Analysis of financial performance of e-commerce business in Uganda: a case study of Jumia Uganda

Abstract

In recent years, the e-commerce industry in Uganda has faced increasing pressure to improve financial performance due to rising operational costs and stiff competition. This has prompted managers to identify practices that can enhance revenue, control costs and ensure sustainability. The purpose of this study was to assess the financial performance of Jumia Uganda Limited for the period 2022 to 2024. The study aimed at achieving three objectives: to establish the financial performance trends of Jumia Uganda Limited from 2022 to 2024; to identify the challenges of financial performance; and to establish strategies for improving financial performance at Jumia Uganda Limited. The study used a descriptive research design along with a quantitative research approach. A sample size of 120 was used, selected from staff across Operations, Customer Service, Finance, Marketing, IT and Management departments using self-administered questionnaires. Primary data was analyzed using SPSS version 26.0. The study interpreted findings using descriptive statistics of frequencies, percentages, mean and standard deviation. The study found that Jumia Uganda experienced positive financial performance trends in revenue growth, market share and asset utilization, though profitability improvement was moderate. The study also identified major challenges including high logistics and last-mile delivery costs, low consumer trust in online payments and high cash-on-delivery returns, inventory management issues, and intense competition. The proposed strategies included investing in technology, automation and data analytics, improving platform effectiveness, proper financial planning, continuous monitoring, and staff capacity building. The recommendations included enhancing digital payment systems, optimizing logistics and inventory management, and strengthening financial monitoring to improve financial performance at Jumia Uganda Limited.