Kenya: Jumia Shuts Down Operations in Tanzania in Bit to Cost-Cutting Measures

(file photo)
2 December 2019

Nairobi — E-commerce operator Jumia has announced plans to shut down its operations in Tanzania, a week after it closed in Cameroon.

In a statement dated December 1, Jumia said it was cutting its costs since it was expanding in larger African markets that have the potential for e-commerce to be successful.

"We have to focus our resources on our other markets. It is more important now than ever to put our focus and resources where they can bring the best value and help us thrive," reads the statement.

The statement further noted the company stopped conducting its business as of November 27.

Jumia is the largest e-commerce operator in Africa where it conducts business in 12 African countries, with Egypt and Nigeria being the largest markets.

In Cameroon, Jumia did not publicly announce its imminent closure, the move to shut down took many customers and local staff by surprise.

The company said the decision to quit the market was due to unfavorable conditions on their path to achieving success.

Jumia also said it would continue to support buyers and vendors in Cameroon through its online classified portal.

The shutdown of the Tanzanian market came amid denials by the e-commerce form, the organization asserting it had no plans of shutting down African markets.

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