Starlink and Jumia Join Hands to Expand Services in Nigeria and Kenya

Billionaire Elon Musk's satellite company, Starlink, is set to collaborate with e-commerce company Jumia Technologies AG to widen its satellite broadband services across Africa.

Jumia, alongside its partners Goldman Sachs Group Inc. and Pernod Ricard, will work to provide Starlink's satellite terminals and equipment in some selected African countries. The launch is expected to take place in Nigeria in the coming weeks. This announcement was made known by Jumia's Chief Commercial Officer, Hisham El Gabry.

Since 2012, when Jumia started, it has continued to grow, making the company Africa's leading e-commerce store. With this, the company sets itself as the perfect destination for individuals to purchase this equipment.

El Gabry Said, 

• We have seen Starlink do these types of deals in Southeast Asia and South America, and now Africa will also have the opportunity to access fast-speed internet services.

• The plan is to start selling through our sites and agents in Nigeria this month, and then Kenya.

Bloomberg said that the partnership will assist Starlink in selling terminals in areas that lack formal addresses and city mapping.

The terminals that Starlink sought to sell are capable of bonding to low-earth orbit satellites. Additionally, they have the potential to deliver a better broadband experience to continents that suffer from low internet penetration.

Although companies like MTN Group Ltd. and Vodacom Group Ltd. have traditionally been the primary broadband providers in Africa, the challenge of expanding infrastructure into remote areas has remained a considerable hurdle for telecom providers.

In the past, telecom providers like MTN Group Ltd. and Vodacom Group Ltd. have been the key players in providing broadband services in Africa.

However, other tech companies have made attempts to provide high-speed internet services in Africa but have remained unsuccessful, leading to a return to traditional methods such as undersea cables and fiber optics.

Big tech like Meta Platforms Inc.’s Facebook made an attempt to construct a gigantic drone to supply high-altitude connectivity to the African continent, but it didn’t go well as it was grounded. In the same vein, Alphabet Inc.’s Google started a project called Loon, which was later removed two years ago.

Musk's satellite company network is reported to house other small satellites that communicate through its user terminals. A standard Starlink terminal is reported to cost 435,000 Naira ($557) in Nigeria.

El Gabry added, 

• We had to establish our own business models and transportation network, even mapping to a certain extent when we started building an African e-commerce business. 

• So we have the needed experience in navigating the retail and merchandise landscape in Africa.

El Gabry concluded by saying Jumia plans to eventually sell Starlink’s products in the 11 African countries in which it operates.