BREAKING: Jumia to exit South Africa and Tunisia, focusing on core markets
Jumia's decision to exit these markets will reduce its total number of operating countries from 11 to 9, with a majority of its focus now concentrated in West and East Africa.
Jumia, Africa's leading e-commerce platform, will close its operations in South Africa and Tunisia by the end of the year. This decision is part of the company's strategy to focus on high-growth markets with strong potential for profitability that has long proved elusive.
"After a thorough analysis, we decided to close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our overall operations," Francis Dufay, Jumia's CEO said according to a statement.
"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."
Jumia's decision to exit these markets will reduce its total number of operating countries from 11 to 9, with a majority of its focus now concentrated in West and East Africa. The company has stated that South Africa and Tunisia accounted for only 3.5% and 2.7% of total orders, respectively, and 4.5% and 3.0% of GMV.
However, Jumia's recent challenges have been primarily attributed to currency depreciation in key markets like Nigeria and Egypt. In Q2 2024, the value of total orders declined to $170 million despite an increase in the number of orders.
As Jumia prepares for its upcoming earnings report, the company is hoping to restore investor confidence through positive financial results and a rebound in its stock price. To support its growth strategy, Jumia has recently raised nearly $100 million through secondary share sales and expanded its supplier base and logistics network.
