IFC invests $25M in Jumia to expand digital commerce across Africa

The International Finance Corporation (IFC) is investing $25 million in equity in Jumia Technologies AG to support the e-commerce platform’s expansion across its core African markets and to widen access to digital commerce for small businesses, according to a statement.

The investment by IFC, the private-sector arm of the World Bank Group (WBG), will back Jumia’s next phase of growth and strengthen its integrated online marketplace and logistics network. IFC’s role as the World Bank Group institution focused on private sector development is confirmed by the group.

Through this investment, the WBG expects Jumia’s platform to enable around 60,000 local sellers to participate more extensively in the digital economy annually. The initiative is also expected to support about 1,800 direct jobs and provide income-generating opportunities for more than 100,000 independent sales agents.

Jumia currently operates across eight African markets, including Egypt, following its exit from Algeria earlier this year.

"The support of the World Bank Group is a milestone for Jumia and for African e-commerce more broadly. It validates both the discipline we have brought to our business in recent years and the tangible impact our platform has on small businesses, jobs, and consumers across our eight markets. With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs," said Francis Dufay, CEO of Jumia.

“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale. Our investment supports the company’s next phase of growth while contributing to creating jobs, digitizing supply chains and distribution channels, and mobilizing private investment,” commented Farid Fezoua, Director for Equity, Funds, and Venture Capital at the IFC.