Jumia Technologies is set to close its South African online fashion retailer, Zando, and cease operations in Tunisia by the end of the year.
The move is part of a strategic shift to concentrate on more promising markets, CEO Francis Dufay revealed in an interview.
To streamline operations and achieve profitability, Jumia is implementing aggressive cost-cutting measures. These include reducing staff, exiting everyday grocery and food delivery services, and scaling back non-core delivery operations.
“The performance of these countries didn’t align with the group’s strategic objectives,” said Dufay, pointing to macroeconomic challenges, a highly competitive environment, and limited growth potential in South Africa and Tunisia.
He emphasized that the decision allows Jumia to focus resources on nine other key markets, where the company sees stronger prospects for growth and profitability. These markets include Egypt, Kenya, Morocco, and Nigeria.
Dufay expressed confidence that success in these core regions will offset the volumes lost from exiting South Africa and Tunisia. He noted that the two markets represented only 2.7 per cent of total orders and 3 per cent of Gross Merchandise Value (GMV) in the first half of 2024.