Once hailed as Africa’s first tech unicorn, Jumia is undergoing a major transformation to regain investor confidence, sharpen its market focus, and deliver sustainable profitability. Since its IPO on the New York Stock Exchange in 2019, the e-commerce company has seen its market value plummet from over $1 billion to about $400 million. But under the leadership of CEO Francis Dufay, Jumia is determined to rewrite its story.
In an interview with the Financial Times, Dufay acknowledged the company’s rocky past and outlined a clear path forward. “My focus is simple — we must deliver the numbers,” he said. “Between now and 2027, that will matter more than any speeches. Execution will rebuild our credibility.”
Dufay, who stepped in as chief executive in late 2022, has wasted no time restructuring the company. From job cuts to scaling back from 14 countries to nine, Jumia has trimmed its operations to become leaner and more focused. The aim: break even by 2027.
That credibility has taken a hit in recent years, with investors losing faith due to unmet expectations. The recent exit of Baillie Gifford, formerly Jumia’s largest institutional investor, only heightened the urgency to show progress. To turn the tide, Dufay is meeting investors through roadshows and building new strategic partnerships.
One of Jumia’s biggest challenges — and opportunities — lies in the growing presence of Chinese e-commerce powerhouses Temu and Shein, whose aggressive pricing and logistics have made inroads across Africa. Rather than confront them head-on, Jumia is adapting by forming alliances. A dedicated 70-person team based in Shenzhen, China is now working to onboard Chinese sellers onto the Jumia platform.
This strategy is already bearing fruit: Chinese merchants now contribute roughly a third of Jumia’s total sales volume, offering affordable goods ranging from fashion to electronics. Dufay believes Jumia’s strength lies in being more attuned to the African market, offering localized products and services that global platforms struggle to deliver.
“We believe we can compete,” he told Financial Times. “We offer categories Temu and Shein can’t, and our network of international sellers is a key asset.”
Beyond external competition, Jumia is also eyeing internal growth, especially in Nigeria — a market Dufay calls the most promising in terms of scale and profitability. While Jumia’s presence in Nigeria is still modest, the company plans to reach more underserved communities outside major urban centers. Other countries such as Kenya, Uganda, and Egypt are also part of its growth focus.
Still, challenges persist. Low internet penetration, underdeveloped payment systems, and logistical inefficiencies continue to hamper e-commerce expansion across Africa. Moreover, macroeconomic headwinds like inflation and currency instability have further complicated operations.
Yet, Dufay remains optimistic. He sees Jumia not just as a retailer, but as a crucial link between global supply chains and Africa’s underserved consumers. As Asian manufacturers look for new markets amid shifting geopolitical tides, Jumia could become the platform of choice for reaching African buyers.
In reshaping its model — slimming down, localizing offerings, and building supplier networks — Jumia is betting on resilience and market understanding to drive its next chapter. The road to profitability may be long, but the groundwork for a new era appears firmly in motion.
