Aspirational Journey Of Starlink and Jumia In Bridging Africa's Digital Divide

In a new partnership, Elon Musk's Space Exploration Technologies Corp is joining forces with Jumia Technologies AG JMIA to broaden the reach of its satellite broadband services across Africa. 

This alliance significantly addresses the continent's internet accessibility challenges, leveraging Starlink's advanced satellite technology and Jumia's extensive e-commerce network.

Also Read: Vodafone To Use Amazon's Satellites To Bring 5G To Africa, Europe

SpaceX's Starlink and Jumia are initiating this venture in Nigeria, with plans to extend their services to other African nations. 

Jumia's Chief Commercial Officer, Hisham El Gabry, expressed optimism about the collaboration's potential to revolutionize internet access in regions plagued by connectivity issues. 

The e-commerce giant's established presence in Africa positions it as a pivotal player in distributing Starlink's satellite terminals and kits, Bloomberg reports.

The partnership aims to tackle internet penetration in Africa, the continent with the world's lowest internet access rates. 

Traditional telecom providers, including MTN Group Ltd. and Vodacom Group Ltd., have faced hurdles in expanding their infrastructure to remote and underserved areas. 

Starlink's low-earth orbit satellites offer a solution, ensuring reliable broadband services even in inaccessible regions.

Tech behemoths like Meta Platforms Inc META and Alphabet Inc GOOGL have attempted to bridge the digital divide in Africa. 

However, projects like Facebook's high-altitude drone and Google's Loon have not achieved the desired impact. 

Starlink's network of small satellites, communicating through user terminals, presents a viable alternative promising to connect the vast and diverse African continent effectively.

Jumia's experience navigating Africa's complex retail and merchandise landscape amplifies the partnership's potential. 

El Gabry highlighted the company's adeptness in establishing business models and transportation networks, essential assets in rolling out Starlink's services. 

The collaboration is poised to enhance internet accessibility, fostering digital inclusion and economic development across the continent.

In August, Jumia reported a second-quarter FY23 sales decline of 15.4% year-on-year to $48.50 million, missing the consensus of $48.70 million.

Orders decreased by 36.5% Y/Y to 6.5 million, and quarterly active consumers fell 28.1% to 2.4 million.

Price Action: JMIA shares are trading higher by 5.30% at $2.78 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.