Jumia ends Algeria operations in latest profitability drive
Jumia has exited Algeria as part of a wider push to improve profitability, narrowing its geographic footprint while investing in direct sourcing to compete with fast-growing Chinese eCommerce rivals.
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Jumia ceased operations in Algeria in February 2026, according to disclosures in its full-year 2025 financial report. The exit marks another step in the eCommerce company’s ongoing effort to streamline operations and continues its strategy of focusing on markets where it believes it has clearer paths to profitability.<br />
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Algeria was one of Jumia’s remaining North African markets, alongside Egypt and Morocco, after the company wound down operations in Tunisia. While its presence in Algeria was relatively small, the country still contributed approximately 2% of Jumia’s gross merchandise value (GMV) in 2025 prior to the shutdown.<br />
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The company acknowledged that the decision would have a negative short-term impact on financial performance. However, Jumia framed the move as part of a broader geographic recalibration aimed at improving efficiency.<br />
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“In the longer term, these changes to Jumia’s geographic footprint are expected to enhance operational efficiency and resource allocation, enabling the Company to focus on markets with stronger growth trajectories and profitability prospects,” it said in the report.<br />
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Jumia’s exit from Algeria comes amid intensifying competitive pressure across African eCommerce markets, particularly from Chinese platforms such as Temu and Shein. As part of its response, Jumia opened a sourcing office in Yiwu, China — one of the world’s largest wholesale trade hubs — to strengthen direct procurement and improve price competitiveness.<br />
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Temu entered the Nigerian market in 2024 with an aggressive advertising push and ultra-low pricing strategy that quickly drove user sign-ups and transaction volumes. The company has sustained its marketing spend, and by 2025 had expanded its cross-border eCommerce footprint to match Amazon’s market share in the segment.<br />
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Competitive dynamics have been especially pronounced in South Africa. Temu and Shein now jointly account for 37.1% of the country’s eCommerce market for clothing, textiles, footwear, and leather (C...
