In a blow to Tunisia’s fledgling digital economy, African e-commerce giant Jumia is leaving the country at the end of 2024, Reuters reported Oct. 16. The company, founded in Lagos in 2012, launched operations in Tunisia a decade ago.
Jumia also simultaneously announced its departure from South Africa, with CEO Francis Dufay framing both decisions as enabling the company to “refocus” resources on markets where it sees more promising trends in terms of scale and profitability. Tunisia and South Africa accounted for only 2.7% of Jumia's total orders for the first half of 2024. Dufay further said that Tunisia’s “trajectory” does not align with the strategy of the group, citing macroeconomics, the competitive environment and low medium-term potential for growth and profitability.
With Jumia's move, Tunisian consumers will lose access to the so-called Amazon of Africa, further limiting options in a market where the real Amazon does not operate despite its regional presence via the acquisition of Dubai’s Souq.com in 2017. Other major e-commerce brands, like Saudi-backed Noon, are also absent in Tunisia.
That these large players are willing to neglect a market of 12 million consumers underlines the larger challenges facing Tunisia, which post–Arab Spring had been singled out as a strong candidate for e-commerce growth thanks to enabling policies and above average online connectivity. According to World Bank data, as of 2022, 74% of Tunisia’s population used the internet, compared to 64% globally.
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