Jumia closes shop in Tanzania amid dwindling fortunes
Online retailer Jumia has exited the Tanzanian market, days after it closed shop in Cameroon over reducing fortunes that have negatively affected its profitability since a Wall Street debut in April.
In a statement, the company said that it was focusing its resources on other markets .
“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. It is important now than ever to put our focus and resources where they can bring the best value and help us thrive,” the company wrote.
With an e-commerce business similar to Amazon’s and a classified portal like Alibaba’s, Jumia sells its own stock and takes a cut of third-party transactions on its website.
The company posted a loss of Sh6 billion in the third quarter of the financial year ending June, according to results announced in November.
Jumia, however, said that its classifieds listing business, Jumia Deals, will continue to function in Tanzania.