Jumia Technologies, the Africa-focused e-commerce retailer, has announced it will close its operations in Tunisia by the end of the year, in a move aimed at refocusing its efforts on other markets it sees as more promising, Reuters reported on Wednesday, October 16, 2024.
To achieve profitability, Jumia is implementing a cost-cutting strategy that includes layoffs, and abandoning daily grocery products and non-essential delivery services. The company’s CEO, Francis Dufay, quoted by Reuters, points out that the performance of these markets (Tunisia and South Africa) did not meet the group’s expectations, citing complex macroeconomic conditions and a difficult competitive environment.
“We believe this is the right decision. It will allow us to focus our resources on the other nine markets where we see more favorable trends in terms of growth and profitability,” he said.
He also said that the countries’ trajectory was not aligned with the group’s strategy, emphasizing the complexity of the macroeconomy, the competitive environment, and the low potential for growth and profitability in the medium term.
