Jumia is closing operations in South Africa and Tunisia to concentrate on profitable markets, especially Nigeria. CEO Francis Dufay states this shift will help the company streamline costs and strengthen its core e-commerce offerings across regions with greater growth potential, like Egypt, Kenya, Morocco, and Nigeria.
Jumia Technologies, the leading e-commerce platform in Africa, has announced its exit from the South African and Tunisian markets as part of a strategic shift to focus on Nigeria and other key regions. CEO Francis Dufay explained that this decision aligns with Jumia’s goal to enhance profitability by concentrating resources on markets with stronger growth potential.
As part of the move, Jumia will close its South African online fashion platform, Zando, and its Tunisian operations by the end of the year. The company is also implementing cost-cutting measures, such as workforce reductions and scaling back on non-core delivery services. Dufay cited challenging macroeconomic conditions and a competitive landscape in South Africa and Tunisia as factors in the decision, noting that these regions account for just 2.7% of Jumia’s orders and 3% of its Gross Merchandise Value.
Instead, Jumia will focus on other African markets, including Egypt, Kenya, Morocco, and its largest market, Nigeria. Dufay emphasized that success in these regions could compensate for the business lost due to these closures. Around 110 employees will be affected by the shutdowns, although some may be reassigned within the company.
