Africa’s leading e-commerce retailer, Jumia Technologies, is set to grow orders by up to 25% this year while aggressively cutting costs to boost profitability.
Jumia faces increasing competition from Chinese players like Temu, which entered the Nigerian market in December, aiming to carve out a share of the continent’s digital economy.
Despite the challenge, CEO Francis Dufay remains confident in Jumia’s growth, highlighting Africa’s vast market potential and its ability to accommodate multiple competitors.
“They (Temu) are spending a lot of money so they can take a share, but the market is so big it will not hurt our potential to grow,” Dufay told Reuters.
Jumia, which operates in nine countries with a combined population of 600 million people, reached 6 million customers last year, solidifying its foothold in Africa’s most populous nation, Nigeria.
To accelerate profitability, the company has streamlined operations by cutting headcount, exiting everyday grocery and food delivery services, and focusing solely on its core e-commerce business.
Dufay emphasized that Jumia would expand into new cities and underserved rural areas while continuing to optimize logistics and operational expenses.
The company aims to reduce its pre-tax loss by as much as one-third, targeting a financial improvement of up to $70 million this year.
As Jumia fortifies its position in Africa’s fast-evolving digital marketplace, the competition intensifies, but its leadership remains steadfast in its vision for sustained growth.
