Jumia will exit South Africa and Tunisia by the end of 2024 to focus on its West and East African markets.
Both countries have contributed little to the company’s overall performance, with South Africa accounting for just 3.5% of total orders in H1 2024 and Tunisia bringing in only 2.7%.
South Africa’s e-commerce market is mature and competitive. With about 1,995 startups and bigger players like Takealot and Amazon, customers are flush with options
With high competition and little differentiation, customers likely saw Jumia as just another platform. Amazon, which entered South Africa in May, gained popularity among users because it sold rare books.
In Tunisia, the e-commerce market has lesser competition, yet, a lack of trust still poses a problem with many consumers preferring to pay cash on delivery for products.
Exiting those regions is on-brand for Jumia which has been streamlining its business over the past year, shutting down Jumia Food, cutting headcount, and refocusing its business from a previous focus on small ticket items.
By focusing on more promising markets like Nigeria and Egypt, Jumia wants to rebuild investor confidence after seeing a drop in its total order value to $170 million in Q2 2024.
110 jobs could either be cut from Jumia’s South Africa and Tunisia exits, or the affected workers moved to other countries where the company still operates. In its search for profitability, it is clear that Jumia only wants winners.
