Jumia has announced its decision to discontinue its operations in South Africa and Tunisia in order to focus its resources on more promising markets. The company revealed that for the year ending December 31, 2023, South Africa and Tunisia accounted for only 3.5 percent and 2.7 percent of total orders, and 4.5 percent and 3.0 percent of gross merchandise volume, respectively.
As a result, the company plans to improve its overall operational efficiency by exiting these markets. Francis Dufay, Jumia’s CEO, explained, “Since taking on the role of CEO, I have been working on initiatives to strengthen our business and lead us towards profitability.
After careful analysis, we have made the tough decision to cease operations in South Africa and Tunisia. Both markets contribute minimally to our overall operations, and their growth potential has been limited by competitive and macroeconomic conditions, falling short of our expectations.”
This decision will reduce Jumia’s total operating countries from 11 to 9, with a renewed focus on West and East Africa. Jumia believes that this strategic shift will position the company for accelerated growth and enhanced efficiency.
The company anticipates completing the cessation of operations in South Africa and Tunisia by the end of 2024. Jumia has faced challenges due to currency depreciation in key markets such as Nigeria and Egypt, resulting in a decline in the total value of orders to $170 million in Q2 2024, despite an increase in the number of orders.
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