AXIAN Telecom invests in Jumia, a headline that marks a turning point in Africa’s digital economy.
Just days after Baillie Gifford, Jumia’s largest investor, completely exited the company, the pan-African telecom giant AXIAN stepped in and acquired an 8% minority stake. This sudden investor shift is raising eyebrows, and rightly so.
What does this mean for Jumia? Why is AXIAN betting on a company that’s seen its stock price drop over 85% since its IPO? And is this partnership the beginning of something bigger?
Let’s break it down.
Who Is AXIAN Telecom?
AXIAN Telecom is a fast-growing pan-African telecommunications company with operations in nine African countries. It serves over 42.9 million mobile subscribers and more than 15.2 million mobile financial service users. The company operates under the YAS Mobile and MIXX Fintech brands.
With its recent $160 million loan from the African Development Bank to boost 4G and 5G expansion, AXIAN is not only growing in size but is also positioning itself at the intersection of telecom, fintech, and now e-commerce.
So when AXIAN Telecom takes a stake in Jumia, it’s not just an investment. It’s a signal of long-term digital infrastructure alignment.
Why Did AXIAN Invest in Jumia?
AXIAN Telecom says the move aligns with its mission to drive digital inclusion in Africa. Jumia’s strengths in logistics, JumiaPay (its fintech arm), and e-commerce infrastructure make it an attractive partner.
In the words of Hassan Jaber, AXIAN Telecom’s CEO:
“Jumia’s achievements in digital retail infrastructure and fintech through JumiaPay, as well as its logistics strengths, place it in a position to promote financial and economic inclusion.”
When AXIAN Telecom invests in Jumia, it’s betting on the potential of a fully African-built ecosystem to serve African consumers at scale.
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The Timing
The timing couldn’t be more dramatic. Baillie Gifford, Jumia’s largest institutional investor, dumped its remaining shares just a week before the AXIAN deal.
The Edinburgh-based investment firm, once holding over 18 million shares, fully exited after six years, selling its final tranche at $2.40 – $3.00 per share (a far cry from the $26+ IPO peak in 2019).
That exit raised alarms about Jumia’s future. But now, AXIAN Telecom invests in Jumia at arguably its lowest point, when confidence is scarce, and the company is under intense pressure.
Is this bold conviction or blind faith?
Jumia’s Struggles
With competitors like Temu and Shein entering the African market with deep pockets and aggressive marketing and pricing, Jumia is under pressure like never before.
Jumia’s Q1 2025 results show a 26% year-on-year revenue decline. Its total revenue dropped to $36.3 million, but it managed to reduce losses significantly, from $40.7 million to $16.7 million.
Cost-cutting measures include:
- Slashing marketing budgets
- Exiting unprofitable markets like South Africa and Tunisia
- Focusing on SEO and local radio
These moves helped reduce cash burn, but also slowed revenue growth.
So why now? Why would AXIAN move in just when the world seems to be moving out?
Because it sees value that others are missing.
What We Can Expect From AXIAN’s Stake in Jumia
This is not just about money. When AXIAN Telecom invests in Jumia, it also brings:
- Digital distribution: Telcos have massive customer bases. Jumia can tap into this for marketing, payment services, and faster growth.
- Fintech experience: With MIXX by YAS, AXIAN already knows mobile money. JumiaPay can scale better with this backing.
- Cross-border infrastructure: AXIAN operates in nine countries. Jumia can use this footprint to expand efficiently.
Together, they can build an ecosystem where people can shop, pay, and communicate, all in one infrastructure network.
Will AXIAN Go Further?
Some analysts believe that as AXIAN Telecom invests in Jumia, it could be the beginning of a deeper relationship.
Could AXIAN seek majority control in the future? Could the telecom giant help Jumia enter new markets or offer bundled services (e.g., free data for Jumia shopping)?
It’s possible. And that could be Jumia’s secret weapon.
What This Means for Africa’s E-Commerce Landscape
The moment AXIAN Telecom invests in Jumia, it signals a shift in the narrative:
- From foreign capital (like Rocket Internet and Baillie Gifford)
- To African strategic investors with skin in the game
It’s also a signal that telcos are not content with just selling data. They want to own the platforms that people use the data for.
This move may trigger similar partnerships. Expect more deals between telcos, fintechs, and e-commerce platforms across Africa in 2025 and beyond.
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Final Thoughts
AXIAN Telecom invests in Jumia at a time when most investors are retreating. That alone makes it a bold move. But bold doesn’t mean reckless.
AXIAN sees infrastructure. It sees fintech. It sees potential.
And if Jumia can survive its current challenges, this partnership might be remembered as the moment the company turned the corner.
