Jumia Technologies AG, Africa’s leading e-commerce platform, has announced plans to cease operations in Algeria by the first quarter of 2026, marking the latest step in a broader geographic recalibration aimed at strengthening profitability across the continent.
The company cited challenges in the Algerian market and signaled its intent to concentrate resources on its strongest performing markets, particularly Nigeria, where e-commerce growth and operational efficiency are more favorable.
This move follows Jumia’s earlier exits from South Africa and Tunisia, highlighting a pattern of strategic retrenchment in markets where operational hurdles outweigh growth potential. According to company statements, Algeria contributed only about 2 percent of Jumia’s Gross Merchandise Value (GMV) in 2025, emphasizing its limited impact on the group’s overall business performance.
The decision to exit Algeria comes amid persistent operational challenges. Restrictive trade policies, import controls, and a predominantly cash-based retail environment have complicated growth for Jumia, making it difficult to achieve scalable, profitable operations. The company has faced hurdles in managing logistics, supply chains, and payment processes, all of which are essential for sustaining a competitive e-commerce platform in Africa.
As part of the exit process, Jumia expects to incur one-time costs, including severance payments to employees, lease terminations, and liquidation of local assets. While these measures represent short-term expenses, management views them as necessary to optimize long-term returns and redirect investment toward markets with clearer profitability paths.
Nigeria remains a focal point for Jumia’s expansion strategy. The country continues to exhibit strong e-commerce adoption, robust mobile and internet penetration, and growing consumer demand for online retail, providing a more conducive environment for scaling operations. By reallocating resources and capital toward high-potential markets, Jumia aims to strengthen its financial sustainability and enhance shareholder value.
Analysts note that Jumia’s approach reflects a broader trend among African e-commerce companies, which often face a fragmented and challenging market landscape. While some countries offer substantial growth opportunities, others present regulatory and logistical barriers that make it difficult to achieve operational efficiency. Exits from underperforming markets, therefore, allow companies to focus on areas with greater potential for scale and profitability.
The decision also underscores the unique challenges of e-commerce in North Africa. Algeria, despite its sizeable population and emerging digital market, presents high operational complexity for online retailers. The reliance on cash transactions, coupled with import restrictions and bureaucratic hurdles, has slowed market adoption and undermined the unit economics critical for sustainable growth. Similar factors influenced Jumia’s exit from Tunisia and the temporary pullback from South Africa.
Despite these challenges, Jumia remains committed to driving digital commerce across the continent. Its continued focus on markets such as Nigeria, Egypt, and Morocco reflects a strategy to consolidate its presence in regions where the e-commerce infrastructure, consumer behavior, and regulatory frameworks are aligned with scalable operations. By honing in on its strongest markets, Jumia aims to deliver more efficient service, expand product offerings, and solidify its position as Africa’s leading online marketplace.
In conclusion, Jumia’s withdrawal from Algeria represents a calculated strategic move rather than a retreat from the continent. While the North African market posed significant operational challenges, the company’s geographic recalibration demonstrates a pragmatic focus on profitability, scalability, and long-term sustainability. Investors and industry observers will watch closely as Jumia reallocates resources to markets where growth prospects and operational efficiency are most promising, ensuring that its African e-commerce strategy remains robust in the face of diverse market conditions.
