Jumia’s Shares Plunge as Amazon Announces Nigerian Expansion
- The biggest e-commerce company in the world, Amazon has announced that is planning to set up shop in Nigria by 2023
- This has seen the shares of other e-commerce platforms like Jumia to nosedive by about 10 per cent on Thursday, June 16, 2022
- Also, a latin American e-commerce company, Mercado Libre saw its shares plunge by about 7 per cent as Amazon announced a Latin American expansion
Amazon is coming to Nigeria and this has sent shivers down the spine of Jumia investors.
Africa’s leading online marketplace, Jumia’s shares dropped almost 10 per cent on Thursday, June 16, 2022.
Another leading e-commerce platform, Mercado Libre, an Argentine company operating in Latin American countries saw its shares slip by more than 7 per cent.
Source: Getty Images
Other stocks fell amid interest rate hike by the US
Business Insider report says that this is caused by the US Federal Reserve announcement of the biggest increase in interest rate after almost 30 years.
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The S&P 500 was down about 2.9 per cent on Thursday afternoon, while the Nasdaq Composite dropped 3.6 per cent.
Global e-commerce giant, Amazon is making plans to launch marketplaces in Nigeria, South Africa and Columbia as early as next year.
The company’s growth will spur more competition for local players like Jumia, Thryve Platforms and Mercado Libre. Amazon also wants to expand to Belgium, internal documents state.
What Amazon plans to do in Nigeria
All countries are expected to get their own marketplace and access to Amazon's fulfilment service called Fulfilment by Amazon, the documents said.
Amazon also plans to bring its Prime membership program to each of the countries shortly after the launch, it said.
Investors lose N2.6 billion in 24 hours as First Bank discloses its largest shareholder amid takeover reports
However, Legit.ng reported that FBN Holdings Plc, the holding company of First Bank Nigeria Limited, has confirmed Mr. Tunde Hassan-Odukale as the single-largest shareholder.
Hassan-Odukale is the bank's largest single shareholder, with a 5.36 percent equity investment, followed by Femi Otedola, who has a 5.07 percent stake in the Group.
According to a document made public to the Nigerian Exchange, Odukale and Otedola are the only two large owners with more than a 5% equity stake in First Bank Holdings Plc (NGX).
Source: Legit.ng
