Rising Rivals Sluggish Sales: Why Jumia Is Quitting South Africa And Tunisia

Jumia , Africa's top e-tailer, is set to exit South Africa and Tunisia by the end of 2024 , marking a significant shift in its business strategy. The decision, announced in today's press release, is part of a broader cost-cutting and refocusing effort aimed at streamlining operations and driving profitability.

This move, its latest pull-outs since a flurry of exits out of Cameroon and Tanzania in 2019, highlights Jumia's recalibration amid intensifying competition and challenging market conditions in these regions.

The closures signal Jumia's intention to focus on its nine other African markets, including Egypt, Kenya, Nigeria, and Morocco, where the company sees greater growth potential.

Jumia's CEO, Francis Dufay, acknowledged the difficult but necessary decision, stating, "The trajectory of the countries did not align with the strategy of the group," citing macroeconomic complexities, competitive pressures, and low medium-term growth potential in both South Africa and Tunisia.

Jumia's withdrawal from South Africa comes just months after the local e-commerce landscape was shaken by the official launch of Amazon.co.za. The arrival of the global retail giant in May 2024 brought heightened competition to an already competitive market.