Jumia To Exit South Africa and Tunisia, Plans On Focusing On Other Profitable Markets

Jumia Exit South Africa: Jumia Technologies AG, Africa’s leading e-commerce platform, has announced plans to shut down its operations in South Africa, where it operated under the brand name Zando, and Tunisia by the end of 2024.

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

Jumia Exit South Africa and Tunisia

The e-commerce firm operates in 14 countries, including Egypt, Kenya, Morocco, Nigeria, Uganda, Tunisia, Algeria, Ivory Coast, and South Africa.

CEO Francis Dufay highlighted the reasons behind the move.

The trajectory of the countries did not align with the strategy of the group,” Dufay explained, citing complex macroeconomic conditions, a competitive landscape, and limited medium-term growth potential in these regions. 

He added, “We believe it’s the right decision,” emphasizing that the move will allow the company to concentrate its resources on the other nine markets where growth prospects are more promising.”

Also Read: Jumia’s Share Price Falls after Poor Revenues in Q2 2024

The Exit Caused By Low Profit

Dufay said the organization’s success in other regions, would “easily enable us to recover” lost volumes from South Africa and Tunisia. 

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 respectively. 

Jumia said it decided to reallocate resources to higher-performing markets to significantly enhance the company’s operational efficiency and accelerate growth.

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