Jumia Technologies has announced plans to shut down operations in South Africa and Tunisia. CEO Francis Dufay confirmed the move and cited macroeconom
Jumia Technologies has announced plans to shut down operations in South Africa and Tunisia. CEO Francis Dufay confirmed the move and cited macroeconomic challenges and strong competition in both South Africa and Tunisia limited growth, prompting the decision to close operations in these countries.
Market optimization
This strategic shift is part of a broader effort to optimize resource allocation and focus on its core markets—Nigeria, Kenya, Egypt, and Morocco—where growth potential is higher. In 2024, Jumia’s South African and Tunisian markets contributed only 3.5% and 2.7% of total orders, respectively, and those numbers declined further in the first half of the year. By narrowing its focus to regions with stronger growth opportunities, Jumia aims to improve its operational efficiency and drive profitability. The company is leveraging its marketplace, logistics, and JumiaPay services to strengthen its position in markets with promising eCommerce potential.
This decision comes as Africa’s eCommerce market continues to grow, with a projected market size of $939.8 billion by 2032, according to a report by IMARC Group. This expansion is driven by increasing internet access, mobile penetration, and a growing population of tech-savvy consumers across the continent. Jumia’s strategic refocus positions it to capitalize on these trends and contribute to the overall growth and development of Africa’s eCommerce ecosystem.