(Source: Jumia Technologies)

Axian Telecom has acquired an 8% stake in e-commerce company Jumia Technologies for an undisclosed sum.

Madagascar-based Axian said it was committed to supporting the development of Africa's digital economy, including through investments in companies like Jumia.

"Such investments complement Axian Telecom's core mission of delivering accessible, innovative, and inclusive digital services across the continent, mainly via its Yas (mobile) and Mixx by Yas (fintech) brands," the group said in a statement about the investment.

Axian Telecom CEO Hassan Jaber said that Axian's management is supportive of Jumia's strategic vision, and wants to contribute positively to its growth and success.

"We believe Jumia's achievements in digital retail infrastructure and fintech through JumiaPay, as well as its logistics strengths, place it in a position to promote financial and economic inclusion for the communities which it serves," Jaber said in a statement.

"This unique position makes Jumia a very attractive investment for Axian Telecom, and one which is aligned with our core values," he added.

Axian Telecom is a pan-African telecommunications service provider operating in nine markets: Tanzania, Madagascar, Togo, Uganda, Democratic Republic of the Congo, Senegal, Réunion, Mayotte and the Comoros.

Related:Axian Telecom appoints Hassan Jaber as new CEO

Axian claims to be Africa's sixth largest mobile operator serving more than 40 million customers.

The group has been expanding its footprint through active acquisitions and large network investments since 2015.

In October 2023, Axian acquired additional shares in Senegalese telecom operator Free, taking its ownership up to 80%.

Axian also led a consortium that acquired Tigo Tanzania from Millicom. The sale of Tigo Tanzania was announced in April 2021, and the $100 million deal was officially completed in April 2022.

In February 2023, Axian launched a new investment arm, Axian Investment, aimed at funding Africa's fledgling technology startups.

It operates across three key business segments, providing mobile and fixed networks as well as digital infrastructure and mobile financial services.

Jumia is regarded as a pioneer of e-commerce in Africa, but the company has been facing financial struggles and a declining share price on the New York Stock Exchange in recent years.

The group's financial results for the first quarter ending March 31, 2025, showed a 26% year-over-year decline in revenue to $36.3 million. Operating loss grew to $18.7 million in the first quarter of 2025, compared to $8.3 million in the first quarter of 2024.

Related:Jumia to leave South Africa, Tunisia

Pan-African telecoms operator MTN used to be an investor in Jumia, but it sold its 18.9% stake in the online retailer in October 2020 for about $142 million.

In October 2024, Jumia announced plans to close its South African online fashion retailer Zando and its Tunisian e-commerce operations as part of a strategic shift to optimize resources.

Jumia said that leaving South Africa and Tunisia, and refocusing on its other core markets like Nigeria, Kenya, Egypt and Morocco, would leave it better positioned to accelerate overall growth and improve efficiency.