Jumia has announced plans to cease operations in South Africa and Tunisia by the end of 2024, a strategic move aimed at prioritizing markets with greater growth potential.
Following a comprehensive review led by CEO Francis Dufay, it became apparent that the contributions from these two regions were minimal. In 2023, Jumia’s South African subsidiary, Zando, and its Tunisian operations accounted for only 3.5% and 2.7% of total orders, respectively, with their gross merchandise value (GMV) showing a steady decline into the first half of 2024.
Faced with stagnating growth and increasing competition, Jumia concluded that exiting these markets was necessary for improving operational efficiency. Dufay described the decision as challenging but essential for the company’s focus on areas with sustainable growth prospects.
Moving forward, Jumia intends to concentrate its efforts on core markets such as Nigeria, Kenya, Egypt, and Morocco, where the eCommerce landscape is significantly more robust. This strategy aligns with Jumia’s broader objective to streamline operations and achieve profitability amid challenging market conditions, including economic pressures and fierce competition from both local and international players.
In Q2 2024, Jumia reported a 25% decline in revenue compared to the previous quarter, alongside a decrease in GMV. Despite these hurdles, the company remains optimistic about its future in Africa’s more promising markets. By focusing on enhancing its marketplace, logistics network, and JumiaPay platform, Jumia is hopeful about regaining momentum and achieving profitability in the long term.
