MTN Group has announced its exit from Jumia Africa. The Africa telecom giants have been part of the online purchasing site since its infancy.
The South African telecom company has been a massive partner of Jumia. The partnership came both in regards to investment but also a massive marketing from the Telecom giants.
In April 2019, Jumia became the first African tech company to list on the New York Stock Exchange, and its shares soared to hit a $2 billion valuation. Issues with partners saw the company fail to make profits something that sent its stocks crashing.
In a period of 6 months, Jumia had lost the glittering status and as a result, their stocks were going for as low as $3 per share at the start of the pandemic.
Around the period of March 2020, Internet Service Providers, Rocket Internet sold off their shares with Jumia.
But like many Tech companies around the world, Jumia enjoyed a resurgence of hope during the pandemic with its stocks rising by 147%.
MTN Africa Announces Quitting Jumia
In August of 2020, MTN had announced that it will be selling all its 18.9% stake in the Tech company. However, they also stated that they were just to make a final decision. But it now reveals that it made a filing with the New York Stock Exchange to prepare for a secondary sale of its shares.
“We are proud to have been a partner in the evolution of one of Africa’s pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets,” MTN said in a statement.
In the last 7 days, Jumia’s shares have steadied between $16 – $19 and its market cap has reached as high as $1.5 billion.
A negative pre-market movement has followed MTN’s announcement, but it has remained within the price range of the last seven days –$17.25 and it’s currently valued at $1.35 billion.
We have already seen Jumia close activity in Cameroon and Tanzania with the company reportedly struggling in Rwanda and Uganda. They retain good activity in Kenya, Egypt and Nigeria which happen to be their biggest markets.
Author: Moses Echodu
Moses is an avid Sports and Tech enthusiast. He loves to keep up to date with all the latest information and research on some of the most compelling stories.