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E-commerce giant, Jumia closes shop in another African country

E-commerce giant, Jumia closes shop in another African country

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E-commerce giant, Jumia closes shop in another African country

In less than one week after it was reported that Jumia has shut down its operations in Cameroon, the company seems to have continued in that path by abandoning yet another African market. According to multiple reports, Jumia has suspended operations in Tanzania – a market it entered five years ago – in what looks like a continuation of the company’s move to cut back on losses incurred so far and focus on other markets in Africa.

A statement from the e-commerce giant about the closure reads;

“Based on our review of the path to success, we have made a difficult decision to cease our operations in Tanzania as of 27th Nov 2019. While Tanzania has strong potential and we’re proud of the growth we’ve collectively seen stemming from Jumia’s adoption, we have to focus our resources on our other markets. This decision isn’t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.”

Jumia’s recently released Q3 2019 report showed that the company is nowhere near profitability despite making a revenue of $44.2 million. As stated in the Q3 2019 report, the so-called “Amazon of Africa” lost $55 million, which is higher than the $45 million the company lost during the same period in 2018.

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E-commerce giant, Jumia closes shop in another African country

With Cameroon and now, Tanzania, out of the picture, Jumia now has “e-commerce” presence in 12 African markets including Nigeria, Kenya, South Africa, Egypt, Ghana, Morocco, Uganda, Senegal, Rwanda, Ivory Coast, Tunisia, and Algeria.

As was the case with Cameroon, Jumia will continue to support buyers and vendors through its classifieds portal known as Jumia Deals.

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