If there’s any industry that has witnessed tremendous growth, impact and success in recent years, it is the online food delivery sector. Thriving on technology and digitalization, online food service delivery is proving to be one of the best business ideas in recent times. With mergers and acquisitions, the global online food delivery market is estimated to reach $215 billion in 2024.
In Nigeria, what makes the sector enticing is the fact that there’s a huge market awaiting investors. Food is crucial for all, especially the working class in an ever busy environment like Lagos. And any service that can make it available without stress and hassle will be in good business. With an estimated population of 200 million, the Nigerian food segment is estimated to be yielding a revenue of about $33.7 billion. According to data by National Bureau of Statistics (NBS) Lagos residents spent N830 billion eating out in 2019.
This is coupled with the increasing adoption of smartphones which allows customers access services via mobile apps. According to a report by Allied Market Research, the global food delivery mobile app market is expected to hit $16.6 billion by 2023.
The investment of the likes of Jumia in food service delivery is helping to meet the yearnings of customers. Deploying Jumia logistics and technology infrastructure, the platform has been able to drive the reach of online food delivery in Nigeria. Jumia’s impact has further opened up for more investors, with the likes of Gokada and OyaNow feeding some segments of the market. The exploits of these players are shaping the supply chain and are growing the market for new entrants.
Being the market leader, Jumia is also contributing to the growth of the industry with innovative thinking and implementation. In 2020, Jumia launched the Nigeria Food Index Report which is the first of its kind in the segment. The report captured the growing popularity of fast food in Nigeria, and the positive impact as well as prospect for the Nigerian Agricultural sector. According to Jumia, the report will be a continuum as it will be released yearly.
Boost for local restaurants
More importantly, a marketplace like Jumia is having a positive impact on restaurants by giving them access to a wider audience. The platform is also enabling restaurants to stay ahead of their competitors. This was evident during the lockdown imposed by covid-19, when restaurants partnering with Jumia Food were able to sustain their businesses through the Jumia delivery network.
“Sales dropped drastically, companies shut down, and a lot of people lost their jobs. We’re grateful that Jumia kept their operation going; it was reassuring to customers, helped give them options for food at a very uncertain and difficult time, and for vendors like us, it was a huge help to still be able to keep sales going during that period. The sales we got through Jumia helped greatly in keeping our employees paid, and our operation running,” said Pop Singer and CEO, Sooyah Bistro, Bankole Wellington.
Interestingly, the Nigerian Food Index Report also revealed that local Nigerian cuisines lead the preference on Nigerians compared to continental dishes, with 64% of orders being placed for lunch.
In a bid to further drive the growth of online food and beverage delivery in the Nigerian market, Jumia Food expanded its food delivery service to five additional states in Nigeria. The new additions regarded as tier-2 cities on the Jumia Food map, are Minna, Benin City, Kaduna, Abeokuta, Kano, and Ilorin.
In 2020, Jumia also recorded a major service improvement in its existing footprints in Lagos, Port Harcourt, Abuja and Ibadan by increasing its speed of delivery, with an average delivery time as fast as 26 minutes in Port Harcourt, 27 minutes in Lagos, 28 minutes in Ibadan, and 30 minutes in Abuja.
It is an open secret that the food industry is very relevant to the Nigerian economy. With today’s covid-19 realities, the growing popularity of fast food, the crave for convenience, safety and value for money, has opened up opportunities for the food market in Nigeria. No doubt that the contribution of Jumia, the leading ecommerce platform in Nigeria and Africa is helping to explore the food segment of the Nigerian Agricultural sector which has the potential of huge contribution to the Nigerian economy.
By Adedoyin Giwa
Jumia Leads Charge Against Substandard Products, Launches Brands Festival Campaign To Promote Authentic Brands
The campaign, which started on Monday, September 20th and will run through October 3rd, 2021, offers a unique opportunity to consumers nationwide to buy original products from the stores of several top brands such as Samsung, Nivea, Oraimo, Apple, Nike, HP, Adidas, Skyrun, Umidigi, Hewlett Packard (HP), itel, Transsion (Tecno & Infinix), Samsung, Coca-Cola, and Nestle.
Head of Brands at Jumia Nigeria, Moyosore Oduwobi said: “The festival will provide our consumers with a wide range of quality products from top global manufacturers. Today’s consumers want quality and at the most competitive market prices. For this campaign, we have partnered with different international brands to make their products accessible to customers in Nigeria and for them to shop directly from the original product manufacturers and more importantly, save more while doing so.”
The campaign is also providing free shipping to consumers on selected product categories, as well as 10% savings on purchases on the Jumia app if they pay with JumiaPay.
Ecobank Nigeria MD Makes Case For Eurobond Market
The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has described Federal Government’s plan for a Eurobond issuance in the International Capital Market (ICM) as a step in the right direction, stressing that the fundamentals and potentials of the nation’s economy are strong with capacity to meet its debt obligations.
Akinwuntan, who was assessing the global market as Nigeria makes its announcement of multibillion dollar Eurobond offering, during an interview on Arise TV Lagos, said the economy is showing strong trends owing to investments in infrastructure such as road and rail transportation which is giving a lot of positive impact to the overall economy, adding that the private sector is also making remarkable improvement in power sector, telecoms, and information technology.
According to him, “You look at the fundamentals, what is the story of this economy? You look at Nigeria, the fundamentals are strong, coming from the lessons learnt in being a mono product economy which was dependent on oil. We have since embarked on the journey of diversification and we are beginning to show early fruits. Exports are improving, Africa Continental Free Trade Area (AfCFTA)
provides the opportunity to expand that even further. So, you look at the fundamentals, look at the openness of the economy, the transparency of reporting and look at the opportunities to enhance real growth, output, capacity improvements and stability of policies. All these are factors to look at with a view of participating in the economy like that of Nigeria.”
He observed that international borrowing will allow Nigeria as a country to access more foreign currencies, deepen external reserve, allows more confidence in the medium-term planning in the private sector, adding that it allows a bench mark to be established in terms of how funding and investment are priced within the local economy.
“It also gives more rooms for the local economy to be able to breathe a bit more because when the country takes on Euro bond that portion is reduced from local country financing or public sector debt within the country. All these factors play strongly to the benefit of the private sector and the entire economy at large.”
“In the last two quarters, we have seen the global market rebounding from the very deep end of the covid-19 that plagued 2020. We have seen, since the arrival of vaccines, the gradual opening of the global economy such that there is much more optimism now in the market because we have learnt that shutting down the economy is not the best way to handle an epidemic and we have seen support from sovereigns ensuring that there is steady growth within the various economies; supply chain has opened and we have seen in sub-Sahara Africa renewed interest in the Eurobond market in the international debt market; we have seen Benin republic, Ghana, Cote d’ivoire and Kenya all are approaching the market with significant success.
Over subscription in each of them ranges from 200% to 300% and an all high in Kenya close to 600% or six times over subscription. This is a positive period for major economies like Nigeria, which is the lead economy in Africa, to take advantage and invite the global community to hear our story, invest in us and get good returns.”
Citing example with Ecobank’s $300 million Eurobond offer earlier in the year which was over-subscribed by 300 per cent, Akinwuntan advised those approaching international debt market to have clarity of purpose and state clearly their strengths and weaknesses. “We are the first banking entity in Africa to do that in 2021 and it comes from our long-term planning in the economy of Africa; we are the pan African bank and when we look at Africa, Nigeria is a major player.
Quickly we understood that arising from a scenario of pandemic and all-time lows of 2020 is time to look at the brighter side and we stepped out for the $300m US Eurobond offer which met positive response from investors across the globe within the country. We attracted more than 3 times in subscription.
But we kept to the book of doing $300m because it is based on our plan in participating in positioning Nigeria, as the leading export country in the AFCTCA environment in the continent and giving our unique position as the Pan African bank, it was very clear to us and the market responded positively.
Our experience also tells us that, what is critical is to have clarity on your strength, be very frank about your weakness or the areas of concern and how you intend to handle that positively.”
FIRSTBANK EXPANDS ITS INTERNATIONAL MONEY TRANSFER NETWORK, REINFORCES ITS COMMITMENT TO CUSTOMER SERVICE.
In furtherance of the need to expand diaspora remittance inflow into the country, First Bank of Nigeria Limited has increased its network of International Money Transfer Operators (IMTOs), targeted at easing the accessibility of its customers to receive money from close to 100 countries across the world in a safe and secured manner.
With over 750 branches across the country, customers can receive money from the nearest FirstBank branch closest to them.
Over the years, FirstBank has been in partnership with Western Union, MoneyGram, Ria, Transfast, and WorldRemit. The bank is also in partnership with other IMTOs which include Wari, Smallworld, Sendwave, Flutherwave, Funtech, Thunes and Venture Garden Group to promote remittance inflow into the country, thereby putting Nigerians and residents at an advantage in receiving money from their families, friends and loved ones across the world.
Beneficiaries can receive remittance in US dollars in any of our over 750 branches spread across the country. Customers without an existing domiciliary account can have dollar account automatically created for their remittances. You can also receive inflow directly into your account through Western Union.
In addition, FirstBank has launched its wholly owned remittance platform named First Global Transfer product to promote the international transfer of funds across its subsidiaries in sub-Saharan Africa. These subsidiaries include FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.
Reiterating the Bank’s resolve in promoting diaspora remittances, regardless of where one is across the globe, the Deputy Managing Director, Mr Gbenga Shobo said “at FirstBank, expanding our network of International Money Transfer Operators is in recognition of the significant roles diaspora remittances play in driving economic growth such as helping recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses and debt servicing.
We are excited about these partnerships, as it is essential to ensure our customers are at an advantage to receive money from their loved ones and business associates, anywhere they are, across the world.”
FirstBank pioneered international funds transfer and remittances over 25 years ago and has been at the forefront of promoting cross border payments in the country, having started the journey with Western Union Money Transfer. The Bank’s wealth of experience and operation in over 750 locations nationwide gives it the edge in the market.
First Bank of Nigeria Limited (FirstBank) is the premier Bank in West Africa and the leading financial inclusion services provider in Nigeria for over 127 years.
With over 750 business locations and over 120,000 Banking Agents spread across 99% of the 774 Local Government Areas in Nigeria, FirstBank provides a comprehensive range of retail and corporate financial services to serve its over 30 million customers. The Bank has international presence through its subsidiaries, FBN Bank (UK) Limited in London and Paris, FBNBank in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra-Leone and Senegal, as well as a Representative Office in Beijing.
The Bank has been handy at promoting digital payment in the country and has issued over 10million cards, the first bank to achieve such a milestone in the country. FirstBank’s cashless transaction drive extends to having more than 10million people on its USSD Quick Banking service through the nationally renowned *894# Banking code and over 4.5 million people on FirstMobile platform.
Since its establishment in 1894, FirstBank has consistently built relationships with customers focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership. Over the years, the Bank has led the financing of private investment in infrastructure development in the Nigerian economy by playing key roles in the Federal Government’s privatisation and commercialisation schemes. With its global reach, FirstBank provides prospective investors wishing to explore the vast business opportunities that are available in Nigeria, an internationally competitive world-class brand and a credible financial partner.
FirstBank has been named “Most Valuable Bank Brand in Nigeria” six times in a row (2011 – 2016) by the globally renowned “The Banker Magazine” of the Financial Times Group; “Best Retail Bank in Nigeria” for seven consecutive years (2011 – 2017) by the Asian Banker International Excellence in Retail Financial Services Awards and “Best Bank in Nigeria” by Global Finance for 15 years. Our brand purpose is always to put customers, partners and stakeholders at the heart of our business, even as we standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in consonance with our brand vision “To be the partner of the first choice in building your future”.
Our brand promise is always to deliver the ultimate “gold standard” of value and excellence. This commitment is anchored on our inherent values of passion, partnership and people, to position You First in every respect.
Group Head, Marketing & Corporate Communications
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