Jumia Restructures to Compete in Africa’s E-Commerce Market
Jumia is undergoing a major strategic shift as it works to rebuild investor trust, sharpen its focus, and return to profitability by 2027. Once valued at over $1 billion during its 2019 IPO, the African e-commerce platform has seen its market cap fall to around $400 million.
Since taking over as CEO in late 2022, Francis Dufay has led a restructuring effort aimed at cutting costs and streamlining operations. The company has exited five markets, reducing its footprint from 14 countries to nine, and downsized its workforce to become more efficient. “We must deliver the numbers. Execution will rebuild our credibility,” Dufay told the Financial Times.
Jumia is also adjusting its business model to respond to growing competition from Chinese platforms like Temu and Shein. Rather than compete directly, Jumia is building partnerships. A 70-person team in Shenzhen is now helping integrate Chinese sellers onto its platform. These merchants currently account for about one-third of Jumia’s total sales, offering low-cost goods across categories like fashion and electronics.
“We believe we can fight them,” said Dufay of Temu and Shein. “We have more diverse product offerings in categories they can’t offer, we’re more tailored to the market, and we have competitive, productive offerings in their categories from our international sellers.”
The company sees an opportunity in being more localized than global rivals. Dufay says Jumia offers products and services tailored to African consumers that international platforms often miss. Nigeria remains the company’s most promising market, with growth plans extending to Kenya, Uganda, and Egypt.
“My focus is very simple: we have to deliver the numbers. The target is break-even in 2027,” Dufay concluded.
Despite challenges such as weak infrastructure, low internet access, and currency volatility, Jumia is positioning itself as a bridge between global suppliers and Africa’s underserved consumers. The strategy focuses on operational discipline, localized offerings, and targeted expansion, a shift Jumia hopes will lead to sustainable growth and renewed investor confidence.