Jumia, a leading African e-commerce company, plans to shut down its South African fashion retailer, Zando, and its Tunisian operations by the end of the year. As part of its strategic restructuring efforts, the company plans to focus on more profitable markets, particularly Nigeria.
The closures will result in approximately 110 job losses, although some employees may be transferred to other divisions. Clearance sales will be held before the shutdown, and Jumia has no immediate plans to sell either operation.
Jumia’s CEO, Francis Dufay, pointed to challenging macroeconomic conditions, competitive markets, and limited growth potential as reasons for the decision. “The trajectory of the countries did not align with the group’s strategy,” he explained.
In line with its cost-cutting initiatives, Jumia has reduced its workforce and scaled back operations, including exiting grocery and food delivery services. These measures aim to help the company achieve profitability in its core e-commerce business.
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Zando and Tunisia accounted for only 2.7% of total orders and 3% of Gross Merchandise Value (GMV) during the first half of the year. With these closures, Jumia will concentrate its efforts on its remaining markets, including Egypt, Kenya, Morocco, and Nigeria.
Jumia’s second-quarter 2024 financial results reflected a 17% revenue decline, primarily due to regional currency devaluations. Despite this, the company saw a 15% increase in revenue on a constant currency basis, highlighting strong underlying performance. GMV grew by 35% in constant currency, although reported figures showed a 5% decline.
As Jumia navigates its restructuring process, it remains committed to optimizing its operations, improving cash efficiency, and enhancing customer engagement to drive sustainable growth across its remaining markets.
