Jumia Technologies AG has announced plans to wind down its operations in Algeria by the first quarter of 2026, marking another step in the company’s ongoing strategy to focus on high-potential, profitable markets. This move comes after similar exits from South Africa and Tunisia, signaling a broader recalibration of its geographic presence.
Strategic Realignment Toward Core Markets
The decision reflects Jumia’s shift away from the aggressive “land grab” expansion of its early years. By exiting Algeria, where the company’s operations contributed roughly 2% of total Gross Merchandise Value (GMV) in 2025, Jumia aims to streamline operations, enhance efficiency, and concentrate capital and management attention on markets with clearer paths to profitability, particularly Nigeria.
Analysts highlight that while North African markets such as Algeria offer high internet penetration, structural challenges—including restrictive trade policies, import controls, and a cash-heavy economy—pose obstacles to sustainable growth and strong unit economics.
Financial Impact and Operational Considerations
Jumia expects one-time exit costs related to employee severance, lease terminations, and asset liquidation. Despite these expenses, the company believes the move will improve long-term operational efficiency and allow resources to be redirected to markets where returns are stronger.
The exit aligns with Jumia’s broader profitability drive. In its Q4 2025 results, the company reported steady progress toward financial targets, maintaining its trajectory to achieve 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.
Focusing on Sustainable Growth
By withdrawing from Algeria, Jumia reinforces its commitment to a more disciplined growth model, prioritizing markets that offer scalable opportunities and sustainable returns. The move underscores the company’s transition from rapid, expansion-driven strategies toward profitability-focused operations in core African markets.
