The withdrawal follows earlier exits from South Africa and Tunisia and leaves Jumia operating in eight markets, signalling a decisive move away from its former expansion-at-all-costs strategy.

Leaner footprint, stronger core markets

Algeria accounted for roughly 2% of Jumia’s gross merchandise value (GMV) in 2025, limiting its strategic importance despite relatively high internet penetration.

Analysts say restrictive trade policies, import controls and a cash-heavy economy have constrained sustainable growth.

The company said the geographic recalibration is expected to enhance operational efficiency and improve resource allocation as it concentrates on markets with clearer paths to profitability.

Chief Executive Francis Dufay said Jumia closed 2025 with “clear momentum,” citing stronger revenue growth, improving customer engagement and continued progress toward profitability.

Nigeria, the company’s largest market, delivered 50% GMV growth in the fourth quarter, with orders rising 33%.

Notably, 61% of orders originated from secondary cities, underscoring the reach of Jumia’s logistics network in areas where global competitors remain less established.

Meanwhile, Jumia narrowed its full-year loss to $60.1 million in 2025 from $97.6 million in 2024 and expects to break even on an adjusted EBITDA basis in the fourth quarter of 2026, targeting its first full-year profit in 2027.

Jumia’s restructuring comes as Chinese platforms Temu and Shein expand rapidly across African markets, reshaping pricing dynamics and consumer expectations.

To strengthen its position, Jumia has expanded sourcing operations in China, opening an office in Yiwu; one of the world’s largest wholesale trade hubs, to procure goods directly from manufacturers and compress costs.

sold from international sellers, overwhelmingly China-based, surged 82% year-on-year, with roughly 24,000 Chinese sellers now active on the platform.

Dufay said Jumia’s logistics network, cash-on-delivery option and pickup stations in secondary cities have helped it withstand mounting competition.

“People thought they would eat our lunch, but it's not a home run that everyone expected. We can actually fight against those platforms in our markets,” he said.

South Africa offers a benchmark for disruption

South Africa, Africa’s most developed e-commerce market, provides the clearest indicator of the scale and speed of Chinese expansion, even as global heavyweight Amazon establishes its presence in the country.

Temu’s parent company generated $34.9 billion in revenue globally and reportedly spent $2 billion on advertising, highlighting the financial muscle behind its international push.

According to a report by the Localisation Support Fund, Shein and Temu captured a combined 3.6% share of South Africa’s clothing, textile, footwear and leather market, generating about 7.3 billion rand ($405 million) in sales.

Together, they account for roughly 37% of the sector’s e-commerce sales, with Shein alone holding around 28% of online women’s fashion.

Survey data indicates that roughly one in three South Africans has made a purchase on Temu, highlighting the platform’s rapid consumer uptake.

Projections suggest their combined market share could rise significantly; potentially approaching 63% of e-commerce retail if current growth trajectories continue.

Although this does not yet constitute continental dominance, the trend mirrors the early disruption patterns seen in global retail markets, where fast-scaling entrants quickly reshape competitive dynamics.

Profitability over expansion

Since taking over in late 2022, Dufay has prioritised cost discipline after Jumia’s stock plunged more than 95% from its 2021 peak, raising investor doubts about the long-term viability of e-commerce on the continent.

The company has exited underperforming markets, dropped everyday grocery and food delivery services, and reduced headcount to lower operating costs.

Fourth-quarter revenue rose 34% year-on-year to $61.4 million, while adjusted EBITDA losses narrowed significantly.

As Chinese platforms accelerate their push into Africa, Jumia is betting that a leaner footprint, direct access to global supply chains and infrastructure built for local realities will position it for sustained profitability. (Business Insider Africa)

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