Jumia, an ‘Amazon’ for Africa has closed its e-commerce operations in Tanzania, after a similar move in Cameroon, raising questions on the future of the firm known for rapid expansion.
Jumia, which looks to be on a path to pivot from eCommerce portals to classifieds platforms in its weaker markets, said in a statement that based on its review of the path to success, it decided to cease operations in Tanzania yesterday, 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.”
The firm added that it would continue to support buyers and vendors through its classifieds portal, previously called Jumia Deals, which will now be the main portal jumia.tz.
Recently, Jumia shut down its eCommerce portal and suspended its e-commerce operations in Cameroon on 18th November with the same view of putting its focus and resources on mature markets.
In a statement, Jumia Co-Founders Sacha Poignonnec and Jeremy Hodara said: “Jumia is grateful to its employees in Cameroon for the hard work over the past five years and we know that Cameroon is not short of talent. The team has fought to change the way business is done and with the support of its employees, the company has proven to be the leading eCommerce in the region. This would not be possible without the combined efforts, great contribution and dedication of our Jumia Cameroon team.“
In Cameroon, Jumia also announced it will continue to support buyers and vendors via its classifieds portal, previously called Jumia Deals and which will now be the main portal jumia.cm.
Though it makes perfect sense for Jumia to close shop and focus on major markets in Africa, Jumia is generally struggling due to poor uptake of e-commerce in Africa.
Jumia, which has positioned itself as the first African tech firm to be listed on the New York Stock Exchange, has seen its share price plummet since a Wall Street debut in April 2019. The firm has missed revenue estimates for the second time in three quarters, according to results announced this month.