The Commonwealth Development Corporation (CDC), a financial institution owned by UK government earlier this month invested a 50 million EURO equity fund into Jumia parent company Africa Internet Group (AIG) and about nine other online consumer businesses in other parts of Africa.
Mark Pay, CDC’s Managing Director, Equity Investments had this to say about the investment: “CDC’s investment in AIG means that we’re backing a business that is playing a leading role in Africa’s growing e-commerce market. The
investment will help create thousands of jobs and allow many small businesses to access new markets previously closed to them.
“Smartphone-driven e-commerce will be one of the most important technological and economic trends in Africa in the next decade. More and more Africans can now access the internet, with half the population expected to be online by 2025. We’re pleased to be supporting a company that can be a financial success and make a big
the difference to the continent’s development.”
The CDC’s statement on its official website suggests that they had been keeping tabs on AIG before ultimately deciding to invest the said sum into the business. They categorically stated that AIG currently connects more than 50,000 local and international companies with millions of African consumers and that CDC’s capital will help AIG
improve its existing operations and expand into new countries which are in line with the vision of the UK government parastatal.
Welcoming CDC’s investment, Sacha Poignonnec, Co-CEO of Jumia Group said:
“We are very glad to be partnering with CDC. They’re proven experience in investing in Africa and their expertise on long-term development will be decisive in building a healthy ecosystem around Jumia, developing and accompanying more and more African businesses and entrepreneurs in this shift towards mobile and online. Today, Jumia already reaches 50 million people every month and there is no doubt CDC will be a crucial partner in extending that reach over the next months and years.”
This news is a good one, just that the operation of AIG is confusing to me personally in the relationship with Jumia, if we do not forget, we all read news about Jumia acquiring all internet startups under Africa Internet Group. Now, we are saying that the AIG had gotten this huge investment from CDC, who is to manage this fund, Jumia or AIG? I will continue to ask this until I find a definite answer.