tv Business Deutsche Welle August 21, 2019 7:15pm-7:31pm CEST
under the top story. of british prime minister barak johnson seems rather than talks to his chums about i cannot cope any sections without trust johnson not call to help me negotiate a breadstick deal i've got to get you to scrap the box cutters plot to avoid a hospital in. the next year and b.w. the struggle to build what could the world suck not just a trade off that's indeed business south africa i'll be back at the top because i'm going to. is going to go on a just you know a good day nothing would change you know the banks pay you know why and so was the language of the bank the money. speaking the truth global news that matters g w made for mines.
loco to the girl next you to chant. the final story. with exclusive. the must see consuming parts culture cura. curious minds. do it yourself networkers. so subscribing and don't miss out. on much scope is there for e-commerce in africa one of the continent's most prominent players to knock me off. its customer base but revenue remains below expectations also coming up it would be the world's largest economic block was $3.00 trillion dollars it's a conference to brief law. into the african continent of free trade agreement.
welcome to business africa and the lead good to have you with us and one of africa's most talked about e-commerce companies presented a mixed bag off quarterly results today dimia technologies which is listed on the new york stock exchange reported a net loss of some 67000000 euros in the 2nd quarter while the number of active users was up 1600000000 from a year ago. tumbled to 12 percent following the earnings announcement. it has often been called the african i'm a zone the online retailer jew me sells a broad variety of goods founded in 2012 and listed on wall street in 2019 the company boasts 4 and a half 1000000 customers in fast growing markets such as the nigerian capital legace until now traditional brick and mortar retailers have held sway across the african continent just one percent of goods are sold online. today we are present
in 14 countries in africa these 14 countries and companies almost 700000000 people and we have more than 6000 employees working at your me more than 80000 sales people who sold on germany last year and several 1000000 customers are used to me or to help them access these products and services. founded by 2 french entrepreneurs and with headquarters in both germany and dubai the online retailer faces growing competition from domestic rivals in its african markets. there are more than $260.00 e-commerce startups fighting for customers in $23.00 different african countries on june mia has higher production costs compared to its rivals these additional costs are weighing on the company. and i say the distribution market in africa is very particular in physical distribution it's one of the most difficult in the world but if you ask any seller what his biggest challenge is most
of the time it is distribution because there are very few stores in africa and the infrastructure means it is very difficult to distribute the products here. accusations that jr has exaggerated its customer numbers continue to dog the company though there have also been claims that its number of canceled orders and returned items is higher than average some financial experts believe that is anything but a safe investment right now. well for more on that story i'm joined by most as apple from africa good to have you with us moses. all right what do you invest in jumeirah right now well i would say yes on setting conditions i think that. the way jr has been able to penetrate into the african markets yes i would like to invest in it but again it's also comes down to what exactly makes such a company become investable and i think that fortunately they hype that actually to go from the initial entry which was about $14.00 to
a $45.00 bill this actually was normally gave. a quick win but if you look at what jr could have done which is basically looking at their customer base they have enough why didn't they also connect with these people to also invest in such a company that could have actually retain such growth because one of the things we see is that yes they had an i.p.o. a new york what about the local stockist in markets that you know that does raises a question it comes up again and again is june and african company. yeah that is a chile one of the biggest questions that people ask because yes it's a german company that is operating in africa but at the same time we have to say that yes the big market is africa so in a way we can not say fully that it's an african company but it is same thing we can say that it is african focus company and i think we need to also kind of change the
lenses of how we look at dounia because it's just like any other company that is trading enough ago and it is a companies that only recently lost it's a unicorn status that means its value drop below the 1000000000 dollars mark has significant is that it is very significant and again it comes down to what i meant by the trust because for investors to invest in it they need to trust that it is actually going to grow which is also access to being able to be part of that market if you look at other companies like awful people still have access to actually buy into the stock exchange and what we see in is that junior even though the focus in an african market the access to actually even get more investors which are local investors to come want to this is what i call i.p.o. was very difficult so i think that the strategy should be that they should actually build more trust and also build access and well as they build out indefinitely they also need to look at profitability i think that this news of we actually acquire more users but then we're not too profitable makes people have
a mixed feeling so they need to fix this strategy i mean it's good that they have build and user base but i need to actually have more profit coming in the next quarter very sound advice they're getting from us as well from after a link thank you so much for your time thank you so much money and our turning to some of the other business stories making headlines. chinese internet commerce platform alibaba has delayed its listing on the hong kong stock markets and that's the ongoing protests there the company's already listed on wall street simple steps to raise up to $20000000000.00 in hong kong it's now unclear when the listing will take place. san francisco international is the 1st airports to ban plastic water bottles while soft drinks are still available in the plastic containers the water is now also old in cardboard packaging and reusable allen minium bottles that can be refilled at bloodlust in all terminals the banners san francisco's latest effort to reduce plastic waste.
african leaders recently launched to the african continent a free trade agreement the deal is aimed at creating the world's biggest free trade area many hope the trade zone off more than 1000000000 people will spur economic growth on the continent but progress has been slow now the plant's architects hope the agreement will go into force within a year. donors capital accra is hosting a national conference on how to go about implementing africa's biggest free trade area the agreement that preceded it is aimed at fostering times between the continent's 1300000000 people by creating an economic bloc were 3.4 trillion dollars just gushing so far have focused on laying groundwork for implementation and also getting the private sector to appreciate possible benefits but some business owners have doubts and say they're not yet ready to accept free market
forces i believe in the interim deal be shops one begin to flow in. you know in on proportionate measure. then blue begin to food imparted economy and the local industry we are able to compete in the free trade area is currently slated to go into effect in july of 2020 analysts say awareness building will be a crucial factor if it's to be a success if you do this lies every to be a lot why have you no doubt way of orders grow you know but the good thing is that an important forum like this is a starting point and we have to build on that and so the african union now faces a major task getting all stakeholders on board including those in the informal sector before the african free trade deal takes effect. now gone our correspondent. has been following that summit in accra in ghana where he
caught up with the african union's commissioner for trade and industry. to find out more about the african trade j.t. so. we how we with implementation of the african free trade area we have to come up with a supporting instruments one of which is the shed of concessions which is very advanced and then we expected to finish this. before the start of trading then we are also coming up with the regime when the rules of origin work is very very advanced we're going to finalize that than last time listening and non-tariff barriers monitoring reporting and elimination mechanism to ensure that the ready tariff reduction is not replaced by non-tariff barriers which is very very very very advanced we're coming up with payments and settlement pressure that trade does a period of time and if when they do transactions and they find out it well coming
up with an african. observatory to give timely information to export and import across africa in addition to generous that exists so this is the preparations that are making and all these will be finalized before the start of treading konami's like nigeria trying to very full the deal was signed. the commitment level nigeria was not deliberate to the. ready they were not they needed to go through a very. national level consultations and other countries. are going through that so this is a part of democrats and they should be congratulated for bringing us so we must be going to 30 nigeria countries undertaking national level consultations we have received a firm commitment from eritrea that the very soon they're also going to sign so you know time we're going to have 55 countries that have signed and we are remaining with countries to give us instruments of that question i'm very confident that come
1st july 2020 all the remaining quint countries who have deposed the instruments of replication and there. how does that even with a huge trade area like the after especially when the region are blocks of. trading among themselves yes. what shop meeting involving the. economy communities and. of the african continent affected area which is the african union commission to get lessons of experience from these regional economy communities to many who still have doubts whether after anyway. what's your take on this whole narrative nobody is going to develop africa but ourselves we should be very confident that if we really work together as a team there's no challenges that cannot be met if you told me they were committed
or the challenges and one of the africans were passionate about africa and i'm very very very confident that. africans have the capacity to create a future. i was. talking with us from the african union facebook's new cryptocurrency libras on the scrutiny from antitrust regulators that's according to the financial times the newspaper says the european commission specific information from those wedding on the digital currency by a question asked on tuesday bloomberg reported to the commission on specific concerns of a close potential anticompetitive behavior related to the associations of facebook and the commission was declined to comment. that was business africa thanks for watching.
the few trying. every journey begins with the 1st step and every. i'm greeted with the 1st word heard from the group. recoat is in germany to learn german and why not with him a simple online on your mobile phone and free shots from the d w z learning course nikos free german made it seem like. this is africa coming up in the next 15 minutes how it is now being shared between the military and civilians in sudan today the top general was sworn in as head of state 10 others top of them civilians were also sworn in as members of the sovereign council that will oversee and new government until the elections. and what nates will cameroon separatist amazonia movement after its leader is sentenced