Only a few weeks ago, African e-commerce giants, Jumia hit the screens with yet another significant achievement. Jumia became the first African e-commerce company to be listed on the floor of the New York stock exchange. The company received accolades for this fit, and it was set at the fore of creating a new generation of African based multinational companies. The company started in Lagos in 2012 before expanding to over five other African countries, namely Egypt, Morocco, Ivory Coast, Kenya, and South Africa.
Now it has been weeks since we got the good news and what seems to be coming again is not the same success story you would expect. In the past week, a series of the allegation has been raised against the e-commerce giants, some being that the company plummeted share prices and it is fraudulent.
As sources say, the rise to the New York Stock Exchange has not been a straightforward one for the e-commerce giants. Jumia’s shareholders took legal actions against the company. The document for the charge is titled “Complaint about violation of the federal security laws,” with a demand for trial. The company recorded losses in the first quarter of 2019 without bringing the results of its financial progress to the knowledge of its investors by way of announcement. The suit was further incited by some reports about the same, terming the company’s operation fraudulent.
In an interview with the CEO of Jumia Sacha Poignonnec, he said that the allegations were false and that it is being put forward by people to stop dent the image of the company. He said that the claims were very selected, very biased, and unverified in some cases. He said that the company remains focused on its mission and objective and driving its vision for the company, and Africa forward. He added that Jumia is African in every sense of the word because although not founded by an African, the company itself was born in African and it has employed the services of
several teams to scale things up and get to where it is presently.
Mr. Sacha said that the focus of the company remains Africa, as most of the companies activities are still based in Africa. He noted that there might be reasons for people to think that Jumia is not African, but that those reasons are justifiable because like every company that intends to grow, Jumia works with international resources, which includes developer teams in South Africa, Angola, Dubai, and Nigeria. He said that while the company hopes to get everything it uses from Africa soon, it will continue to work this way in the meantime.
The suit containing the allegations is still standing at the court, awaiting the company to present its part of the matter before a conclusion would be reached. There are indications that Jumia may be facing its current challenges because there may be so many persons out there who never saw the opportunity at the early stage. Jumia’s case is the case of World e-commerce giant Amazon, about which Billionaire Warren Buffett has said that it was his greatest mistake not to have invested in it.m Now that the company is reaping the rewards of its hard work in the past
years. The allegations may be part of the challenges it would have to overcome.