Jumia Technologies AG, a leading African eCommerce platform, has announced plans to cease operations in South Africa and Tunisia by the end of 2024. This strategic shift is part of the company’s broader focus on optimising resources and concentrating on markets with stronger growth potential.
Following an in-depth review led by CEO Francis Dufay, Jumia determined that its divisions in South Africa, operating under the Zando brand, and Tunisia contributed only 3.5% and 2.7% of total orders in 2023, and accounted for 4.5% and 3% of the company’s gross merchandise value (GMV). A further decline in these figures during the first half of 2024 underscored the limited impact of these markets on the company’s overall business, prompting the decision to exit.
Dufay cited tough macroeconomic conditions and heightened competition in both countries as key factors constraining growth. While acknowledging the difficult decision, he emphasized the need for Jumia to concentrate on markets where it can achieve sustainable growth and improve profitability. The company will now focus on its core markets, including Nigeria, Kenya, Egypt, and Morocco—regions recognized for their robust eCommerce potential.
Jumia’s exit from these underperforming markets forms part of a broader effort to streamline its operations and strengthen its financial position. In recent quarters, Jumia has faced several challenges, including a 25% drop in revenue in Q2 2024 and a steady decline in GMV. In response, the company has been implementing cost-cutting measures, such as closing Jumia Foods in 2023, to reduce losses.
The eCommerce platform remains committed to expanding its marketplace, logistics network, and JumiaPay services in its key markets. With nearly $100 million raised through secondary share sales and investments in its logistics infrastructure, Jumia is optimistic about accelerating growth and returning to profitability in Africa’s most dynamic eCommerce regions.
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