Jumia Technologies, the Africa-focused e-commerce retailer, has announced plans to shut down its South African online fashion platform, Zando, and its Tunisian operations by year-end.
CEO Francis Dufay stated that this strategic move aims to concentrate resources on more profitable markets, notably Nigeria.
Dufay explained that the decision was driven by complex macroeconomic conditions and a competitive landscape that did not align with the company’s growth strategy.
He emphasized, “We believe it’s the right decision,” noting that Jumia will implement aggressive cost-cutting measures, including workforce reductions and exiting less profitable sectors such as everyday grocery and food delivery.
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The CEO pointed out that Zando and the Tunisian operations accounted for only 2.7% of total orders and 3% of Gross Merchandise Value during the first half of the year.
Despite their closure, Jumia remains committed to its remaining markets, including Egypt, Kenya, Morocco, and Nigeria, where it sees greater growth potential.
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The impending closures will result in approximately 110 job losses, although some employees may be reassigned within the company. Clearance sales will be held for Zando and the Tunisian operations before their shutdown.
This decision follows a similar move by South Africa’s Takealot, which recently sold its fashion subsidiary, Superbalist, amidst heightened competition from fast-fashion giants like Shein and Temu.
Dufay acknowledged the increasing challenges in South Africa’s retail environment, reaffirming Jumia’s commitment to focus on markets with stronger growth prospects.
