African e-commerce is witnessing a major reshuffle as Jumia Technologies, the continent’s leading platform, announces it will exit Algeria by the first quarter of 2026. The move reflects a strategic shift toward profitability, as competition from Chinese e-commerce giants Temu and Shein intensifies across Africa.
Jumia has already withdrawn from South Africa and Tunisia, narrowing its operations to eight high-potential markets. Algeria, which accounted for only 2% of Jumia’s gross merchandise value (GMV) in 2025, faced challenges such as restrictive trade policies, import controls, and a predominantly cash-based economy, limiting long-term growth.
Despite these exits, Jumia achieved strong results in its core markets. Nigeria, the company’s largest market, recorded 50% GMV growth in the fourth quarter of 2025, with 33% more orders than the previous year. Notably, 61% of these orders came from secondary cities, highlighting the strength of Jumia’s logistics network. The company also narrowed its full-year loss from $97.6 million in 2024 to $60.1 million in 2025, targeting adjusted EBITDA breakeven in late 2026 and its first full-year profit in 2027.
Meanwhile, Temu and Shein are aggressively expanding, reshaping consumer expectations and pricing in African markets. According to Business Insider Africa, in South Africa, they now capture roughly 37% of the online clothing and fashion sector, with Shein holding about 28% of women’s fashion e-commerce.
To compete, Jumia has strengthened direct sourcing from China, opening an office in Yiwu, and continues leveraging its logistics, cash-on-delivery, and pickup networks in secondary cities. With a leaner footprint and focus on sustainable growth, Jumia aims to remain competitive amid rapid Chinese expansion.
