Orange acquires Sh8.6bn stake in Africa Internet Group

French firm Orange has acquired Sh8.6bn stake in AIG, the parent company of online retailer Jumia. FILE |

What you need to know:

  • Jumia was created in Nigeria in 2012, it is now in 23 African countries, with Kenya featuring as one of its top markets. AIG also runs e-commerce marketplace Kaymu, food delivery website Hellofood and hotel booking site Jovago.
  • The investment was initiated by Orange Digital Ventures, and is aligned to the firm’s strategic plan, ‘Essentiels 2020,’ which aims to enhance customer service, develop digital channels and services offered to customers as well increase business in the continent.

Orange Group has acquired Sh8.6 billion equity interest in Africa Internet Group which owns Jumia, in a frenetic pace of deals that has seen the French firm spread its footprint across the continent.

Orange which dumped its position in Telkom Kenya recently, joins longstanding investors MTN Group, Millicom and Rocket Internet in the fight for a stake of the fast growing internet firm, AIG.

The deal will plug Orange’s struggling businesses in Africa onto the e-commerce market and reinforce its position in online advertising.

LEADING ROLE

Jumia was created in Nigeria in 2012, it is now in 23 African countries, with Kenya featuring as one of its top markets. AIG also runs e-commerce marketplace Kaymu, food delivery website Hellofood and hotel booking site Jovago.

Stéphane Richard, Chairman and CEO of Orange, stated: “with this strategic investment, Orange now has the capacity to play a leading role in the fast-growing e-commerce market in Africa.”

“Across the twelve countries where we have a common presence, this investment will enable us to significantly develop our ability to market products and services developed by Orange Middle East & Africa over the Internet,” he added.

The investment was initiated by Orange Digital Ventures, and is aligned to the firm’s strategic plan, ‘Essentiels 2020,’ which aims to enhance customer service, develop digital channels and services offered to customers as well increase business in the continent.

“With Orange’s support and expertise, combined with that of our existing long-standing shareholders, we will be able to further improve our service offerings and the customer experience while continuing to invest in our infrastructure,” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and Africa Internet Group.

“We are thrilled by Orange’s equity investment and are eager to translate our strategic partnership into unique offers for our customers.”