(Ecofin Agency) - The Commonwealth Development Group (CDC Group) said it will invest $55.5 million in Africa Internet Group (AIG) to improve the group’s current operations and support its expansion across Africa.
“CDC’s investment in AIG means that we’re backing a business that is playing a leading role in Africa’s growing ecommerce market. The investment will help create thousands of jobs and allow many small businesses to access new markets previously closed to them,” said CDC’s managing director, Mark Pay.
AIG is the parent company of Jumia, one of the most popular e-commerce platforms in sub-Saharan Africa. Other platforms owned by the group include travel platform Jovago, classified ad sites Lamudi (real estate properties), Carmudi (cars), Vendito (general goods) and Everjobs (jobs). Besides promoting wealth and job creation, CDC Group, like other investors before it, wants to position itself on a new niche of profitable opportunities, a niche sustained by significant growth of access to mobile internet.
Among AIG’s other investors, there is Goldman Sachs who invested close to €300 million, French insurer Axa who acquired an 8% in its capital, and telecom groups MTN, Rocket Internet and Millicom. “We are very glad to be partnering with CDC. Their proven experience in investing in Africa and their expertise on long-term development will be decisive in building a healthy ecosystem around Jumia,” said Jumia’s Co-CEO, Sacha Poignonnec.
Despite actors like Cdiscount who announced its exit from Cameroon and Senegal, e-commerce in Africa is becoming a preferred investment target for major groups. Last week, Ebay, one of the biggest actors of this sector, said it was entering the African market through a partnership with MallforAfrica. It follows Swiss Rignier who acquired Nigerian platform Dealdey.
