Jumia Closes Operations in South Africa and Tunisia to Strengthen Other Markets

Jumia Technologies AG, an e-commerce platform, has announced its decision to shut down operations in South Africa and Tunisia by the end of 2024.

This move is said to be part of the company’s broader plan to optimise resources and focus on markets with stronger growth potential across the continent, including Nigeria, Algeria, Egypt, Ghana, Ivory Coast, Kenya, Morocco, Senegal, and Uganda.

Jumia, which operated under the brand name Zando in South Africa, revealed that the two countries accounted for only a small fraction of its overall business.

In a statement released yesterday, the company noted that South Africa contributed just 3.5 per cent of total orders and 4.5 per cent of gross merchandise value (GMV) for the year ending December 31, 2023, while Tunisia accounted for 2.7 per cent of total orders and 3.0 per cent of GMV in the first half of 2024.

Jumia’s CEO, Francis Dufay, described the decision to exit both markets as a difficult one but necessary for the company’s long-term strategy.

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“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,” Dufay said.

He further explained that the competitive and macroeconomic conditions in both countries had limited their growth potential, making their contributions negligible to Jumia’s overall performance.

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

The Company expects to cease operations in both South Africa and Tunisia by the end of 2024.

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