership are: free shipping on Jumia Express items, free delivery on Jumia Food orders, an IrokoTV package, Boomplay Premium Unlimited Listening, and many others.

Furthermore, online shopping grants access to cheap deals as products are put on sale directly from the manufacturers or sellers without the middlemen. A recent example of this is the recent Jumia Brand Festival where customers were able to buy directly from top manufacturers like Samsung, Nokia, Nestle and others. Also, online shopping saves you the pressure from sales representatives at brick and mortar stores.

Another huge benefit of online shopping is the opportunity to compare prices and research products. For instance, for a customer aiming to buy home appliances or gadgets such as phones and laptops, customer reviews are available to provide firsthand experiences and ratings as a guide. Also, online platforms provide a variety of product options that enable buyers to choose from a range of products, compare features, as well as prices. So why not save yourself the pain of spending that hard-earned money the stressful way by trying out the cost-effective offerings of ecommerce. Jumia and the likes are just a click away.

E-commerce platform Jumia Nigeria has announced the launch of a Food Festival Campaign which will take place from 2nd to 31st October. The campaign is organized in partnership with local restaurants such as Chicken Republic, Indomie Cafe, The Place, etc., and alcoholic beverage companies such as Diageo, Bacardi, Pernod Ricard and supermarkets, as well as blue chip international restaurants such as KFC.

As part of the festival, Jumia Nigeria will be hosting on its platform a wide variety of convenience food suppliers including grocery shops, bakeries as well as a broad range of restaurants and cuisines. Discounts of up to 50% discount and free delivery will be offered to consumers on food, beverages and supermarket purchases as part of the event. Additional 5% discounts will be made available on orders placed using JumiaPay.

The campaign which has a neighborhood focus will run primarily in Lagos, Abuja, and Port Harcourt, and will promote the adoption of meal and food ordering among consumers, which has become increasingly popular in the last few years in these major cities. The event will also support restaurant businesses and the overall food ecosystem, as these have been severely affected by COVID-19 lockdown restrictions, resulting in less capacity, fewer opening hours, and sometimes shutdowns.

“For this Festival, we’re focusing on 3 major neighborhoods or cities, such as Lagos, Abuja, and Port Harcourt. The Food Festival is a great opportunity for all food vendors in Nigeria – big and small, international and local – to engage with consumers online and offer them more convenience and value, in line with the theme of this year’s World Food Day celebration of Grow, Nourish, Sustain Together. We have been partnering with local restaurants and supermarkets, and some blue chip international restaurants for many years now. Many of them have been through tough times over the past few months and are still suffering from the restrictions imposed as part of COVID-19 measures. At the same time, consumers are more and more mindful of social distancing and increasingly turn to online delivery. We invite every consumer to try the service and by doing so also support local restaurants and food vendors, who are providing jobs to the communities,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

The COVID-19 crisis has shown the relevance of Jumia platform which offers a large selection of goods and services, at an affordable and a convenient contactless and safe experience. A growing number of restaurants are embracing the Jumia ecosystem to broaden their consumer reach during the COVID-19 pandemic.

“The Place is proud to be associated with the Jumia Food Fest 2020, as we are always eager to meet the dining needs of our customers while delivering great value with our products and services. The Food Fest gives us another opportunity to showcase our ever rich menu varieties; from our award winning asun, succulently grilled chicken/ turkey, our ever deliciously fried plantain, rich stir fry spaghetti, homemade African delicacies to our freshly baked snacks. Our Value Munch meals, which have become the rave of the moment not just for the price point (for as low as =N=500) but also for the quality of the offerings, would also feature during the Food Fest. All that is left for me to say, is: “Ensure you discover, re-experience, dine, delight in our rich and vast menu offerings over the course of the Food Fest and indeed every time you are in the mood for an enjoyable meal and treat,” said Marketing Manager for The Place, Ufuoma Ogeleke.

The Festival which will feature over 4,000 local and international restaurants and food stores, will be held in 8 countries (Algeria, Ghana, Ivory Coast, Kenya, Morocco, Nigeria, Tunisia and Uganda) where Jumia Food operates. Partners for the festival represent all Jumia Food categories including restaurant, supermarket, groceries, and pharmacies.

Nigeria’s no.1 online marketplace, Jumia has launched a Brand Festival campaign in partnership with top global brands such as Reckitt Benkiser, Unilever, Nokia, Intel, HP, Nexus, Hisense, Sharp, Samsung, Binatone, XIAOMI, ABSOLUT, Dettol, and Logitech.

The campaign which is scheduled to run from September 21st to 27th, will provide consumers access to top quality products directly from the manufacturers, eliminating all third parties, thereby reducing the cost of the products, which will enable consumers to save money.

Jumia Nigeria CEO, Massimiliano Spalazzi, said: “The aim of the campaign is to enable our consumers to save more money while getting the best quality products directly from the brand manufacturers. Consumers today are more conscious of the quality of the product they buy on Jumia, and at the same time want to save money while shopping. In the wake of COVID-19, we have continued to strive to operate so that consumers can continue to stay at home, use e-commerce to shop, and stay safe in this trying time. We are proud to partner with Unilever, Nokia and other top brands as part of our commitment to provide customers easy access to quality products directly from the manufacturers at best prices.

Head of Key Accounts and e-Commerce at Reckitt Benckiser Nigeria Ltd, Afam Onwordi, stated that: “We have enjoyed a good and healthy relationship with Jumia in the last couple of years. As our fight in RB is making access to the highest quality hygiene, wellness and nourishment a right and NOT a privilege, we would therefore always seize the opportunity of every major event like this (Brand Festival) to reward our consumers with interesting offers and deals across our wide range of products.”

Senior Business Manager at HMD Global, Emmanuel Ossai, said: “For us at HMD Global, the home of Nokia phones, we are very excited to be supporting Jumia on this festival for authentic brands in Nigeria. We have a commitment to continuously deliver value and believe that this partnership will afford Nigerians more opportunities to enjoy the beauty of quality hardware and the secure Android experience that we offer across our range of Nokia smartphones. Interestingly, we have new exciting devices that will be unveiled to our Nigerian customers in the coming weeks and we cannot wait for you to have a feel of hardware magic carefully combined with software excellence. So, keep watching this space.”

Jumia has announced that its anticipated brand festival has been scheduled to run from 21st of September to 27th of September. This virtual event will hold on the Jumia App and website, and it promises to be an explosion of fun-shopping, filled with great offers.

The Partners - Your Favourite Brands: Top brands like Unilever, Intel, HP, Nexus, Nokia Hisense, Sharp, Samsung, Binatone, XIAOMI, ABSOLUT, Dettol, and Logitech amongst others have been partnered with, to ensure that quality products are acquired at really low prices; Jumia is all about helping consumers to cut costs. The Jumia Brands Festival will be providing affordable kitchen and home appliances directly from manufacturers like Samsung, Hisense etc. Electronic gadgets; phones, laptops from brands like Apple, Dell, HP, infinix, Tecno, Itel, Oppo, Lenovo, Xiaomi, Macbook, Toshiba etc.

Jumia’s partnership with other exciting brands like Coca Cola, GB foods, Indomie, Unilever will be offering a wide range of different groceries. Camera brands like Canon and Nikon are also not left out in this festival, this offers photography lovers, bloggers, vloggers and everyone who has a thing for beauty, quality and aesthetics to be a part of this festival. Beauty and hygiene products from the likes of Nivea and Huggies are also not left out of the festival.

Shoppers will spend less to buy more: Consumers will be getting their products directly from the manufacturers without the presence of a middleman, which on most occasions leads to higher charges. Purchase will be directly from brands on the Jumia platform and this will enable consumers to save money. There will also be fashion items infused in the festival, big fashion brands for men and women respectively.

It even gets better as all of these offers also come with free delivery, there’s a warranty on appliances and best of all, Express Delivery to ensure same day or next day delivery of products ordered.

Jumia assures consumers of the authenticity of products as it’s coming directly from brand manufacturers, products will be delivered in perfect conditions and, there’s an extended return policy to ensure the satisfaction of consumers. There will also be other side attractions like flash sales, giveaways, anchor deals etc.

Many will agree that the stock of digital businesses have risen tremendously in the wake of Covid-19 pandemic. The crucial role played by technology and ecommerce during the lockdown has further opened up the space for more possibilities.

For many small and medium scale businesses that managed to survive economic hiccups in the heat of the pandemic, digital presence and relevance is prescribed as one of the ways for sustainability in the emerging new normal. For customers alike, many of whom have been affected by job losses and reduced income, cost effectiveness is key on every expense.

Ecommerce is a bundle of effectiveness, convenience, reach and safety which is crucial in this time of belt tightening and economic uncertainty. With online marketplace, shopping is made easier. Customers can purchase items from the comfort of their own homes or workplace. Online shopping saves time and customers do not need to stand long queues especially in this time of covid and distancing guidelines. Also, no time barrier as the online store is open 24/7.

While convenience appears to be the most talked about features of online shopping, there are several other benefits consumers can leverage at this time. Shopping online opens customers to a wide display of products. You can find almost any brand even as far as international brands. The platforms allow you to shop from retailers in several states. Platforms such as Jumia, Konga, Jiji, showcase a variety of products from their stock and various stores. In some cases, customers are allowed to even make orders for out of stock items and are shipped to them when they are available.

Furthermore, online shopping saves money. Cheap deals and better prices are available on ecommerce platforms as products are put on sale directly from the manufacturers or sellers without the middlemen. Added to this, online shopping saves you the pressure from sales representatives at brick and mortar stores.

Another huge benefit of online shopping that is not mostly talked about is the opportunity to compare prices and research products. For instance, for a customer aiming to buy home appliances or gadgets such as phones and laptops, customer reviews are available to provide firsthand experiences and ratings as a guide. Also, online platforms provide a range of product options that enable buyers to choose from a long list of products, compare features, as well as prices.

“We are always informing our sellers on why they need to provide value to customers with competitive pricing. What customers want especially at this period is the best deal at affordable prices. They will go for products that help them save more, and one of the advantages of online stores like Jumia is to provide a wide range of assortments to customers at the best market prices possible,” said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.

And sending gifts is much easier with ecommerce with comfort and ease. It also helps sustain the element of surprise as well. The e-retailer does all the packaging and shipping. In some cases, some brands wrap your gifts to make them special before delivering to your loved ones.

With all the features of ecommerce, it appears online shopping is a smarter way to go around purchase activities at a time when every Nigerian wants the best deal on every naira and kobo spent.

Job cuts, layoffs, wage cuts, and employee redundancy have continued to exacerbate as the coronavirus (COVID-19) pandemic and its resultant global economic recession continue to take its damaging toll on our socio-economic life, the economy and every other human activity across countries.

According to the recent update by the International Labor Organization (ILO), between April - June 2020, the world lost almost 400 million full-time jobs due to the pandemic. Almost 59% of full-time jobs have been exterminated in the Asia-Pacific region, while South Asia accounted for 110 million of the total 235 million full-time jobs lost this quarter. Latest World Bank data shows unemployment caused by the crisis led by the COVID 19 has been the most poignant than any other crisis in history. In fact, the unemployment caused by the Global Financial Crisis of 2008 led to an unemployment rate of 6% globally as compared to 7.2% of the unemployment rate caused by the coronavirus.

In a recent survey conducted by the World Bank, at least 42% of people surveyed in Nigeria have reportedly lost their jobs during the coronavirus pandemic, while 79% reported a loss in income. The report claims that due to the COVID-19 outbreak, some five million people fell into poverty as the effects of the virus batters the West African country’s economy, the World Bank said on Thursday.

The shock caused by the pandemic, compounded by a global oil collapse, has hit Nigeria hard, especially considering the country is Africa’s largest economy mainly because it is the continent’s top crude producer.

According to Reuters, Nigeria also has the highest number of people living in extreme poverty in the world and has not recovered from the recession in 2016.

The World Bank forecasts Nigeria’s economy will shrink 3.2 - 7.4% this year, depending on the severity of the COVID-19 outbreak. In a worst-case scenario, the recession could continue into 2021 when the economy could contract 2%, it said.

With the backdrop of this grim reality, it was critical to the survival of the economy that the system evolved to protect jobs and source of income. With the nation locked-down in a bid to contain the spread of the virus, businesses were shut which meant dwindling income. In the face of the gloom and impending recession that stared us in the face, the e-commerce industry stood up to keep the Nigerian economy afloat at this time, especially as it stood tall to serve as a buffer for hunger, starvation and job creation as demand for essential daily needs rose and scarcity of goods and services kept mounting.

Sick people will need someone to get their prescribed drugs to them at home to prevent more deaths than COVID-19 would have caused. Families must restock as the supply of food and toiletries will run out someday soon, so they need to shop online and get their supplies delivered to their homes.

In the thick of Covid-19 lockdown, e-commerce giants like Jumia provided logistics firms and workers with a massive platform to keep their jobs, income and to keep what has left of the economic activities afloat, while ensuring people got essentials delivered to them while in safety. This platform provided by the likes of Jumia and others opened up a new horizon of opportunities for the dispatch riders as their services were now sorted by the government for the delivery of essentials to health workers and centres.

The investment of e-commerce companies like Jumia created an amazing income flow for the logistics firms. According to the financial figures released by Jumia, the company processed millions packages in Nigeria and were able to achieve 25% deliveries in rural areas through a network of over 20,000 J-Force agents, over 2,000 employees and thousands of logistics service providers within its integrated network of logistics providers, among whom are delivery agents.

When the Lagos State Government laws on commercial motorcycle riders in the Lagos metropolis was implemented, some of bike-hailing companies such as MaxOkada, Opay and Gokada were badly affected and many youths who had found employment succour in these investments lost their jobs. Renowned e-retailer, Jumia, quickly struck a partnership with Gokada to meet increasing delivery demand for Jumia Food. Tens of thousands of jobs were saved and created, the income of families preserved while the economy stayed afloat with small businesses in the food and health chain were running by e-commerce.

By Emmanuel Nwachukwu

An event that has dictated the pace of the world for over five months will definitely leave its mark on time. It is an open secret that the post-COVID-19 world will not be the usual terrain. As social and economic activities gradually resume, and the world gradually heals from the torment inflicted by the virus, integral aspects of human activity that will be redefined are business, commerce and customer behaviour. These aspects will be greatly impacted by new trends.

Lockdown and restrictions during the pandemic brought new customers onboard the e-commerce train. Hence, the emerging post covid era is proving to be a period of boom for e-commerce globally and on the African continent, as more small and medium scale businesses are moving online. Months ago, when guidelines were stricter, consumers stayed home and did their shopping online, many customers have however kept the trend going, resulting in increased e-cart checkouts.

Global brand Amazon reported net income of $5.2 billion in Q2 2020, while total revenue grew by 40%. Asian market leader, Alibaba recorded 34% revenue growth and net income of $6.b billion. In Africa, leading e-commerce platforms Jumia also recorded more orders and patronage. For instance, when Jumia released its 2020 Q1 report, the scorecard showed that the company thrived during the pandemic and is optimistic of a positive Post Covid era as its losses begin to shrink.

Competitive pricing which contributes to customers making huge savings on online marketplace like Jumia appears to be a driving force in their recent performance. They not only provide unlimited products, but also offer lower prices which proves useful for consumers at a time like this. There are several options available to compare prices from different stores and manufacturers. Jumia also democratizes the prices of products on its platform by championing a healthy competition among the sellers.

Aside from the comfort and low price offerings being major catalysts, mobile commerce culture also received a boost, which is to the advantage of ecommerce platforms. According to Statista, mobile commerce is expected to account for 72.9% of all e-commerce by 2021. The projection is already proving a possibility, as more customers become comfortable

with the new options available on their smartphones. Recent reports showed that transactions on Jumia’s fintech product, JumiaPay reached 2.4 million, a year-over-year increase of 36%, representing 35.6% on-platform penetration in terms of orders. The majority of the orders were via mobile application.

Another major aspect that ecommerce has benefited from the pandemic is the hygiene culture. Governments around the world are gradually easing restrictions to revive economic activities, but are still very skeptical about the numbers in gatherings and physical stores. The implication of this is that businesses that prioritize hygiene measures and integrate sanitation with operations will gain customers’ trust and patronage.

“The onset of the Covid-19 pandemic in the first quarter of 2020 brought about a complex combination of health, economic and operational challenges. Our first priority was to help our employees, consumers and communities stay safe. On the operational side, we took prompt action to ensure business continuity and adjust our logistics to meet high standards of safety and hygiene,” said Jumia’s Chief Executive Officer, Jeremy Hodara. Many customers are still conscious of the threat of covid19 and thus opt for ecommerce which gives them shopping experience from the comfort of wherever they are.

From all indications, Covid-19 and the social distancing guidelines will leave behind a new business order and customer behaviour which will be driven by digital processes. Shoppers across the country are looking for online marketplaces that can provide the best savings, as offline shopping continues to prove difficult in view of the social distancing regulations. Already, Jumia has carved a niche for itself by consistently providing consumers access to a wide array of products at the most affordable rates similar to offline markets, and in some cases better than offline markets.

Emmanuel Nwachukwu, a Business and Communications Strategist writes from Lagos

Covid-19 pandemic has left the world in dire straits by causing a recession from which global economies will have to wait till 2022 for recovery. The World Bank 2020 Global Economic Prospect, June 2020, forecast that the pandemic will plunge all countries into the worst recession in history. The United States’ economy slipped into recession due to the coronavirus crisis. Canada, Germany, France and Japan have all been dealt with strong economic blows. Bringing it home, Nigeria’s Minister of Finance, Zainab Ahmed recently said Nigeria is heading towards recession unless the country achieves a very strong Q3 economic performance.

The implication is that business leaders have to navigate shattered expectations and continued uncertainties. For the government, big spending is required to stimulate the economy, but while at it, shrewdness should be the keyword. Funding gaps must be identified to prevent all sort of wastage.

This model applies to consumers as well. The downside, however, is that many unemployed Nigerians, who have lost their livelihood during the crisis are broke, don’t have enough money, and spend the little they have on the basic essentials. The lucky ones who still have a job tend to take cost-cutting measures by reducing expenses and unnecessary spending.

Therefore, Nigerians today look for the best bargain on every naira and kobo spent and this is where cost-effectiveness of online marketplace can be of help. Though many still have their reservations about online shopping, it is fair to say that eCommerce is gaining more patronage by the day in Nigeria. Platforms such as Jumia, Konga, Jiji, showcase a variety of products from their stocks and various stores. Customers have thus availed the opportunity of browsing to select products according to choice and latest trend.

Online marketplace not only provides an unlimited array of products, but they also offer lower prices. There are several options available to compare prices from different stores and manufacturers. E-retailers also offer discounts on different products. Going for online shopping can be a cost-saving move at this time. Mind you, lower price on eCommerce platforms doesn’t translate to lesser quality. It is part of eCommerce strategies for competition. For instance, Jumia often informs sellers on their platforms on the need for competitive pricing. “We are always informing our sellers on why they need to provide value to customers with competitive pricing. What customers want especially at this period is best deals at affordable prices. They will go for products that help them save more, and one of the advantages of online stores like Jumia is to provide a wide range of assortments to customers at the best market prices possible,” said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.

Those who bank on public transportation for their daily work and business routine would agree that the fares have increased on virtually every route, especially in commercial hubs like Lagos. This is largely due to the limited number of passengers a bus or and tricycle can carry per trip. Hence, the convenience of eCommerce can help save the cost of transportation and associated traffic stress. Online shopping provides you services from the comfort of wherever you are with mobile internet without the worry of working hours. eCommerce platforms run their logistics networks that cover transportations and delivery of your products even at a lesser cost when compared to present-day public transportation fares.

What you want to avoid like a plague, for now, is compulsive shopping. While physical stores have assistants that can lure you into buying what you don’t need or want to buy, such distractions or pressure are not present at online stores. You shop at your pace and don’t need to think twice before logging out if you can’t find what you need. Added to this is the discrete shopping experience. Online shopping provides you with the privacy that protects your choice from the public, especially on sensitive products. Product packaging is done in a way that even the delivery agent can’t identify what’s in the package.

As we all embrace the new normal and its biting economic realities, native knowledge requires frugal spending. A leeway out for businesses and customers alike especially will be to leverage the digital offerings such as eCommerce.

By Emmanuel Nwachukwu

There is no gainsaying that our world has changed immeasurably in recent since the turn of the year as the globe tries to reboot after coronavirus pandemic shuts down country after country. We can’t place a value on the human toll; that will be incalculable. But there has and experts say, will be a more substantial economic toll globally.



Staying alive and helping keep others alive is the top priority right now. A recent GfK survey shows that regular use of hand sanitizer, purchase of toiletries like soaps, disinfectants nearly doubled between early and mid-June. Stores and workplaces are performing extra cleaning processes and requiring physical distancing behaviour. Manufacturers are retooling to produce sanitation and medical supplies.



Regular healthcare visits to health centres are on pause – or going online. Even as healthcare systems become overloaded with coronavirus pandemic patients, other health problems are not disappearing, and a growing number of people are turning to telemedicine options.

In the long run, the outbreak may turn out to be a turning point for telehealth, making it a greater part of healthcare solutions. Post-COVID-19 consumer behaviour may rely more on chemical sanitation and cleaning products in the short term, but a long-term trend toward green and natural products is likely to regain momentum eventually. And the general global trend toward a health approach based on prevention more than treatment will undoubtedly continue.



Stores are now open but are consciously are doing their best to safeguard employers and customers by offering take-out, drive-through, and delivery services. Even service providers such as hotels, restaurants, lounges and photographers are getting creative and employing some of the same approaches. Twitter announced that some of its employees could permanently work from home, while Google announced that the company employees will work from home until at least the summer of 2021. Sony Music, Amazon corporate, and Royal Bank of Scotland have also told their employees to work remotely till 2021. Big religious organizations like Daystar has announced that their services will remain solely online until further notice.

The covid-19 pandemic has brought the world economy to its knees and the vast majority are faced with uncertain times, in which many find themselves either unemployed or at the risk of losing their job.

Many unemployed Nigerians, who have lost their livelihood during the crisis, are broke, don’t have enough money, and spend the little they do have on the basic essentials.Even the lucky ones, who still have a job, tend to take significant belt-tightening measures and try to reduce expenses and unnecessary spending.



Under such circumstances, a significant chunk of the population has adopted new purchasing habits focused on buying only the basics, like groceries, medical and safety supplies, essential household goods (like cleaning supplies), and baby products. Since so many brick-and-mortar businesses are operating at reduced capacity after months of a total shutdown to ensure customer and staff safety, either voluntarily or due to official restrictions, more people are forced to buy online.



In addition, consumers who are trying to remain safe and follow NCDC, Federal and state health ministry guidelines are staying away from supermarkets, malls, and other busy public places and spending more time at home, away from the crowds. Who benefits from the profound changes in consumer attitudes and behaviours? The e-commerce industry. Even when authorities' restrictions have been loosened or completely lifted, many people are still choosing to act prudently and avoid risks – a sentiment that pushes many of them to continue to prefer online shopping over purchasing from physical points of sale in their area.




On August 12, 2020, eCommerce giants Jumia released its Q2 report which showed that the number of active customers, orders placed and Gross Merchandise Value showed a significant increase for the quarter. The report showed that annual active consumers reached 6.8 million, a year-over-year increase of 40%, while orders one the platform grossed 6.8 million, a year-over-year increase of 8%. Experts predict that this COVID-19 consumer behaviour may “stick” long after the crisis ends.



JD.com, China’s largest online retailer, has seen sales of common household staples quadruple over the same period last year. A survey by Engine found that people are spending on average 10-30% more online.

People are homebound and no longer pursuing external entertainment options that there is an increase in digital streaming services. In addition to streaming services like Netflix, Amazon, Hulu, and Disney+ seeing atypical gains in subscribers in the first quarter of 2020, non-traditional streaming services like movie studios are releasing media streaming, on-demand, sometimes earlier than projected release.



As the situation begins to normalise, brick and mortar shopping will pick up again, but it is unlikely to be enough to cover lost sales in the coming weeks/months. With an economic recession looming, sales revenues from both food & beverage and other sectors are likely to be under pressure. Food, beverage, medical supplies, groceries and other companies should revisit their sourcing strategies, rationalize their product ranges, and assess the resilience and agility of their supply chain as well as their route-to-market channels. E-commerce and distribution networks should be optimised and streamlined considering the impact of changing commodity prices and other costs-to-serve, as well as ways to increase demand, companies will be forced to revisit their pricing and promotion strategies. Also, given the dip in oil price, potential loss of jobs and pay cuts, demand for food & beverage, medical and grocery products is expected to remain low and even worse for non-essential products. Luxury/aspirational purchases will also likely trend downwards. The price will become an even more critical factor, thus food & beverage companies will need to focus strongly on consumer needs.



As consumers become more price-sensitive, short peaks in consumer demand are likely in certain categories once the situation starts to normalise. However, an economic recession looms, as consumer spending is expected to decline in the medium term. Consumers will continue to shift to online sales, which will require Consumer Product companies to revisit their B2C (Business-to-Customer) strategies. As (and when) manufacturing capacity returns to normal levels, a backlog of orders will need to be cleared, putting further pressure on supply chains. As a result, alternative sourcing options will need to be explored.



Considering the impact of changing commodity prices and other costs-to-serve, as well as ways to increase demand, companies will be forced to revisit their pricing and promotion strategies.

The change in consumer behaviour is also leading a reaction from global brands. The last few weeks have seen many sellers and buyers shift their attention from offline to online for strategic partnerships. Leveraging e-commerce platforms some global brands including Coca-Cola, Procter & Gamble, Mastercard etc moved their products and services to the Jumia platform, either showcasing their products on the Jumia Mall or advertising their products on the Jumia Marketplace and benefiting from the Jumia’s wide reach and logistics operations. Small retailers who had to embrace the online store platform during the lockdown are also experiencing a continuous shopping trend by customers.

This reality may represent the pressure businesses have to deal with and the path consumers have to thread at the moment for adaptation. But if sustained, they might end up becoming best practices capable of causing the fast resuscitation of our recess economy. Regardless of whatever measures people ultimately take, it is clear that the coming weeks or months will determine a lot.

Emmanuel Nwachukwu, a business and communications strategist writes from Lagos

Africa’s leading e-commerce platform, Jumia recently announced its financial results for the quarter ended June 30, 2020 with the report showing significant progress on the path to profitability.

In the highlight of the report, Jumia recorded improvement with an increase in gross profit and a decrease in operating loss compared to previous year. As contained in the report, gross profit increased by 38% to €23.3 million in the second quarter of 2020, from €16.8 million in the second quarter of 2019, while Operating loss reduced to €37.6 million in the second quarter of 2020, decreasing 44% on a year-over-year basis.

The increase in profit according to the company, was a result of the increase in marketplace revenue, which reached €23.6 million in the second quarter of 2020, up 38% compared to the second quarter of 2019. During the second quarter of 2020, Gross profit after Fulfillment expense reached a record €6.0 million compared to a loss of €0.7 million in the second quarter of 2019, demonstrating continued unit economics improvement as we grow usage on our platform.

“We have made significant progress on our path to profitability in the second quarter of 2020, with Operating loss decreasing 44% year-over-year to €37.6 million. This was achieved thanks to an all-time high Gross Profit after Fulfillment expense of €6.0 million and record levels of marketing efficiency with Sales & Advertising expense decreasing by 51% year-over-year. We are navigating these uncertain times of COVID-19 pandemic with strong financial discipline and operational agility which positions us to emerge from this crisis stronger and even more relevant to our consumers, sellers and communities,” commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.

The company also made progress in usage growth as, number of active customers, orders placed and Gross Merchandise Value showed significant increase for the quarter. The report showed that annual active consumers reached 6.8 million, a year-over-year increase of 40%, while orders one the platform grossed 6.8 million, a year-over-year increase of 8%. GMV was €228 million, a year-over-year decrease of 13% compared to GMV in the second quarter of 2019.

The company’s payment service, JumiaPay also recorded impressive improvement figures, as Total Payment Value surged by 106% from €26.0 million in the second quarter of 2019 to an all-time high of €53.6 million in the second quarter of 2020, surpassing the record set during the fourth quarter of 2019 of €45.6 million. Likewise, on-platform penetration of JumiaPay as a percentage of GMV increased to 23.5% in the second quarter of 2020, more than twice the level of penetration in the second quarter of 2019 of 9.9%. Transactions on JumiaPay reached 2.4 million, a year-over-year increase of 36%, representing35.6% on-platform penetration in terms of Orders.

Sales and advertising expenses decreased by 51% from €14.9 million in the second quarter of 2019 to €7.2 million in the second quarter of 2020, its lowest level in more than 3 years. Adjusted EBITDA loss stood at €32.9 million in the second quarter of 2020, decreasing 26% on a year-over year basis.

As the world celebrates the 2020 International Youth Day today, the need for youth empowerment will for sure hit the front burner even in the midst of global chaos caused by the COVID-19 pandemic.

The 2020 IYD celebration with the theme “Engagement for Global Action”, seeks to highlight how young people can be engaged at local, national and global levels to reduce democratic deficits, increase fairness in political processes and contribute to better and more sustainable policies.

It is no longer news that jobs have been lost and the world faces harsh economic realities as we learn to live with the novel virus. A committee on Economic Sustainability Plan led by Vice President Yemi Osinbajo recently warned that 39.4 million Nigerians might be unemployed by the end 2020. The federal government recently unveiled plans to employ 1,000 persons each from each of the 774 local governments in the country. In the same vein, the federal government post COVID-19 Economy Recovery Plan is said to be targeting 5 million jobs. In the midst of it all, giving youths, who constitute the majority of Nigeria’s population a fair economic share has always been a clamour.

While we keep on the demand for inclusion of youth in formal political mechanism, it is worthy of note that ecommerce can help change the narrative about opportunity, inclusion and balance in the Nigerian economic landscape for Nigeria’s teeming youth population. A joint research by the World Bank and Alibaba Group revealed that ecommerce can be a powerful instrument for employment for semi-skilled workers and women in developing countries and in rural areas. These are general traits of Nigeria and African countries in general.

Conversely, job creation figures of leading global ecommerce brands should be an encouragement for more focus and investment in this sector of the economy. America’s Amazon disclosed recently that over one million small businesses on its platform have created 900,000 jobs. The Amazon brand alone has over 100, 000 employees on its payroll. Today, China has the fastest and largest growing ecommerce market in the world, accounting for more than 40% of the total value of ecommerce transactions worldwide. Simply put, more than 5% of employment in China is in ecommerce. These contributions are however tied to years of deliberate support and infrastructure investment which aided ecommerce.

One might wonder how an industry that limits human contact holds such a huge employment prospect. A local example thus suffices. Jumia currently has over 15,000 sellers on its platform, with 80% being SMEs. Despite the fact that contact and face-to-face interactions are limited in the ecommerce service space, the interconnectedness of the industry requires that thousands of individuals work behind the scenes to ensure orders are processed seamlessly to customers’ preference and satisfaction. Aside from customer service representatives who interact with customers, take orders and customer complaints, the shipping clerks, order fillers, hand packers, packagers, keep records and ensure orders are properly packaged and in good condition for transportation.

Apart from managers who oversee the daily operations in warehouses, there are also the market research analysts who study market conditions to examine potential sales of products. Ecommerce thrives on technology, which thus provides job opportunities for young application software and web developers who create programmes and also handle online stores technical aspects.

Also critical in the chain are the last mile delivery agents. The immense employment and growth impact of ecommerce on logistics cannot the overemphasized. The recent boom in logistics business in major economic cities of Nigeria is being driven by ecommerce. Jumia recently announced it now has hundreds of pickup points/warehouses in Nigeria, while Konga also said it has improved on warehouse sites nationwide and have upped the capacity with more delivery partners and associates. A crucial point to note in the chain is that as ecommerce firms expand their operation in nukes and crannies of major cities and rural areas, they bring with them economic opportunities for these residents of local communities. “We built our logistics platform to work with franchises in local areas. We partner and empower local people who know the dynamics of villages in Nigeria to deliver last mile for us,’ said Konga CEO Prince Ekeh.

Cross-border ecommerce is the fastest growing international trade, and a report by Boston Consulting Group said online marketplaces could create 3 million new jobs in Africa by 2025. If given proper attention, support and infrastructure investment, ecommerce will not only help in development of rural communities, but immensely reduce employment deficit in Nigeria.


Adedoyin, a Youth Corps Member, writes from Lagos

By Emmanuel Nwachukwu

At the New York Stock Exchange (NYSE) where the stock of Jumia Technologies AG (Africa’ leading e-commerce platform) is listed, the stock is now priced at $17 and the shares are 0.54 points up or 6.03 percent higher compared to its previous closing price of $16.28. As at July, the stock had 5.368 million contracts set over the past session. Jumia shares’ daily volume is compared to its average trading volume at 4.101 million shares. However, it has a float of 7.76 million and although, its performance was 24.38 percent over the week, the stock is one to watch, according to an internationally renowned stock market analyst, Kaden Gilbert.


Looking at current readings, Jumia’s two-week relative strength index (RSI) is 65.19, which suggests that the stock is neutral at the moment and that its shares’ price movement remains stable. The stochastic readings are equally revealing at 77.99 percent meaning that the share price is currently in oversold territory. Jumia’s stock is trading in the green 0of moving average convergence or divergence (MACD) matrix with a reading of 0.96. The MACD is a technical indicator that reveals the changes in the strength, direction, momentum and duration of a trend in a stock’s price. Investors always pay attention to any move above the zero-line for stocks as is the case of Jumia now, or below mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure.


At present, the Jumia stock is gathering a bullish momentum and many analysts are of the view that the trend is going to endure for quite a while. The reasons for this forecast may not be far fetched. Zacks Consensus Estimate, which is the average of all current earnings per share (EPS) estimates, forecasts that the current-quarter revenues for Jumia will decrease by about -99.93 percent, which will see them reach $36.61 million. The company’s full-year revenues are, however, expected to diminish by about -0.19 percent, down from $177.94 million to $177.6 million. Jumia’s expected adjusted earnings should surge almost 7.69 percent to end up at -$0.7 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 48.13 percent to record -$2.77 per share.


These indicators did not just come up today. In its Quarter 1, 2020 financial report, Jumia recorded impressive achievements in its various markets in Africa over the period that coincided with the period of the COVID-19 pandemic lockdown. In the report for the quarter ended March 31, 2020, Jumia recorded huge improvements in all measuring indices over the same period last year, showing that the e-commerce company thrived in the period of the COVID-19 lockdown.


During the period under review, Jumia’s gross profit was €18.4 million, a year-over-year increase of 21 percent. The number of annual active consumers on its platform was 6.4 million, a 51 percent increase over the last year’s figure. Customers’ orders grew to 6.4 million, a 28 percent increase over what it was as at 31 March, 2019. Third party verification (TPV) value reached €35.5 million, a year-over-year increase of 71 percent, taking on-platform TPV penetration from 10 percent in the first quarter of 2019 to 19 percent in the first quarter of 2020.


Also, during the period, JumiaPay transactions reached 2.3 million, a year-over-year increase of 77 percent, representing 35 percent on-platform penetration in terms of orders. The company’s operating loss was €43.7 million, a four percent decrease year-over-year. It also drove Annual Active Consumers growth, which was up 51 percent year-over-year, and orders, up 28 percent, at the same time as reducing Sales & Advertising expense by 25 percent over the same period. The company reported its earnings at -$0.61 per share over the period. This was against the -$0.82 per share that the Wall Street Analysts had predicted, signifying a difference of 0.21 and 25.60 percent surprise value.


The challenges of the COVID-19 pandemic, epitomised by the shelter-in-place restrictions, were turned into opportunities by the managers of the company to maximise returns. The company focused on what proved to be crucial to navigate this crisis, affordability, high purchase frequency product categories and cost efficiency. These lessons are potent and will endure as the pandemic is likely to be around for quite a while, hence many analysts are pointing at the Jumia stock as a good prospect to invest.


As the company has announced that its Quarter 2 financial results for the period ended 30 June, 2020 will be released on August 12, 2020, many of the stock market watchers believe the result would continue on the positive trend of the preceding quarter. If this happens, it will further the stock’s bullish trend in the market with the concomitant appreciation in its price.


Emmanuel Nwachukwu, a Business and Communications Strategist writes from Lagos

By Emmanuel Nwachukwu

There’s no refuting the fact that Covid-19 has had a huge impact on every facet of human endeavour. Its economic impact was felt globally. Though the pandemic itself didn’t cripple the economy; its accompanying restrictions hindered the people whose activities ran the economy.

According to analysis from Australian National University, the global economy could lose up to $14.7 trillion in 2020, provided the world is able to prevent a second wave of the pandemic. The worst case scenario could see the loss rise to about $21.8 trillion.

It is an open secret that the pandemic will leave in its wake some trends that may become part of human socio-economic life for some time to come. For instance, businesses are fast embracing a remote working model. Global social media giants, Twitter announced that some of its employees could permanently work from home. In a firm decision, search engine brand, Google announced that the company employees will work from home until at least the summer of 2021. Sony Music, Amazon corporate, and Royal Bank of Scotland have also told their employees to work remotely till 2021.

However, one major impact the pandemic will leave on global activities are new consumption trends, shopping culture, pattern, and consumer preferences. While some of these trends will affect some sectors, recent events and trends have shown that ecommerce is, and will be one of the biggest gainers of the pandemic realities.

The pandemic is subtly enforcing a change in consumer behavior as people are becoming more hygiene and safety inclined. Despite the fact that restrictions are being lifted and economic activities reopening, the new normal is emerging with signs that online purchasing trends formed during the pandemic may see permanent adoption. Consumer shopping survey conducted in the U.S by Sensormatic Solutions in June showed that brick and mortar patronage is on the decline. “As consumers are becoming more intentional with their shopping visits, in-store experiences were less important in June (11%) compared to April (13%) – a 15% decrease month-on-month,” the report read.

While brick and mortar retailers are having hard times, the world’s largest online retailer, Amazon hired 175,000 people in the height of the virus as demands soar on the platform. The company also reported revenue high of $ 88.9billion for the first time in its 26 years history.

On the African continent, the pandemic boosted ecommerce patronage to an all-time high. Many observers of the market were of the opinion that the ecommerce trend will witness slop in the post covid era. But if feelers from industry operators are anything to go by, a new buying culture is emerging instead, as companies and individuals are visiting online platforms for tools and other necessities needed for remote working.

“As people started going out more and more in the last few weeks, we have seen historic top selling categories; furniture, phones, laptops, and other essentials needed for remote working as people and companies start the new normal business and personal lives,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

The change in consumer behavior is also leading a reaction from global brands. The last few weeks have seen many sellers and buyers shift their attention from offline to online for strategic partnerships. Leveraging e-commerce platforms some global brands including Coca-Cola, Procter & Gamble, Mastercard etc moved their products and services to the Jumia platform, either showcasing their products on the Jumia Mall or advertising their products on the Jumia Marketplace and benefiting from the Jumia’s wide reach and logistics operations.

Small retailers who had to embrace the online store platform during the lockdown are also experiencing a continuous shopping trend by customers. A seller on Konga platform, who identified herself as Abimbola said she is currently getting more orders online compared to her offline shop. “I think Coronavirus has opened the eyes of many to what they thought might not work initially. I myself had my doubts about the likes of Jumia and Konga until I was almost running out of business during the lockdown. The interesting part for me is that I currently make more sales online than my own store. I am beginning to consider stopping my shop rent,’ She said.

While sellers like Abimbola are taking advantage of the cost-effectiveness of ecommerce platforms, it is believed the increasing need for customers to save more will also sustain the online shopping culture for some time. According to Abimbola, “Sellers online do competitive pricing which means customers can get products at cheaper prices. Trust me, if customers know that the cost of buying online is the same as shopping offline, they will keep buying online. And the way small companies are filling the logistics gap, complaints about late delivery are reducing. So online shopping might just keep booming after the pandemic.”

It can thus be safely said that as the world embraces the reality of living with Covid-19, the shopping culture imbibed in the heat of lockdown promises to form part of the new normal, with technology-based businesses as major benefactors.

Emmanuel Nwachukwu, a Business and Communication Strategist writes from Lagos

By Ayomide Oriade

The outbreak of COVID-19 and preventive measures enforced by authorities across global borders has further extolled the importance of technology-based connection and communication between people, businesses, organizations and processes; a convergence that makes up a digital economy.

At the last World Economic Forum, global economic leaders predicted that by the year 2022, over 60% of the world economy will be digital, while it was also projected that about 70% of new value created in the economy in the next decade will be based on digitally-enabled platforms. This signals the fact that those saddled with economic policy formulation and implementation in different countries of the world are focusing on the digital economy as the next growth driver. Nigeria also stands a good chance of boosting economic growth by leveraging the potential of the digital economy. In 2019, the World Bank stated that Nigeria is uniquely positioned to benefit from the digital economy, with half of the 200 million population of the country being below the age of 30.

Commendably, figures released by the National Bureau of Statistics in May 2020, showed that the digital economy is already making a significant contribution to Nigeria’s economic growth. Non-oil sectors combined contributed over 90% to Nigeria’s GDP in the first quarter of 2020, with ICT accounting for 14.07%. In what could be seen as a move towards actualising the digital economy projection, a National Digital Economy policy was recently initiated by the Federal Ministry of Communication and Digital Economy. According to the Minister of Communications and Digital Economy, Dr. Isa Pantami, the policy is aimed at developmental regulation; digital literacy and skills; solid service infrastructure; promotion of digital services; software infrastructure; digital society and emerging technologies.

Reports have it that the federal government is set to receive a loan of N127 billion from the China Exim Bank for telecoms infrastructure development. While there is an urgent need for investment in solid and service infrastructure in the ICT sector to further drive digital growth, the crucial space occupied by ecommerce in the digital economy cannot be overlooked. In the thick of lockdown and movement restrictions, firms and businesses with digital presence were having field day. It was a period of business boom for telecommunications companies and internet service providers. The online marketplace gained prominence like never before, even on the African continent. The sector was arguably what was left of the economy during the lockdown. Those doubting the feasibility cum viability of ecommerce on the continent must be having a rethink after seeing the exploits of Jumia, Konga, Jiji, and the likes during the period. Hence, it is pertinent that the aspect of the policy that concerns promotion of digital services is given the needed attention.

From all indications, one of the ways to a robust national digital economy is to encourage more entrepreneurs to bring their business online, and Nigeria already has existing platforms to serve as springboard. Thanks to the activities of ecommerce platforms, Jang in Plateau is able to put his wares in the face of an audience based on Imo State. The tailor in Onitsha, and Shoe Cobblers in Abeokuta are able to sell to customers in Kogi. Sellers and customers are already connecting in a virtual marketplace courtesy of these online stores. All needed is enabling and supportive policies to bring more customers and sellers to this space.

More so, some digital offerings of ecommerce platforms will help to further drive some policies and could also be a revenue collection avenue for the government. For instance, the ecommerce industry leaders in Nigeria, Jumia and Konga have fintech solutions that enable customers to pay seamlessly for purchases made on their platforms. With JumiaPay, customers can also pay electricity bills, Pay TV subscription, and mobile recharge. These fintech products will help drive the cashless policy of the government and also make VAT collection and remittance easier.

Government promoting digital services will also help to entrench healthy market competition, competitive pricing and customer relations needed for improved services and economic vibrancy. When the market is made attractive, there will be more investment in the sector. These will most likely spring stronger competition among online stores, product manufacturers and sellers. “We are always informing our sellers on why they need to provide value to customers with competitive pricing. What customers want especially at this period is best deals at affordable prices. They will go for products that help them save more, and one of the advantages of online stores like Jumia is to provide a wide range of assortments to customers at the best market prices possible,” said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.

Another crucial reason why promoting digital services should be prioritized is the immense spiral impact it will have on the logistics business. Many people will agree that an average delivery agent became a lifesaver during the pandemic. People became more conscious of the crucial role of logistics, and this is mostly down to an upward trend of ecommerce activities. A good example of this is the sudden surge in logistics investment in most commercial cities of Nigeria. Investments of ecommerce players such as Jumia, Konga, Jiji has further opened up the space and is also initiating employment opportunities.

It is thus not surprising that Jumia Logistics and Konga's Kxpress have grown beyond servicing only businesses on their platform. “In 2019 we were able to achieve 25% deliveries in rural areas through a network of direct agents. What this means is that we can accomplish even greater success by opening up our logistics services to the public. We have the right infrastructure people, partnership and technology required to help third parties and partners,” said Jumia Nigeria CEO, Massimiliano Spalazzi. According to Konga CEO Prince Ekeh, the company has built its logistics platform working with local people to empower them to deliver to the last mile. “This is where you add value by providing service open to the entire industry,” he said.

The pandemic has no doubt shown the importance and inherent potential of a digital economy to national growth. For Nigeria to achieve the digital economy projections and be part of the emerging global economic trend, the pivot role of ecommerce in the chain needs to be properly addressed and fully harnessed.

Ayomide, a Public Relations Executive writes from Lagos