Jumia Technologies AG, a leading pan-African e-commerce platform, has announced its decision to cease operations in Algeria by the first quarter of 2026. The move is part of a significant strategic realignment aimed at accelerating the company’s path to profitability by concentrating resources on its most promising core markets.
This withdrawal follows similar exits from South Africa and Tunisia, underscoring a deliberate shift in Jumia’s corporate strategy from aggressive, expansion-led growth to a more disciplined focus on operational efficiency and sustainable financial returns.
A Strategic Shift From Expansion to Efficiency
Jumia’s decision to exit Algeria reflects its ongoing portfolio optimization. The Algerian market contributed approximately 2% of the company’s total Gross Merchandise Value (GMV) in 2025, making its closure a calculated step to streamline operations.
By winding down its Algerian arm, Jumia intends to reallocate critical capital and senior management attention to key markets with stronger unit economics and higher growth potential, most notably Nigeria. The company anticipates one-time exit costs related to severance, asset liquidation, and lease terminations but is confident that the long-term benefits will lead to a healthier bottom line.
Navigating North Africa’s Market Challenges
While Algeria boasts strong internet penetration, the market presents structural hurdles that have impeded scalable e-commerce growth. Industry analysts point to restrictive trade policies, complex import limitations, and a predominantly cash-based economy as significant barriers for digital commerce platforms.
Jumia’s experience highlights the operational complexities that startups and tech companies must navigate when entering certain North African markets, providing a valuable case study for founders and investors evaluating regional expansion strategies.
Financial Outlook and Path to Profitability
The market exit aligns with Jumia’s disciplined financial roadmap. In its Q4 2025 results, the company reaffirmed its commitment to reaching Adjusted EBITDA breakeven by the fourth quarter of 2026. Looking further ahead, Jumia is targeting full-year profitability and positive cash flow for 2027.
For the 2026 fiscal year, the e-commerce giant projects a robust GMV growth of 27–32% and forecasts a reduced Adjusted EBITDA loss in the range of $25 million to $30 million, adjusted for the perimeter effects of its market exits.
About Jumia
Jumia is a leading e-commerce platform in Africa, often dubbed the “Amazon of Africa.” The company’s mission is to improve the quality of everyday life in Africa by leveraging technology to deliver innovative, convenient, and affordable online services to consumers. Jumia is built around a marketplace, Jumia Logistics for delivery services, and JumiaPay for online payment transactions.
Source: MEA TechWatch
