On Thursday, October 17, Jumia announced that it will stop its operations in South Africa and Tunisia by the end of 2024. This decision will help the company focus on places where it can grow more.
Why is Jumia making this change? CEO Francis Dufay explained that after a careful look at the company’s situation, it became clear that South Africa and Tunisia weren’t helping the company succeed as much as expected. In 2023, Jumia’s South African branch, Zando, and its operations in Tunisia made up only 3.5% and 2.7% of total orders. The numbers were getting smaller in the first half of 2024, too.
With growth slowing down and more competition popping up, Jumia believes it’s best to leave these markets behind to use its resources more wisely. “This was a tough decision,” CEO Francis Dufay said, “but we need to focus on areas where we can see sustainable growth.”
Jumia plans to put more energy into countries like Nigeria, Kenya, Egypt, and Morocco, where online shopping is growing quickly. This move is part of Jumia’s bigger plan to make operations smoother and aim for profitability. The company has faced some challenges, like economic troubles and competition from both local and global businesses. In the second quarter of 2024, Jumia reported a 25% drop in revenue compared to the previous quarter, and its overall sales value also went down.
Even with these difficulties, Jumia is feeling positive about the future in Africa’s stronger markets. By concentrating on these areas and continuing to grow its marketplace, delivery services, and JumiaPay platform, the company believes it can get back on track and become profitable again.
