Jumia Technologies Shuts Down South African and Tunisian Operations, Focusing on Nigeria
Dateline: October 16, 2024 – Jumia Technologies, a leading e-commerce retailer in Africa, has announced that it will shut down its South African online fashion retailer Zando and its Tunisian operations by the end of the year. The company is refocusing its efforts on more profitable markets, including Nigeria.
According to CEO Francis Dufay, this strategic decision is part of Jumia’s efforts to achieve profitability. To achieve this goal, the company is implementing aggressive cost-cutting measures, including reducing its workforce, exiting the everyday grocery and food delivery sectors, and scaling back delivery services unrelated to its core e-commerce business.
These measures are designed to help Jumia streamline its operations and increase profitability in the long run. The company is betting on its core e-commerce business in Nigeria, which has proven to be a lucrative market for the company.
The news comes as a surprise to many, but industry insiders believe that Jumia is making a smart move by refocusing on its core business. By cutting its losses in other markets, the company can concentrate its resources on growing its Nigerian operations and potentially achieve greater success in the region.
Jumia’s decision to shut down its South African and Tunisian operations may be a setback for local businesses, but it also presents an opportunity for companies in these markets to step up and fill the gap left by the departing e-commerce giant.
In a statement, Jumia said: "We are excited about our new strategy and its potential to drive growth and profitability. We are committed to making this transformation happen and delivering long-term value to our shareholders."
As the e-commerce landscape in Africa continues to evolve, Jumia is taking a bold step towards a more focused and profitable future. Only time will tell if this strategy pays off, but one thing is certain – the company is putting its faith in Nigeria as a key market for its growth and success.