Jumia Technologies AG, Africa’s largest e-commerce platform, has announced plans to cease its operations in South Africa and Tunisia by the end of 2024.
The company, which operated under the brand name Zando in South Africa, made the strategic decision to focus on more promising markets across the continent, including Nigeria, as part of its resource optimisation efforts.
In a statement released on Wednesday, Jumia explained that this move comes after evaluating the performance of its operations in both countries, which contributed minimally to the company’s overall business.
For the year ending December 31, 2023, and the first half of 2024, South Africa and Tunisia represented just 3.5% and 2.7% of total orders and 4.5% and 3.0% of gross merchandise value (GMV), respectively.
Jumia CEO, Francis Dufay, acknowledged the challenging nature of the decision, stating, “Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability.
“After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our overall operations.”
Dufay further explained that competitive pressures and macroeconomic factors had limited growth in both markets, falling short of expectations.
He expressed gratitude to the employees, suppliers, and partners in both countries, saying, “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 believes that reallocating resources to its remaining nine markets across Africa will enhance operational efficiency and foster greater growth.
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Publish date : 2024-10-17 12:23:43
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