Jumia Exits Algeria in Fresh Push Toward Profitability
Jumia has ceased operations in Algeria as part of a broader strategy to streamline its footprint and focus on markets with clearer paths to profitability, the company disclosed in its full-year 2025 financial report.
The eCommerce firm shut down its Algerian business in February 2026, ending one of its last North African operations. Algeria accounted for about 2% of Jumia’s gross merchandise value (GMV) in 2025, underscoring the limited scale of the market within the group’s overall portfolio.
While acknowledging that the exit will weigh on short-term financial performance, Jumia described the move as a geographic recalibration aimed at improving efficiency and concentrating resources on markets with stronger growth potential and profitability prospects. The company had already exited Tunisia earlier, leaving Egypt and Morocco as its remaining North African markets.
Rising competition reshapes strategy
Jumia’s decision comes amid intensifying competition from Chinese eCommerce giants Temu and Shein, which have expanded aggressively across African markets with ultra-low pricing and heavy marketing spend.
To counter growing price pressure, Jumia has opened a sourcing office in Yiwu, a major global wholesale hub, to deepen direct procurement from manufacturers and improve cost competitiveness.
Temu, which entered Nigeria in 2024, rapidly scaled through aggressive promotions, driving strong user sign-ups and transaction volumes. By 2025, the platform’s cross-border eCommerce reach had expanded to rival that of Amazon in the segment.
Pattern of market exits
Competition has been particularly fierce in South Africa, where Temu and Shein together account for 37.1% of the eCommerce market for clothing, textiles, footwear, and leather goods. Jumia exited South Africa in October 2024, citing challenges around scale, margins, and competitive intensity.
The withdrawal from Algeria follows a series of market exits as Jumia narrows its geographic focus to strengthen its financial position. By concentrating on fewer, higher-performing markets, the company aims to improve operational efficiency and accelerate its journey toward sustainable profitability.
