The recent complete divestment by Baillie Gifford—one of the world’s most respected long-term institutional investors—from African e-commerce pioneer, Jumia, underscores serious concerns over the platform’s sustainability and credibility. Baillie Gifford, known for backing global disruptors like Tesla and Shopify, announced in its May 5, 2025 filing that it had sold all its 18 million shares in Jumia, marking a final exit after years of gradually reducing its stake.
Jumia, once hailed as the “Amazon of Africa” and the first Africa-focused tech startup to list on the New York Stock Exchange, has seen its reputation erode following controversies ranging from governance issues to operational inefficiencies. Once active in 14 African countries, Jumia is now down to 9, following abrupt exits from Gabon, Cameroon, and DR Congo—moves that analysts link to a flawed, unsustainable business model.
The situation is compounded by Jumia’s worsening financials. The company reported a 17% year-over-year revenue drop in Q2 2024 and persistent losses since 2020. Its shares have fallen from a post-IPO high of nearly $50 to below $3.50 today.
Baillie Gifford’s exit, following similar moves by other financial giants like Goldman Sachs and Citi, may discourage future global investments in African ventures. However, some analysts argue that Jumia—a German-registered entity operating in Africa—should not be seen as representative of African entrepreneurial potential. Instead, they highlight truly indigenous platforms like Konga (Nigeria) and Takealot (South Africa) as better poised to carry the e-commerce flag for Africa, with Konga especially praised for its logistics, payment infrastructure, and market-driven innovation.
As Jumia aims to break even by late 2026 and potentially post a profit by 2027, its ability to rebuild investor trust and reshape its business model will be critical. But the loss of Baillie Gifford is a stark wake-up call: without internal reform, even the most promising African startups risk losing global credibility.
