Jumia closes Tanzania unit amid drop in share price
Dar es Salaam. Online retailer Jumia Technologies , has quit the Tanzanian market, only days after pulling out of Cameroon.
Jumia becomes the second digital trading company to exit the local market after money lender, Tala, closed business last September.
Dubbed “the Amazon of Africa,” Jumia announced yesterday a review of its portfolio had led to shutting its e-commerce business in Tanzania. Reuters reported that Jumia share price has plummeted since a Wall Street debut in April.
“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,” the company said in the statement. Jumia entered the Tanzania market five years ago and its abrupt exit appears like a continuation of a scale back on its-e-commerce operations across Africa. It was not immediately clear what the impact the exit would have on enrolled dealers as well as job loses.
With an e-commerce business similar to Amazon’s and a classified portal like Alibaba’s, Jumia sells its own stock and takes a cut of third-party transactions on its website.
The firm has presence in 12 African markets including Nigeria, Kenya, SA, Egypt, Ghana, Morocco, Uganda, Senegal, Rwanda, Ivory Coast, Tunisia, and Algeria.
