South African telecommunications giant, MTN Group on Friday, October 30, 2020, announced the sale of its stake in Jumia, one of Africa’s largest eCommerce firms.

MTN says it’s making a net proceed of $142.31 million dollars from the sale.

MTN said in August it had filed with the New York Stock Exchange to prepare for a secondary sale of Jumia shares as part of a divestment plan aimed at simplifying its portfolio over the next three to five years.

"The group has now fully exited its 18.9% investment in Jumia," MTN said in a statement.

"We are proud to have been a partner in the evolution of one of Africa's pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets," it continued.

But it has so far failed to make a profit, and its shares have since fallen by two thirds, also partly driven by a short-seller casting doubt on its sales figures.

MTN did not specify what the funds would be used for, but its divestment aims include paying down debt.