The Independent Uganda: You get the Truth we Pay the Price
Uganda’s subsidiary on solid ground
Meanwhile, Ron Kawamala told The Independent on Nov.8 that their business model in Uganda is built on a solid ground that delivers on quality, speed and good customer care.
He said Uganda’s online market remains small when compared with developed markets like the United Kingdom and America but was optimistic that the country’s young population hold the future for online transactions given that they are active internet users.
He also said that innovations is one component driving their business.
The company has since 2014 been running promotional Black Friday – a window that sees vendors sell their goods at discounted prices to online shoppers.
The company said in a statement shared on Dec.09 that the just concluded Black Friday attracted large volumes of shoppers, surpassing the 2018 numbers by over 50%.
ICT players say Jumia Uganda business is well run internally but say, external factors relating to the economy and government tax policies and incentives will determine its future operations.
“I believe the internal structure is solid,” Albert Mucunguzi, the chairperson of the ICT Association of Uganda told The Independent on Dec.09. He added:
“… The shutdown in Tanzania and Cameroon are based on merit and I applaud them for taking that strong decision…if something is not working, there is no need to keep pushing it.”
However, he said, different players have to encourage people to get online other than stopping them to get online.
“There is need for internet access incentives, incentives for computers and smartphones,” he said.
He said the unfair taxation regimes such as the one on the Over- the-Top and related regulations should be made fair to aid people to join the internet eco-system that support growth of businesses like that of Jumia instead of having them move physically to markets to do shopping.
He said, internet usage has not grown beyond 15% in the last 12 months in Uganda partly because of OTT regime and related high costs.
Mucunguzi said that Jumia is the most popular online site in Uganda and is employing many people including those who are selling goods online and contributing to adoption of digital and financial inclusion.
“It is in everyone’s interest that it should not leave,” he said.
He said Jumia officials should deliver on quality similar to what other popular world players like Amazon do if they are to remain a darling for online shoppers.
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