Leading African e-commerce company, Jumia, has secured a warehouse space of about 6,000 square meters at the Agility Logistics Park (ALP), in Ghana. This was disclosed in a statement by the Regional Head of Communications and Public Relations in Sub-Saharan Africa, Robert Awodu, and seen by Technext.
According to the statement, the warehouse will be Jumia’s new nationwide fulfilment operations centre for the country. The warehouse, obtained under a 10-year lease, will also be used for storage fulfilment as well as an office space.
The company also said the choice of ALP was because it is a state-of-the-art logistics park. The facility is expected to hold a wide range of products and be used to process orders and ship deliveries to consumers across Ghana.
Speaking about the choice of ALP, the CEO of Jumia Ghana, Temidayo Ojo, said it comes down to being a strategic location that will guarantee efficiency in service delivery.
“We chose the Agility Logistics Park in Tema because its strategic location will help ensure rapid, efficient delivery of products throughout Ghana. Increased quality storage capacity at the new facility will enable us to improve efficiency in managing our growing product range, allowing us to better meet the expectations of Ghanaian customers,” Mr Ojo said.
Jumia looking to get back to its feet
Jumia is listed on the New York Stock Exchange and operates in 11 African countries. Its marketplace connects sellers to consumers with logistics services that enable shipment and delivery of packages. The platform offers goods across a broad range of categories, including phones and electronics, home appliances, fast-moving consumer goods, fashion and beauty products. The company’s JumiaPay solution facilitates online payment transactions.
The company has endured a torrid couple of years, prompting the company to make tough decisions to streamline operations. These decisions include discontinuing activities with poor growth prospects, restructuring the business model, and significant reductions in marketing spend.
The result was an impressive 90 per cent year-over-year decline in operating losses. The company also announced that it is shutting down non-performing verticals like its South African fashion distribution line, Zando.
It also announced the shutting down of its Tunisian operations. Both of these entities contributed only 2.7 per cent of total orders and 3 per cent of Gross Merchandise Value during the first half of 2024. The company said it now intends to focus on more profitable markets like Nigeria, Kenya and Ghana. This investment into a warehouse at the Agility Logistics Park is an expression of this focus.
The warehouse is just minutes from Tema Port, one of West Africa’s largest ports for importation of goods. The ALP also offers the country’s most modern warehousing and infrastructure, and best facilities management, security, versatility and leasing terms.
The ALP also serves as a storage, distribution, assembly and processing hub for multinationals, regional leaders and local brands in consumer goods, retail, equipment, automotive, energy, mining, agri-business and other sectors. The park includes a training facility, as well as sustainability features that reduce waste and lower energy and water consumption.
Speaking about Jumia establishing a presence at the park, the CEO of Agility Africa, Geoffrey White, said they are enthusiastic about helping the e-commerce company accelerate its growth in the country.
“We are delighted that Jumia chose to make the Agility Global warehouse park in Tema its new home in Ghana. The location, modern infrastructure and services at ALP Ghana make it ideal for e-commerce operations. We’re confident that quality warehousing can assist Jumia to accelerate its growth and meet the demands of Ghana’s rapidly expanding online shopping market,” Mr White said.
See also: Jumia posts 90% year-over-year decline in operating loss in 2023, declares optimism for 2024
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