Jumia has announced plans to shut down its operations in South Africa, where it operated under the brand name Zando, and Tunisia by the end of 2024.

This move is aimed at optimising resources and focusing on markets with stronger growth potential across the continent, which include Nigeria and others.

The company in a statement yesterday, said the decision came as it evaluates its operations in the two countries, which accounted for a small share of the company’s overall business.

According to Jumia, for the year ended 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. J

Jumia said it decided to reallocate resources to higher-performing markets to significantly enhance the company’s operational efficiency and accelerate growth.

Commenting on the decision, Jumia CEO, Francis Dufay, described the exits as a difficult decision.

“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,” he said.