Table of Contents
Key Points
- AXIAN Telecom plans potential takeover of Jumia after increasing stake to 9.18%, valuing the e-commerce firm at $52.5 million.
- Jumia’s Q1 2025 orders rose 22%, with growth in Nigeria supporting AXIAN’s digital commerce expansion ambitions across Africa.
- AXIAN raised $600 million in bonds to refinance debt and possibly fund Jumia acquisition, boosting its pan-African telecom and fintech growth.
AXIAN Telecom, the pan-African telecom group led by Malagasy businessman Hassanein Hiridjee, is reportedly exploring a takeover of Jumia Technologies AG, often called Africa’s Amazon. This follows AXIAN’s recent increase in its stake in the e-commerce company to 9.18 percent, now valued at $52.5 million, up from $35 million in mid-June.
According to a Bloomberg report citing sources close to the matter, AXIAN Telecom, based in Mauritius and chaired by Hiridjee, is considering acquiring Jumia. This potential move reflects AXIAN Telecom’s belief in the long-term potential of African digital commerce, especially as the sector seeks more sustainable growth through strong partnerships.
Potential deal could expand reach
Neither Jumia nor AXIAN Telecom has confirmed the talks. Sources say a deal is not guaranteed, but if it happens, it could help both companies expand their presence across the continent. Founded in Nigeria in 2012, Jumia went public in New York in 2019.
Since AXIAN Telecom began increasing its stake in May, it has grown from 8 percent to 9.18 percent. This rise coincides with a more than 40 percent jump in Jumia’s American depositary receipts, pushing its market value closer to $600 million, currently about $571.9 million.
Despite this growth, Jumia’s shares are still well below their listing price of $25.46 per unit, currently trading at $4.67. Once celebrated as one of Africa’s unicorns, with a valuation over $1 billion, it has faced challenges, including building logistics and infrastructure to serve a young, tech-savvy population that depends heavily on smartphones to bridge gaps in services.
AXIAN Telecom secures bond funding
Earlier this week, AXIAN Telecom strengthened its financial base by raising $600 million in the bond markets. The company views its stake in Jumia not just as an investment, but as a sign of confidence in Jumia’s new strategic direction, improved operations, growing logistics network, and the potential of JumiaPay, its digital payments platform. AXIAN believes in Jumia’s efforts to enhance its marketplace, speed up deliveries, and expand its reach in African cities.
AXIAN Telecom’s CEO, Hassanein Jaber, voiced support for Jumia’s vision, highlighting how its retail, logistics, and fintech services contribute to financial inclusion. AXIAN is also considering linking JumiaPay with its own fintech products, which could transform Jumia from a simple e-commerce platform into a broader digital payments hub serving many parts of Africa. This reflects the growing importance of payment systems in unlocking Africa’s digital economy.
In Nigeria, Jumia’s biggest market, signs of progress are clear. In the first quarter of 2025, orders increased by 22 percent, while Gross Merchandise Value grew 20 percent compared to the previous year. This follows a strong 2024, during which Jumia recorded solid growth despite challenges like high inflation and a weaker naira.
AXIAN Telecom expands subscriber base
Under Hassanein Hiridjee’s leadership, AXIAN Telecom now serves more than 42.9 million mobile subscribers and 15.2 million users of mobile financial services. As Africa’s sixth-largest mobile operator, the company’s revenue grew from $1.08 billion to $1.4 billion last year, driven by rising demand for 4G and 5G services. Supporting its growth, AXIAN received $160 million from the African Development Bank in January to boost digital and financial services.
A few months later, it secured another $100 million from EIB Global to accelerate broadband expansion in Madagascar and Tanzania, where internet demand is increasing rapidly. In June, AXIAN’s Comorian unit, Yas Comoros, received a €25 million ($28.8 million) loan from the International Finance Corporation to improve telecom infrastructure and connectivity in the island nation, an important step toward digital inclusion.
The $600 million raised from international bond markets will help AXIAN refinance its debt and could also provide funding for a possible acquisition of Jumia, which is valued near $600 million. This shows growing confidence in AXIAN’s ability to widen its digital footprint across Africa and strengthen its role in the continent’s evolving digital economy.
