Jumia exits South Africa and Tunisia to focus on Nigeria, other markets 

This strategic move is aimed at optimizing resources and focusing on markets with stronger growth potential across the continent, which include Nigeria and others.

The company in a statement released on Wednesday, said the decision came as Jumia evaluates its operations in the two countries, which accounted for a small share of the company’s overall business.

According to Jumia, for the year ended December 31, 2023, and the first half of 2024, South Africa and Tunisia contributed just 3.5% and 2.7% of total orders, and 4.5% and 3.0% of gross merchandise value (GMV), respectively.

Jumia believes that reallocating resources to higher-performing markets will significantly enhance the company’s operational efficiency and accelerate growth.

Commenting on the decision Jumia CEO Francis Dufay, described the exits from the two markets as a difficult decision.

“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 close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our overall operations.  

“Furthermore, competitive and macroeconomic conditions in both markets have limited each country’s growth potential and their contribution to our overall business has not aligned with expectations.  

“Decisions like these are never easy and we are extremely grateful to team members in both countries, who worked tirelessly to serve our customers every day. We are also grateful to our suppliers, vendors, and logistics partners in these markets. We deeply thank them for their hard work and service to Jumia,” he said.

The e-commerce giant believes that refocusing resources on its remaining nine markets across Africa will enable the company to better position itself for growth.

With the plans to exit South Africa and Tunisia, Jumia will be focusing on its remaining markets comprising Nigeria, Algeria, Egypt, Ghana, Ivory Coast, Kenya, Morocco, Senegal, and Uganda.

The company would later discontinue its food business, Jumia Food, which was described as unprofitable.