Jumia Technologies, an e-commerce company from Africa has closed its business in Tanzania as part of its plans to focus operations in other markets.
According to Jumia, business in Tanzania has not been sustainable for them. The same fate befell its operations in Cameroon a few weeks ago leading to its closure.
Jumia shut down its Cameroon operations this morning, firing its entire staff, no public announcement, no special word from the group or its CEO. The brutality of the news to the staff echoes their management style and is, I believe, one of the reasons for its demise.
— Rebecca Enonchong (@africatechie) November 18, 2019
“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,” read a statement obtained by Techawk.
“While Tanzania has strong potential and we’re proud of the growth we’ve collectively seen stemming from Jumia’s adoption, we have to focus our resources on our other markets. This decision isn’t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.”
Going forward, the New York Stock Exchange (NYSE) listed e-commerce firm says it will continue to support buyers and vendors through its classifieds portal, previously called Jumia Deals. “Thousands of buyers and vendors transact through this portal and we believe it will continue to become increasingly relevant in the future.”
Jumia expanded into the Tanzanian market in 2014. During their entry, Christina Hawley, managing director of new countries at Jumia, said, “We are building up a long-lasting Internet success story. Jumia is now active in ten countries with over 1,500 employees, offering the widest range of products from fashion to electronics.”
“Tanzanians will love our service and we are committed to deliver our products with the highest standards at any time. Now, everyone in Tanzania can just order with a few clicks online and our products will be delivered directly to the customer’s doorstep.”
Jumia is now present in Nigeria, Egypt, Morocco, Kenya, Ivory Coast, South Africa, Tunisia, Algeria, Ghana, Senegal, Uganda, and Rwanda.