Thesis Overview
Jumia (JMIA) presents an interesting investment opportunity for investors to get exposure to Africa's emerging digital economies, though we believe that it comes with a caveat. On one hand, Jumia is quite possibly the only Internet company best-positioned to secure much of the digital opportunities across consumer and payment/fin-tech sectors in the region. On the other hand, Africa's macroeconomic situation also presents investors with a huge dilemma. It will take time to achieve overall improvements in the political environment, Internet penetration, spending power, and infrastructures in the region. We believe that