Jumia Exits Business in Tanzania Days After Closing Operations in Cameroon
Just few days after exiting Cameroon market, E-commerce site Jumia hasÂ closed shop again in Tanzania. Online retailer Jumia Technologies , dubbed â€œthe Amazon of Africa,â€Â closed shop in the country in order to focus operation in other markets. This cuts its reach to just 12 countries in the continent, which is not a significant share for an e-commerce business that uses big monikers like â€˜the Amazon of Africa.â€™
According to a statement from Jumia, it argues that business in the East African state has not been sustainable, which adds to a series of missteps and bad press the company has been receiving after listing in the NYSE a couple of months ago.
Here is the statement:
Based on our review of the path to success, we have made a difficult decision to cease our operations in Tanzania as of 27th Nov 2019.
While Tanzania has strong potential and weâ€™re proud of the growth weâ€™ve collectively seen stemming from Jumiaâ€™s adoption, we have to focus our resources on our other markets. This decision isnâ€™t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.
Jumia will continue to support buyers and vendors through our classifieds portal, previously called Jumia Deals, which will now be the main portalÂ jumia.tz. Thousands of buyers and vendors transact through this portal and we believe it will continue to become increasingly relevant in the future.
We hope Jumia will not exit more markets, and will miraculously turn things around.