African e-commerce company Jumia will close operations in Algeria this quarter as part of a cost-cutting strategy as it comes under mounting pressure from Chinese competitors Temu and Shein.
The planned closure comes after Jumia — which is headquartered in Nigeria — narrowed losses while growing revenue last year. It said the results were based on “a more stable macro environment and local currencies,” singling out Nigeria, where inflation has stabilized, for “standout performance.” Jumia, whose years-long pursuit of a leaner business saw it close shop in South Africa and Tunisia in 2024, expects to grow sales volumes by up to 32% this year, attaining positive cash flow in the fourth quarter.
Africa’s digital commerce scene faces increased competition from the entry of Temu and Shein. Both have upended local incumbents in South Africa, for example, even with Amazon already on the scene.
