Jumia to Exit Algerian Market as Part of Strategic Profitability Push
By withdrawing from Algeria, Jumia reinforces its shift away from the aggressive “land grab” expansion approach of its early years, emphasizing sustainable growth and profitability in core, high-potential markets.
Jumia Technologies AG has announced that it will wind down its operations in Algeria by the first quarter of 2026, marking another step in the company’s strategy to focus on profitable and high-growth markets. The decision follows similar exits from South Africa and Tunisia, reflecting a broader effort to streamline operations and concentrate resources where returns are strongest, particularly in Nigeria.
The company expects to incur one-time exit costs, including employee severance, lease terminations, and asset liquidation charges. Prior to the closure, Algeria accounted for roughly 2% of Jumia’s total Gross Merchandise Value (GMV) in 2025, indicating a relatively small contribution to the company’s overall business.
Jumia described the move as a “geographic recalibration” designed to enhance operational efficiency and direct management attention and capital to markets with clearer paths to profitability. Analysts note that while North African markets like Algeria have strong internet penetration, challenges such as restrictive trade policies, import controls, and a cash-heavy economy make sustained growth and unit economics difficult.
This decision aligns with Jumia’s ongoing profitability drive. The company reported progress toward its financial targets in its Q4 2025 results, maintaining its trajectory to reach Adjusted EBITDA breakeven by Q4 2026 and aiming for full-year profitability and positive cash flow in 2027. For 2026, Jumia anticipates GMV growth of 27–32% and a reduced Adjusted EBITDA loss between $25 million and $30 million, adjusted for perimeter effects.
By withdrawing from Algeria, Jumia reinforces its shift away from the aggressive “land grab” expansion approach of its early years, emphasizing sustainable growth and profitability in core, high-potential markets.
