…to focus on Nigeria, others
Jumia, a prominent e-commerce platform in Africa, has revealed plans to shut down its South African online fashion retailer, “Zando,” by the end of the year.
In an interview with Reuters on Tuesday, Francis Dufay, the CEO of Jumia, also disclosed that the company’s operations in Tunisia would be closed to concentrate resources on other markets.
Jumia currently operates in 14 countries, including Egypt, Kenya, Morocco, Nigeria, Uganda, Tunisia, Algeria, Ivory Coast, and South Africa.
Dufay explained that the decision to exit the South African and Tunisian markets was influenced by “complex macroeconomic conditions,” a competitive landscape, and “low medium-term potential for growth and profitability.”
Dufay stated, “The trajectory of the countries did not align with the strategy of the group.” He further commented, “We believe it’s the right decision. It enables us to refocus our resources on the other nine markets, where we see more promising trends in terms of scale and profitability.”
He emphasized that the company’s success in other regions would “easily enable us to recover” the volumes lost from South Africa and Tunisia. He noted, “These two businesses accounted for only 2.7% of total orders and 3% of gross merchandise value in the six months ended June 30.”
Dufay added that there are no plans to sell either operation, with both expected to hold clearance sales before closing.
The closures will impact about 110 employees, though some may be reassigned to other roles within the company.
Dufay acknowledged that growth potential in South Africa is “definitely more difficult” due to a highly competitive environment.
Founded in 2012, “Zando” has established itself as a prominent online fashion platform in South Africa. In Tunisia, Jumia has been operating for a decade, offering a wide range of general merchandise under its brand.
