Jumia Technologies AG has announced plans to wind down its operations in Algeria by the first quarter of 2026, as part of a broader strategy to prioritise profitability and focus on high-potential markets across Africa. The move follows earlier exits from South Africa and Tunisia and reflects the company’s shift away from expansion-led growth toward operational efficiency and sustainable returns.
Algeria accounted for approximately 2% of Jumia’s total Gross Merchandise Value (GMV) in 2025, making it a relatively small contributor to overall performance. The company said the decision will allow it to streamline operations and redirect capital and management focus toward core markets, particularly Nigeria, where growth prospects and unit economics are stronger.
Industry analysts note that while Algeria offers strong internet penetration, structural challenges such as restrictive trade policies, import limitations, and a cash-heavy economy have created barriers to scalable e-commerce growth. Jumia expects to incur one-time exit costs related to employee severance, lease terminations, and asset liquidation, but believes the long-term impact will improve operational efficiency.
The decision aligns with Jumia’s ongoing profitability drive. In its Q4 2025 results, the company reported continued progress toward financial targets, maintaining plans to reach Adjusted EBITDA breakeven by Q4 2026, with full-year profitability and positive cash flow targeted for 2027. For 2026, Jumia forecasts GMV growth of 27–32% alongside a reduced Adjusted EBITDA loss of between $25 million and $30 million, adjusted for perimeter effects
