Home Business Jumia to Exit South Africa, Tunisia as Part of Strategic Refocus
Business

Jumia to Exit South Africa, Tunisia as Part of Strategic Refocus

Share
Share

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.

ATTENTION: Click HERE to join our WhatsApp group and receive News updates directly on your WhatsApp!

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.

READ ALSO: Jumia Appoints Sunil Natraj New CEO for Nigeria

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.

 

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
NNPCL to Hand Over Nigerian Refineries to Private Firms
Business

NNPCL Slashes Fuel Price to N895 per Litre Amidst Market Competition

NNPCL has reduced the pump price of premium motor spirit (PMS) to...

Business

Naira Currency Appreciates Against US Dollar Amid Policy Reforms

The Nigerian currency, Naira, has appreciated by ₦4.59 against the US dollar,...

Business

Mauritania’s Sidi Ould Tah Elected AfDB President, Pledges to Boost Africa’s Growth

Sidi Ould Tah from Mauritania has been elected as the ninth president...

Business

NLO Slaps Two-Year Ban, Heavy Fines on Four Clubs for Match-Fixing

NLO player ban: Upholding Integrity on the Pitch. How the Suspensions Reshape...

5win
RocketplayRocketplay casinoCasibom GirişJojobet GirişCasibom Giriş GüncelCasibom Giriş AdresiCandySpinzDafabet AppJeetwinRedbet SverigeViggoslotsCrazyBuzzer casinoCasibomJettbetKmsauto DownloadKmspico ActivatorSweet BonanzaCrazy TimeCrazy Time AppPlinko AppSugar rush