Kampala, Uganda | By Michael Wandati | Jumia Technologies, the Africa-centric e-commerce giant, plans to shut down its South African online fashion retailer Zando and wind down operations in Tunisia by the end of the year, according to the company’s CEO. This move is part of Jumia’s broader strategy to streamline its operations and concentrate on key markets.
In its pursuit of profitability, Jumia is taking bold steps to cut expenses. The company is reducing its workforce, discontinuing services like grocery and food delivery, and scaling back delivery options that don’t directly support its core e-commerce activities.
These decisions reflect Jumia’s focus on refining its business model and enhancing operational efficiency across Africa.
“The trajectory of the countries did not align with the strategy of the group,” CEO Francis Dufay said, citing complex macroeconomics, the competitive environment and low medium term potential for growth and profitability.
“We believe it’s the right decision,” he added. “It enables us to refocus our resources on the other nine markets, where we see more promising trends in terms of scale and profitability.”
Jumia’s focus now shifts to its stronger markets, including Egypt, Kenya, Morocco, and Nigeria, as it winds down operations in South Africa and Tunisia. According to CEO Francis Dufay, success in any of these key regions could “easily enable us to recover” the lost business from the two exiting markets.
The decision to leave South Africa and Tunisia is backed by data. During the first half of the year, these two markets only contributed 2.7% of Jumia’s total orders and 3% of its Gross Merchandise Value (GMV), underscoring their minimal impact on the company’s overall performance.
Jumia’s decision to shut down zando.co.za, South Africa’s well-established online fashion retailer founded in 2012, and its decade-long operations in Tunisia marks a significant shift for the e-commerce giant.
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Despite the businesses’ longevity, Jumia CEO Francis Dufay confirmed that there are no plans to sell either entity. Instead, both platforms will hold clearance sales before closing their doors.
The closures will result in approximately 110 job cuts, although some employees may be transferred to other areas within the company.
This strategic exit from South Africa comes just after the country’s leading online retailer, Takealot, announced the sale of its fashion platform Superbalist.
The exits reflect growing competition from fast-fashion e-commerce giants like Shein and Temu, which are reshaping the local online retail landscape.
