With an increasing number of young, tech-savvy consumers and rising internet penetration across the continent, Jumia’s strengthened presence could drive significant growth and innovation, ultimately contributing to the development of Africa’s broader eCommerce ecosystem.
On October 16, Jumia Technologies AG, the African eCommerce giant, announced plans to cease its operations in South Africa and Tunisia by the end of 2024. This strategic move aims to optimize resource allocation, allowing the company to concentrate on core markets with higher growth potential, such as Nigeria, Kenya, Egypt, and Morocco. The decision follows a thorough review of Jumia’s operations led by CEO Francis Dufay.
Explaining the move, Dufay said, “After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. The macroeconomic conditions in both markets, coupled with stiff competition, have limited growth potential.” In 2023, Jumia's South African arm, operating under the brand Zando, and its Tunisian operations contributed only 3.5% and 2.7% of total orders, respectively, underscoring their minimal impact on the company’s overall performance.
This closure aligns with Jumia's broader effort to streamline operations and enhance profitability amid challenging market conditions and competitive pressures. As the company refocuses on its core markets, it aims to leverage its marketplace, logistics network, and JumiaPay platform to drive sustainable growth in Africa’s most promising regions. This pivot reflects Jumia's commitment to adapting its strategy to navigate complex market dynamics and return to profitability.
According to the Africa E-Commerce Market Size, Share, Trends 2024-2032 report by the IMARC Group, the market is projected to reach $939.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.4% from 2024 to 2032. This rapid expansion highlights the increasing role that online shopping will play in Africa's future, fueled by rising internet access, growing mobile penetration, and a youthful, tech-savvy population.
Hikmatu Bilali
