Africa-focused e-commerce retailer, Jumia Technologies, will shut down its South African online fashion retailer, Zando and its Tunisian operations by the end of the year.
CEO Francis Dufay revealed that the move is part of a strategic refocus on more profitable markets such as Nigeria.
To achieve profitability, Jumia is implementing aggressive cost-cutting measures, which include reducing its workforce, exiting the everyday grocery and food delivery sectors, and scaling back delivery services unrelated to its core e-commerce business.
SPONSOR AD
“The trajectory of the countries did not align with the strategy of the group,” Dufay explained, citing complex macroeconomic conditions, a competitive landscape, and limited medium-term growth potential in these regions.
- Tron & Cosmos Price Recovery Finds No Takers — Whales Join BlockDAG Presale Dash to $100M
- Shettima heads for Sweden as Nigerians await Tinubu’s return
He said: “We believe it’s the right decision,” emphasising that the move will allow the company to concentrate its resources on the other nine markets where growth prospects are more promising.
Jumia’s remaining markets include Egypt, Kenya, Morocco, and Nigeria. Dufay expressed confidence that success in these regions could help recover volumes lost from the closures in South Africa and Tunisia.
He noted that Zando and the Tunisian operations contributed only 2.7% of total orders and 3% of Gross Merchandise Value during the first half of the year.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
