Innovation Village Newsletter
Posts
🛒 Jumia Resets Strategy to Battle Temu and Shein in Africa

🛒 Jumia Resets Strategy to Battle Temu and Shein in Africa

Plus:💼 China to Remove Tariffs on African Exports

Innovation Village
June 16, 2025

In partnership with

Today’s Menu ☕️

🛒 Jumia Resets Its Strategy to Battle Temu and Shein and Regain Investor Confidence in Africa
💼 China to Remove Tariffs on African Exports, Opening Duty-Free Access for Nigeria and Others
🚙 Moove Aims for Unicorn Status with $300 million Raise and U.S. Expansion
🔋Zafiri Launches with $300m to Power 30M Africans Through Off‑Grid Clean Energy
⚖️ Definely Raises $30m Series B to Transform Legal AI Workflows

If you haven't subscribed, join over 7,000 people curious about Innovation, New Products, New Technologies in Africa.

🛒 ECOMMERCE

Jumia Resets Its Strategy to Battle Temu and Shein and Regain Investor Confidence in Africa

Once hailed as Africa’s first tech unicorn, Jumia is undergoing a major transformation to regain investor confidence, sharpen its market focus, and deliver sustainable profitability. Since its IPO on the New York Stock Exchange in 2019, the e-commerce company has seen its market value plummet from over $1 billion to about $400 million. But under the leadership of CEO Francis Dufay, Jumia is determined to rewrite its story.

In an interview with the Financial Times, Dufay acknowledged the company’s rocky past and outlined a clear path forward. “My focus is simple — we must deliver the numbers,” he said. “Between now and 2027, that will matter more than any speeches. Execution will rebuild our credibility.”

Dufay, who stepped in as chief executive in late 2022, has wasted no time restructuring the company. From job cuts to scaling back from 14 countries to nine, Jumia has trimmed its operations to become leaner and more focused. The aim: break even by 2027.

That credibility has taken a hit in recent years, with investors losing faith due to unmet expectations. The recent exit of Baillie Gifford, formerly Jumia’s largest institutional investor, only heightened the urgency to show progress. To turn the tide, Dufay is meeting investors through roadshows and building new strategic partnerships.

One of Jumia’s biggest challenges — and opportunities — lies in the growing presence of Chinese e-commerce powerhouses Temu and Shein, whose aggressive pricing and logistics have made inroads across Africa. Rather than confront them head-on, Jumia is adapting by forming alliances. A dedicated 70-person team based in Shenzhen, China is now working to onboard Chinese sellers onto the Jumia platform.

This strategy is already bearing fruit: Chinese merchants now contribute roughly a third of Jumia’s total sales volume, offering affordable goods ranging from fashion to electronics. Dufay believes Jumia’s strength lies in being more attuned to the African market, offering localized products and services that global platforms struggle to deliver....……continue reading

Modernize your marketing with AdQuick

AdQuick unlocks the benefits of Out Of Home (OOH) advertising in a way no one else has. Approaching the problem with eyes to performance, created for marketers with the engineering excellence you’ve come to expect for the internet.

Marketers agree OOH is one of the best ways for building brand awareness, reaching new customers, and reinforcing your brand message. It’s just been difficult to scale. But with AdQuick, you can easily plan, deploy and measure campaigns just as easily as digital ads, making them a no-brainer to add to your team’s toolbox.

Learn more now.

💼 BUSINESS

China to Remove Tariffs on African Exports, Opening Duty-Free Access for Nigeria and Others

The announcement made on June 12, 2025, revealed that China would eliminate all import duties on exports from the 53 African countries with which it maintains diplomatic ties. By extending the duty-free and quota-less access that was previously reserved for least developed countries (LDCs), middle-income economies like Nigeria, Kenya, South Africa, Egypt and Morocco have been included in this policy.

The decision made by Beijing indicates a strong desire to correct long-standing trade imbalances and enhance economic relations with the continent.

The trade surplus of China with Africa has remained high, standing at roughly $62 billion in 2024. African exporters of manufactured and processed goods may benefit from increased market entry into China’s vast consumer base by broadening duty-free access. According to Hannah Ryder of Development Reimagined, this policy enhances the potential of countries with manufacturing expertise to broaden and increase their exports beyond raw materials.

Beijing acknowledged that tariffs would be beneficial for middle-income countries, but LDCs could face competition from more industrialized African nations. In order to create a more just trade environment, China committed to providing training and marketing support as well as capacity-building measures to countries like Tanzania and Mali.

The move appears to promote inclusivity across the continent by combining tariff relief with aid programs.........…continue reading

ADVERT

Attend Our Upcoming 2 Day Product Leadership Training

Product Leadership Training equips experienced product managers and leaders with the tools and knowledge needed to effectively guide product teams and drive business growth through innovative product development. The focus is on strategic thinking, leadership skills, and an in-depth understanding of product lifecycle management.

Click here to register now

🚙 RIDE-HAILING SERVICES

Moove Aims for Unicorn Status with $300 million Raise and U.S. Expansion

Moove, the Nigerian-born mobility fintech, is making waves in the global mobility scene. Founded in 2020 by Ladi Delano and Jide Odunsi, the startup has reimagined asset financing for ride-hailing drivers. Now, Moove is gearing up for its next major leap: a $300 million Series C funding round that could elevate it to an elusive $1 billion valuation—landing the company firmly in unicorn territory.

At its core, Moove’s model is elegantly simple yet impactful—drivers gain access to cars through a revenue-based repayment structure, with monthly payments tied directly to their ride-hailing income. This approach tackles the formidable barriers many gig workers face when qualifying for traditional loans—high interest rates, inflexible repayment schedules, and access limitations.

Since its launch, Moove has demonstrated rapid traction. Annual revenue has skyrocketed from $115 million to $360 million, translating to approximately $30 million per month, driven by growing demand across emerging markets. Today, Moove operates in 13 countries spanning Africa, Latin America, the Middle East, India, and the UK, with its next frontier being the United States…...…continue reading

🔋CLEAN ENERGY

Zafiri Launches with $300m to Power 30M Africans Through Off‑Grid Clean Energy

A landmark investment vehicle is launching this July in Mauritius with a clear purpose: to attract long-term capital into off-grid and distributed renewable energy solutions across Sub-Saharan Africa. Named Zafiri, the platform has already secured $300 million in its first phase—split evenly between senior and junior equity—from a coalition of development financiers and philanthropies. The International Finance Corporation (IFC) is contributing up to $120 million, while the African Development Bank (AfDB) and Rockefeller Foundation are backing the initiative as foundational partners

Zafiri is designed to serve as a blended finance vehicle, combining patient concessional capital and commercial equity to fill a critical gap in infrastructure funding. Unlike traditional debt-heavy models, Zafiri provides long-term equity financing that targets distributed renewable energy (DRE) projects such as mini-grids, metro-grids, clean cooking, and solar home systems. These decentralized energy solutions are essential to powering rural regions where more than 570 million people remain without electricity

Establishing itself in Mauritius, Zafiri will operate through an independent investment manager, yet to be appointed. Its initial $300 million funding round includes $150 million in senior equity and $150 million in junior equity from multilateral development banks, DFIs, and philanthropic donors. Additional funding of up to $300 million is expected in a second round once the fund demonstrates strong traction. The vehicle aims for a bold target—a $1 billion net asset value over 10–15 years through portfolio growth and capital reinvestment.......…continue reading

⚖️ LEGAL

Definely Raises $30m Series B to Transform Legal AI Workflows

In early June 2025, Definely, the UK-based legal tech innovator, secured a $30 million Series B funding round, propelling its mission to infuse AI into legal drafting and contract review workflows. The round was led by growth investor Revaia, with participation from Alumni Ventures, Beacon Capital, Clio, and existing backers including Octopus Ventures and The Raine Group

The catalyst for Definely emerged in 2017 when co-founders Nnamdi Emelifeonwu and Feargus MacDaeid—then colleagues at Freshfields—addressed a practical challenge: how to help a visually impaired lawyer navigate dense legal contracts efficiently. Feargus, registered blind, struggled to jump between terms and clauses without losing context. Nnamdi recalled asking himself: Could a simple interface feature help lawyers retain their place while exploring definitions? This question led them to build a tool that improved accessibility and served the entire legal profession.....…continue reading