MTN set to sell stake in Jumia

MTN telecommunications service to sell stake in Jumia
Emeh Joy

MTN Group intends to sell part or all of its $243m (R4.1bn) interest in Jumia Technologies as part of its strategy for paying off its debts as well as venturing into new markets.

The group has previously designated the online retailer as a non-core business and is bringing up plans to sell. This is coming after Jumia's shares surged 142 per cent this year, recovering from a dip in 2019, a source told Bloomberg.

It has also been reported that final decisions about the sale haven't been made. The sources spoke on the ground of anonymity, adding that the plans were still underground.

In December 2013, MTN invested in Jumia Group and gained ownership of 33.3 per cent shares in the famous e-commerce company.

The telecommunication company had since then invested an additional $143m in the online platform, thus, increasing its stake to 41.4 per cent.

Clacified reported last month that MTN commenced its trial of e-SIM in Nigeria as part of its drive to lead digital transformation as well as improve the quality of services it offers to its customers.

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