Jumia Technologies AG, a prominent e-commerce platform in Africa, has announced its strategic decision to close operations in South Africa and Tunisia, under the Zando brand, by the end of 2024. This move comes as part of Jumia’s efforts to optimize resources and concentrate on markets with stronger growth potential across the continent.
Despite being operational in these markets, recent data revealed that South Africa and Tunisia collectively contributed only 3.5% and 2.7% of total orders, and 4.5% and 3.0% of Gross Merchandise Value (GMV) for the year ended December 31, 2023, and the six months ended June 30, 2024, respectively. Francis Dufay, CEO of Jumia, emphasized that this decision follows a rigorous evaluation aimed at enhancing operational efficiency and driving the company towards profitability.
“Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business,” stated Francis Dufay. “After careful analysis, we have decided to discontinue operations in South Africa and Tunisia. Both markets have faced challenging competitive and macroeconomic conditions, limiting their growth potential and failing to meet our expectations.”
Acknowledging the contributions of the local teams, Dufay expressed gratitude: “Decisions like these are never easy, and we are immensely thankful to our team members, suppliers, vendors, and logistics partners in South Africa and Tunisia for their dedication and service to Jumia.”
Jumia plans to redirect resources previously allocated to South Africa and Tunisia towards its remaining nine markets. This strategic reallocation aims to accelerate overall growth and improve operational effectiveness across its pan-African footprint. The closure of operations in these markets is expected to be completed by the end of 2024.
Jumia, established as a leading e-commerce platform in Africa, operates across 11 countries, offering a marketplace connecting over 64,000 sellers with customers, a robust logistics network for efficient delivery, and JumiaPay, a proprietary payment service facilitating transactions within select markets. The company remains committed to leveraging technology to enhance everyday life across the continent by providing innovative and affordable online services.