Jumia Technologies AG, a leading African e-commerce platform, has officially announced its decision to shut down operations in South Africa and Tunisia by the end of 2024. This strategic move is part of Jumia’s long-term goal to optimise resources and focus on markets with stronger growth potential, including Nigeria, Kenya, and Ghana.
Shifting Focus to Stronger Markets
Jumia’s decision to exit South Africa and Tunisia highlights the company’s shift toward markets that offer better growth opportunities. Despite operating under the Zando brand in South Africa, the company’s presence in these two countries has not significantly contributed to its overall performance. In contrast, markets like Nigeria and Egypt have shown greater promise for future expansion.
Contribution to Overall Business
According to Jumia’s report, South Africa contributed only 3.5% of total orders and 4.5% of gross merchandise value (GMV) for the year ending December 31, 2023. Similarly, Tunisia accounted for 2.7% of orders and 3.0% of GMV in the first half of 2024. These figures reflect the limited impact of these markets on Jumia’s overall business.
CEO’s Statement on the Decision
Jumia’s CEO, Francis Dufay, stated that the decision to close operations in South Africa and Tunisia was challenging but essential for the company’s long-term growth strategy. “Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability. After a thorough analysis, we made the difficult decision to exit these markets,” Dufay explained.
Challenges in South Africa and Tunisia
Dufay further emphasised the competitive and macroeconomic challenges faced in South Africa and Tunisia, which limited Jumia’s ability to scale in these countries. The company found it difficult to achieve sustainable growth, given the economic constraints and competitive landscape in both markets.
Appreciation for Local Teams
Despite the closure, Jumia expressed gratitude to its employees, partners, and suppliers in South Africa and Tunisia for their dedication over the years. “Decisions like these are never easy, and we are extremely grateful to our team members in both countries, who worked tirelessly to serve our customers every day,” Dufay added.
Plans Moving Forward
Jumia’s operations in South Africa and Tunisia are expected to cease by the end of 2024. As the company refocuses its efforts on key African markets, it hopes to achieve higher profitability and sustainable growth in the years to come.
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