Jumia Group has announced plans to cease operations in South Africa and Tunisia by the end of the year. CEO Francis Dufay explained that these regions' challenging macroeconomic environment, competitive pressures, and limited growth prospects drove the decision.
The South African market, where Jumia operates as an online fashion retailer under the Zando brand, and the Tunisian market together accounted for only a tiny fraction of Jumia's total orders and Gross Merchandise Value (GMV).
By exiting these markets, Jumia aims to reallocate resources to its remaining nine markets, including Egypt, Kenya, Morocco, and Nigeria, where it sees more promising trends in scale and profitability.
The closures will result in approximately 110 job cuts, although some of Jumia's employees may be relocated within the company. This decision follows recent cost-cutting measures by Jumia, including reducing headcount and exiting non-core services like everyday grocery items and food delivery.
Jumia's strategic shift reflects its commitment to achieving profitability by focusing on its core e-commerce business across Africa. The company continues to adapt to the dynamic e-commerce landscape, seeking opportunities that align with its long-term growth objectives.
