Summary:

Last week, Jumia Technologies announced plans to close its operations in Tunisia in what the African e-commerce firm described as an effort to refocus on its core markets. The firm also plans to exit South Africa, with operations in both countries set to end by late 2024. 

This latest announcement follows a late-2023 decision by Jumia to end its food delivery operations in Tunisia. The most recent announcement will include the closure of the general merchandise delivery operations that remained. 

Tunisia had accounted for less than 3% of Jumia’s total online sales, with Jumia indicating that those numbers had continued to fall through the first half of 2024. 

Outlook: 

The online retail sector in Tunisia remains a challenging one, but with significant potential. The business model is well-developed globally, but the particular regulatory, operational, and infrastructure challenges faced across the African continent, and in Tunisia specifically, continue to challenge businesses operating in the space. 

The acquisition of food delivery app, Kool, earlier this year by Yassir is an indication that the market holds significant potential and is attractive to African firms looking to expand their reach. However, the business models developed elsewhere will require unique evolutions to gain a firm foothold in Tunisia where the specific buying habits and behaviors of this relatively small market have frustrated some technology-driven firms. 

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