Jumia says it plans to end its operations in South Africa, where it operated under the brand name Zando, and Tunisia by the end of 2024.
The aim of the closure according to the company, is to optimise resources, while focusing on markets with stronger growth potential across the continent, which include Nigeria and others.
In a statement released yesterday, Jumia said the decision came as a result of its operations in the two countries, which amounted to only a small portion of the company’s overall business.
Jumia claimed that in the statement that as at December 31, 2023, and the first half of 2024, South Africa and Tunisia contributed just 3.5% and 2.7% of total orders, and 4.5% and 3.0% of gross merchandise value respectively.
Describing the exits as a difficult decision, Francis Dufay, Jumia CEO, said, “Since assuming the role of CEO, I have focused on initiatives aimed at strengthening our business and placing us on a path to profitability.
“After a thorough analysis, we made the difficult decision to close down our operations in South Africa and Tunisia. Both businesses account for a negligible portion of our overall operations. Macroeconomic conditions in both markets have limited each country’s growth potential and their contribution to our overall business has not aligned with expectations.
“Decisions like these are never easy. We are grateful to team members in both countries, who worked tirelessly to serve our customers every day.
“We are also grateful to our suppliers, vendors, and logistics partners in these markets. We deeply thank them for their hard work and service to Jumia.”
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