The companies hope to take advantage of Africa’s fast-developing financial services and insurance market, which is benefiting from low penetration rates, increased urbanisation, a youthful population and the rise of the middle class. “[The] Internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way,” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and Africa Internet Group. “We expect Africa’s e-commerce and online businesses to develop rapidly as a result of the strong growth of the middle class, coupled with the increasing mobile phone and internet penetration.”
They continued: “With Rocket Internet’s extensive background in online business models, MTN as a leading mobile carrier with its broad African presence, and now the partnership with AXA in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast growing consumer demand.”
Denis Duverne, deputy CEO of AXA, was excited by the partnership: “This transaction confirms AXA's long-term commitment towards the African markets and represents another step in our development on the continent. Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development by having access to their rich customer base and to their state-of-the-art e-commerce technology. Going forward, we aim to enable African consumers to better access insurance solutions to create sustainable financial well-being throughout their lives and those of their dependants.”
AXA is investing €75 million and will own approximately eight per cent of Africa Internet Group’s capital. As a subsidiary of the Group, Jumia currently operates in 11 African markets. Jumia is currently present in 11 African markets and grew its transaction volume (GMV) by 265 per cent during the first nine months of 2015 to reach €206 million.