Donald Trump’s trade war is helping 'Amazon of Africa'; What CEO of continent's biggest e-commerce site said

The CEO of Jumia Technologies AG, Francis Dufay, has claimed that the company is benefiting from the global trade war. According to Dufay, US President Donald Trump‘s tariffs on Chinese goods have led China to divert products to other markets, including those in Africa. This is making it easier for the continent’s largest e-commerce company, also commonly referred to as the “Amazon of Africa,” to obtain goods, Duffy claimed.“Our pipeline of goods from China is getting healthier and healthier, and we have a lot more interest from Chinese suppliers and vendors. It’s really making our lives much easier.” Dufay said in a Bloomberg TV interview. While Africa’s economies are growing rapidly, the region has been considered a less appealing market for Asian manufacturers due to its limited infrastructure and high inflation rates. However, as tariffs have limited Chinese shipments to the US, exports to Africa have soared by 25% year-on-year.

What Jumia CEO said about the company’s growth

Jumia has been restructuring to reduce costs, exiting markets such as South Africa and Tunisia and halting food delivery operations. It is now the largest e-commerce company in eight of the nine countries where it operates, Dufay said, with more currency stability in recent months. “Consumers are gaining more confidence,” he added.This stability is helping Jumia defend its market position against low-cost Chinese entrants, such as Temu and Shein. Dufay noted that the company had a strong head start, having developed extensive logistics networks and fleets that competitors would find hard to replicate. He added that Jumia has retained its top spot in Nigeria, even as Temu began making inroads late last year. Jumia has had to build its own logistics and infrastructure in several markets to serve a young, tech-savvy population that relies on smartphones to overcome gaps in services.The company was among the first African companies to reach “unicorn” status with its 2019 New York listing, though its market value fell from a January 2021 peak of over $5 billion. Still, shares have risen 210% so far this year, bringing its market value to roughly $1.45 billion.