African e-commerce company Jumia has announced the closure of its Zando platform in South Africa and its operations in Tunisia, as part of strategic refocusing on more profitable markets.

Jumia's Strategic Decision

Jumia stated that exiting South Africa and Tunisia is part of a response to complex macroeconomic conditions and limited medium-term growth potential in these regions. The CEO noted, 'The trajectory of the countries did not align with the strategy of the group.'

Impact on Employees

The closures will result in approximately 110 job losses, although some employees may be relocated within the company’s other divisions. Jumia confirmed clearance sales before shutdown and currently has no plans to sell these operations.

Jumia's Financial Performance in Q2 2024

In the second quarter of 2024, Jumia experienced a 17% revenue decline due to regional currency devaluations, though on a constant currency basis, revenue rose by 15%. The company reduced its operating loss by 8% and significantly lowered cash burn, illustrating effective cost management.

Jumia continues to adapt to market changes, focusing on core markets like Nigeria, Egypt, and Kenya to strengthen its position in more promising areas.