Jumia’s search for profitability continues
Plus Nigeria’s SEC moves to tax crypto transactions
Happy Monday!
In case you missed it last week, we launched our Podcast! Tech Tides Africa Podcast is Live! 🚀 We’ve dropped two episodes covering the biggest stories on African startups, technology, and innovation.
🔥 Stay ahead of Africa’s tech evolution! Listen now
Here’s what else we have lined up for you this week:
Nigeria’s SEC moves to tax cryptocurrency transactions
Jumia reports 10% revenue decline despite efforts to reach profitability
The secret to Andela's success: a case study
That’s not all; we also have other interesting reads, funding opportunities, and job openings at leading tech companies.
Nigeria’s SEC moves to Tax Cryptocurrency transactions
The Nigerian Securities and Exchange Commission (SEC) is revising regulations to introduce taxation on cryptocurrency transactions. According to Bloomberg, this move aligns with the government’s broader strategy to boost national revenue while strengthening oversight of the digital asset market and is expected to be adopted this quarter.
Despite past crackdowns on crypto platforms, Nigeria remains one of Africa’s leading countries for cryptocurrency adoption. This steady growth reinforces the sector's influence on the financial ecosystem and the broader economy, signaling why the government aims to establish a more structured regulatory framework for digital assets.
Beyond taxation, the proposed bill includes additional levies on transactions conducted through regulated exchanges. The SEC’s regulatory efforts started in 2024 with the introduction of a licensing framework for cryptocurrency startups and Virtual Asset Service Providers (VASPs), requiring them to register and comply with strict guidelines. This led to the provisional licensing of two exchanges, Busha and Quidax.
Looking ahead, the SEC plans to expand its licensing framework, aiming to shift more Nigerian crypto traders onto centralized exchanges where transactions can be monitored and taxed. While these measures and policies may enhance oversight and regulatory clarity they may also create challenges for crypto startups and potentially stifle innovation within Nigeria’s growing digital asset ecosystem.
Jumia reports 10% revenue decline despite efforts to reach profitability
African e-commerce giant Jumia released its fourth quarter 2024 financial report on Thursday. The report revealed a 10% year-over-year revenue decline to $167.5 million despite ongoing efforts to achieve profitability.
The company attributed the drop to currency devaluation and lower commissions from third-party corporate sales in Egypt, which significantly impacted revenue generation. Additionally, Jumia incurred a $10 million loss in Q4 2024 due to termination expenses tied to its exit from South Africa and Tunisia, a strategic move it made last year to refocus resources on larger markets with higher growth potential.
Despite facing setbacks, Jumia reports resilient performance. Operating costs dropped by 10% year over year to $60 million. Active customers stood at 5.4 million, a slight decline from 5.7 million in 2023. Order volume grew by 6% to 22.7 million. JumiaPay, the company’s digital payment platform, saw significant traction, growing 20% year over year to $10.1 million, fueled by increasing adoption of Jumia Pay on delivery.
Meanwhile, Gross Merchandise Value (GMV) fell by 4% to $720.6 million, despite order volume growth. However, Jumia projects a GMV increase of 10%-15% in the coming year.
“Our priorities for the year are to build on this momentum by driving top-line growth and improving operational efficiencies,” said Jumia CEO Francis Dufay.
Looking ahead, Jumia is committed to improving cost efficiency, refining customer acquisition strategies, and strategically expanding into key markets. This focused approach will further solidify Jumia's position as Africa's premier e-commerce platform and pave the way for long-term profitability.
The Secret to Andela's Success: A Case Study
Andela was founded in 2014 by Ian Carnevale, Brice Nkengsa, Nadayar Enegesi, Iyinoluwa Aboyeji, and Christina Sass to train and connect African software engineers with global opportunities. But, I bet you didn’t know the journey began earlier with Fora, an edtech startup that was launched in 2013 by the same founders, except Christina Sass. Fora offered long-distance learning for African university students.
However, due to regulatory hurdles and funding constraints, Fora shut down, leading to the creation of Andela as a separate company.
Andela started in Nigeria with its first cohort of six software engineers. It expanded to Kenya in 2014, Uganda in 2015, Rwanda in 2016, Tanzania in 2017, Egypt in 2018, South Africa in 2019, Ghana in 2020, Morocco in 2021, and Ethiopia in 2022. The first Andela Fellowship cohort in Nigeria graduated in 2018, gaining technical expertise and work experience.
Read more about Andela’s path to success in our latest case study.
Did you know?
Currently, Nigeria boasts over 400 AI firms and startups, making it the second-largest player in Africa’s AI landscape as of 2024. With South Africa leading the continent in AI development, with over 600 AI firms in 2024.
This week’s poll…
Other Interesting Reads
Funding opportunities 💰
Do you know someone building something cool? Share these opportunities with them!
Ajim Capital is investing in 5–6 more startups before mid-2025! They’re backing bold founders in FinTech, HealthTech, AI, Logistics, Marketplaces, and B2B SaaS.
Israeli unicorn StarkWare launches $4 million fund to invest in African blockchain startups
Flutterwave CEO’s venture studio Resilience17 to invest $200,000 each in selected AI startups
These companies are hiring:
Zikoko is Hiring a Writer (HER Vertical)
Head of Business Banking Product at FairMoney
Lead Product Designer at Raenest
Mobile/Desktop Crossplatform Engineer at Breezelearn
Cheers to a productive and successful week ahead!
