Starlink partners Jumia to expand services in Nigeria, Kenya

AFRICAN BUSINESS AND ECONOMYOctober 2, 2023 at 1:21 PM UTC

Starlink, the satellite company led by billionaire Elon Musk, is forging a strategic partnership with e-commerce giant Jumia Technologies AG to elevate satellite broadband services across the African continent.

Jumia, backed by notable investors such as Pernod Ricard SA and Goldman Sachs Group Inc., is poised to offer Starlink's satellite terminals and kits in specific African countries. The initial rollout is scheduled to commence in Nigeria in the coming weeks, as confirmed by Hisham El Gabry, Jumia's Chief Commercial Officer.

Jumia, with its well-established presence in the market, is positioned as the go-to platform for individuals interested in acquiring these satellite kits. This exclusive sales and distribution arrangement not only cements Jumia's pivotal role in the sector but also bestows upon them a distinct competitive advantage, potentially solidifying their market share and influence across the region. This collaboration signifies a significant step toward expanding reliable broadband connectivity in Africa.

Key Takeaways

The World Bank estimates that only 29% of people in sub-Saharan Africa had access to the internet in 2020. Whereas it is often uneconomical to lay cables or build telecom towers in remote parts of Africa, satellite internet providers can cover these areas at no extra cost after serving their main customers. Hence, Starlink’s promise of high-speed and low-latency connectivity could provide a big boost to the region’s economic activity. But the obvious drawback is the cost for users; pricing will determine to what extent Starlink can penetrate Africa.