Fawne Jiang

Fawn Jiang asked about the overall macro and consumption dynamics expected for 2026, specifically inquiring if Egypt is anticipated to catch up in growth. She also questioned the operating leverage for sales and marketing in 2026, the impact of the new Yiwu office on assortment and margins, and the potential for Buy Now, Pay Later (BNPL) services across Jumia's markets.

Answer

Francis Dufay, CEO of Jumia, expressed cautious optimism for 2026, citing stabilizing currencies and improving macro environments across Africa, particularly in Nigeria. He expects Egypt to accelerate its growth, leveraging its large market and up-country expansion. Regarding sales and marketing, Dufay noted increased spend in H2 2025 due to improved unit economics but assured a continued focus on profitability targets for 2026. The Yiwu office is expected to diversify product mix from international vendors, adding more fashion and home products, potentially lowering AOV but with higher percentage margins. Dufay explained that BNPL offerings are highly fragmented by market, with Egypt having a well-structured ecosystem, but expansion to other countries is dependent on local regulatory and ecosystem readiness.

Fawn Jiang inquired about the overall macro and consumption dynamics expected for 2026, specifically Egypt's growth trajectory, the balance between user acquisition/retention and marketing efficiency for 2026, the impact of the new Yiwu office on assortment and AOV, and the potential for Buy Now, Pay Later (BNPL) services across Jumia's markets.

Answer

Francis Dufay, CEO of Jumia, expressed cautious optimism for the 2026 macro environment, citing stabilizing or improving currencies across Africa, which aids customer trust and supply chain efficiency. He expects Egypt to catch up in growth, seeing significant expansion room despite competition. Dufay explained that increased marketing spend in H2 2025 was justified by improved unit economics, with a focus on maintaining profitability targets for 2026. The Yiwu office is expected to diversify product mix from international vendors, particularly in fashion and home products, potentially driving more volumes of lower-value, higher-margin items. He noted that BNPL offerings are highly fragmented by market, with Egypt having a strong ecosystem, but expansion to other countries depends on local regulatory and ecosystem readiness.

Inquired about the expected pace and magnitude of the market recovery in Vietnam and Malaysia, the reasons for the slow start in the Fintech business and its outlook, and the cost and margin trends for the rest of the year given the strong Q1 performance.

Answer

The recovery in Vietnam shows encouraging signs with government support and strong consumer demand, but it's too early to predict the pace. The Fintech business's slow start was due to the closure of FastKey and lower mortgage volumes, but the company remains confident in its long-term potential. The company reaffirmed its full-year guidance, noting that Q1 costs were seasonally low and investments will increase through the year.