African e-commerce firm Jumia Technologies will cease operations in Algeria by the first quarter of 2026, deepening its strategic pivot toward profitability as competition from Chinese platforms intensifies across the continent.
The move follows earlier exits from South Africa and Tunisia and leaves Jumia operating in eight core markets. Algeria accounted for roughly 2% of the company’s gross merchandise value (GMV) in 2025, limiting its long-term strategic value despite relatively high internet penetration.
Chief Executive Francis Dufay said Jumia ended 2025 with “clear momentum,” citing stronger revenue growth and improving operational discipline.
Nigeria, the company’s largest market, delivered 50% GMV growth in the fourth quarter, with orders rising 33%. Notably, 61% of orders came from secondary cities, reflecting the strength of Jumia’s logistics infrastructure beyond major urban centres.
The company 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 full-year profitability in 2027.
Since late 2022, management has prioritised cost control, exiting underperforming markets, discontinuing grocery and food delivery services and reducing headcount to stabilise finances after its stock lost over 95% of its value from its 2021 peak.
Jumia’s restructuring comes as Temu and Shein rapidly expand in African markets, transforming pricing strategies and consumer expectations.
To remain competitive, Jumia has strengthened sourcing operations in China, opening an office in Yiwu to procure goods directly from manufacturers. International sellers, largely China-based, saw sales surge 82% year-on-year, with approximately 24,000 Chinese vendors now active on the platform.
Dufay maintains that Jumia’s local logistics network, cash-on-delivery option and pickup stations in secondary cities provide resilience against global entrants.
In South Africa, one of Africa’s most developed e-commerce markets, Temu and Shein have made significant inroads, even as global heavyweight Amazon expands locally.
Data from industry reports indicate the two Chinese platforms captured a combined 3.6% share of South Africa’s clothing, textile, footwear and leather market, generating billions of rand in sales. They account for roughly 37% of e-commerce sales in that sector, with Shein alone holding a dominant share in online women’s fashion.
Consumer uptake has been swift, with survey data suggesting roughly one in three South Africans has purchased from Temu.
As competition accelerates, Jumia is betting that a streamlined operational footprint, direct access to global supply chains and infrastructure tailored to African markets will deliver sustainable profitability.
While Chinese platforms bring scale and deep marketing budgets, Jumia’s leadership argues that local market knowledge and logistics depth remain critical competitive advantages.
The next 18 months will be decisive as Africa’s e-commerce market shifts from land-grab expansion to a profitability-driven battleground.
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