Jumia Technologies, the Africa-focused e-commerce giant, will close its South African online fashion retailer Zando and exit its Tunisian operations by the end of 2024, as part of a strategic shift towards more promising markets. CEO Francis Dufay announced the move as part of broader efforts to streamline operations and focus on profitability.
Jumia is aggressively reducing costs, including cutting head count, exiting low-margin businesses such as grocery and food delivery, and scaling back delivery services unrelated to its core e-commerce operations. Dufay explained that the decision to leave South Africa and Tunisia was driven by complex macroeconomic challenges, intense competition, and low potential for growth and profitability in these markets.
“The trajectory of the countries did not align with the strategy of the group,” said Dufay. “This allows us to refocus resources on our other nine markets where we see more potential for scale and profitability.”
Jumia’s remaining key markets include Egypt, Kenya, Morocco, and Nigeria. Dufay expressed confidence that success in these regions could easily offset the loss of business from South Africa and Tunisia, which together accounted for only 2.7% of total orders and 3% of Gross Merchandise Value (GMV) for the first half of 2024.
Zando, founded in 2012, had grown into a well-known fashion platform in South Africa, while Jumia’s Tunisian operations have been active for a decade, selling general merchandise. Both businesses will hold clearance sales before shutting down, with no plans to sell them.
The closures will affect approximately 110 jobs, though some employees may be reassigned to other parts of Jumia’s business. This move follows a similar trend in South Africa’s retail sector, with the country’s largest online retailer Takealot recently selling its Superbalist fashion business due to rising competition from fast-fashion e-commerce players like Shein and Temu.
Dufay acknowledged that South Africa’s competitive landscape made growth potential more challenging.
