In just a few weeks, the African e-commerce "unicorn" announced the successive closures of its subsidiaries in Cameroon, Tanzania, and now Rwanda. The group announced that it would be ending its Jumia Food delivery operations after six years of activity in the country.
This latest announcement represents the third closure in just three months…
However, 2019 marked a turning point for Jumia, as the startup successfully listed on the New York Stock Exchange in April. This crucial move enabled the company to raise nearly $200 million to accelerate its development on the continent.
Nevertheless, fueled by funds, Jumia is still in the investment phase and suffers losses every year, demonstrating that it is struggling to find a sustainable business model. According to executives, Jumia was forced to withdraw from the Rwandan market due to a lack of profitability.
These significant events raise questions about the future of e-commerce in French-speaking Africa…
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