Jumia's 14 years in Uganda’s e-commerce ecosystem

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Over the last 14 years, Jumia Uganda has evolved from a little-known online marketplace into one of the most influential players in Uganda’s digital e-commerce ecosystem.

This evolution has seen Jumia Uganda transcend from just a mere marketplace to creating opportunities in the e-commerce value chains, helping reshape how businesses and consumers interact in the digital age.

According to Steven Lamony, the Managing Director, the company’s growth journey reflects the wider evolution of e-commerce across Africa, from an era of limited internet access and low consumer trust to a period where digital trade is increasingly becoming part of everyday life.

Lamony, who joined Jumia in 2019 after working in the banking sector, says the company has undergone several phases of transformation that have helped position it as a major force in Uganda’s digital economy.

Steven Lamony, Jumia Uganda Managing Director. (Courtesy photo)

“I joined the organisation because I saw the potential of a young and vibrant company that was changing the way commerce works in Africa,” Lamony said. “I started in the revenue and commercial functions before moving into leadership roles and eventually becoming CEO.”

He explained that when Jumia entered Uganda around 2012, e-commerce was still largely unfamiliar to many consumers. Internet penetration was low, smartphone ownership remained expensive and digital payment systems were still underdeveloped.

“At that time, internet services were mostly concentrated in urban centres like Kampala and a few surrounding areas,” Lamony noted. “There were very few internet service providers, and many people had not yet embraced online shopping.”

Jumia initially launched as a multi-service digital platform offering physical goods, food delivery and travel booking services. The company’s early entry into several African markets helped introduce millions of people to e-commerce for the first time.

Over the years, however, the business model evolved in response to market realities and customer behaviour.

One of the defining moments for the company came in 2019 when Jumia listed on the New York Stock Exchange, becoming one of the first Africa-focused technology companies to achieve such a milestone.

“That listing created global interest in Africa’s e-commerce potential. It also forced us to reflect on where we had strong fundamentals and where we could create sustainable value,” Lamony said.

The COVID-19 pandemic later accelerated the adoption of digital commerce across many African countries as lockdowns and movement restrictions pushed more consumers online.

For Jumia, the pandemic became both a challenge and an opportunity.

“COVID helped us understand our strengths as a business,” Lamony explained. “Over time, we had built a strong logistics network, supplier relationships and a growing customer base. We realised the physical goods business was where we had the strongest opportunity.”

One of the company’s biggest strategic shifts was moving beyond Kampala and expanding services into underserved regions across the country.

Lamony said Jumia recognised that a significant percentage of Uganda’s population lives outside major urban centres, yet many rural and upcountry consumers often face limited access to affordable products.

“Customers in places like Mbarara, Gulu or Arua did not have the same options as customers in Kampala,” he said. “In many cases, products were more expensive upcountry because of distribution costs and limited availability.”

To bridge that gap, Jumia invested heavily in building a nationwide logistics and pickup station network capable of reaching customers in different parts of the country.

“We realised one of the biggest barriers was a proper address system,” Lamony said. “Many areas do not have formal street addresses, which makes home delivery difficult and expensive.”

As a solution, the company established pickup stations in trading centres and strategic locations where customers can receive their products conveniently.

“Customers can order online, inspect the product at the pickup station and pay on delivery,” he explained. “That approach has played a very important role in building trust.”

According to Lamony, trust remains one of the most critical issues in Africa’s e-commerce industry.

“People want assurance that the product they order for is exactly what they will receive,” he said.

“Building trust requires consistency, quality assurance and strong refund systems.”

Beyond logistics, Jumia has also relied heavily on technology and data analytics to improve customer experiences and strengthen its market position.

Lamony said the company has, over the years, built a deep understanding of consumer behaviour through digital data and customer interaction patterns.

“Every time a customer visits the platform, searches for a product or adds something to their cart, we learn more about their preferences,” he said.

“Today, with AI and data analytics, we are able to personalise customer experiences and recommend products based on shopping habits.”

He noted that this has enabled the platform to create more targeted marketing campaigns and improve customer retention.

The company has also positioned itself as a platform for small businesses and entrepreneurs seeking access to wider markets.

Lamony said many local sellers previously struggled to compete with larger businesses that already had established distribution networks and nationwide visibility.

“If you are a small seller operating in Kampala, it can be very difficult to reach customers outside your immediate area,” he said. “But through Jumia, a seller can now access customers across the entire country.”

He added that the platform has helped many entrepreneurs grow businesses that were initially started without physical stores.

“We have seen many success stories of young entrepreneurs who started small and are now running thriving online businesses,” Lamony noted.

Another major innovation has been the company’s J-Force programme, which employs offline sales agents to help communities with limited internet access participate in e-commerce.

“These agents move into communities, show customers product catalogues and help them place orders,” Lamony explained. “This is especially important for people who may not own smartphones or have internet access.”

According to him, the initiative has created employment opportunities for thousands of young Ugandans while expanding digital commerce into rural areas.

“Today we have more than 6,000 active J-Force agents earning commissions and supporting customer acquisition,” he said.

Lamony believes Jumia’s broader contribution goes beyond e-commerce and includes strengthening Uganda’s digital economy, supporting logistics businesses and enabling entrepreneurship.

He pointed out that many logistics providers who started with only a few vehicles have grown significantly over the years because of opportunities created within the e-commerce ecosystem.

“We have spent years building logistics infrastructure, educating customers and supporting sellers,” he said. “That investment has helped grow an entire ecosystem around digital commerce.”

On increasing competition within the sector, Lamony said competition should not be viewed negatively because it validates the growth potential of the market.

“The market is large enough for multiple players,” he said. “Competition encourages innovation and helps grow the industry.”

He nevertheless called for policy discussions to ensure that all e-commerce players contribute fairly to local economies through investment, employment, and operational presence.

“As Uganda pursues digital transformation and economic growth, there is a need to support businesses that are investing locally and contributing to the economy,” he said.

Looking ahead, Lamony said Jumia will continue focusing on affordability, convenience, wider product access, and faster delivery services.

“We understand what customers want — affordable products, reliability and convenience,” he said. “Our focus is to continue improving customer experience and reaching more communities across Uganda.”

Reflecting on the company’s 14-year journey, Lamony said he remains proud of the impact Jumia has had on entrepreneurs, logistics providers and young people seeking employment opportunities.

“I am proud of the opportunities we have created for sellers, riders, logistics entrepreneurs and J-Force agents,” he said. “We are also proud that today we have built a logistics network that can comfortably reach every corner of Uganda.”