Jumia ceases operation in Algeria

E-commerce company Jumia has ceased operation in Algeria, marking a pivotal step in the company’s move toward profitability and direct focus on high-growth markets.

The disclosure was made in the company’s fourth quarter and full-year 2025 results released on Tuesday, February 10, 2025.

The decision is considered a move to streamline operations and concentrate its resources where revenues and Gross Merchandise Value (GMV) are strongest, especially in Nigeria. The move follows similar exits from South Africa and Tunisia in 2024.

According to the disclosure, Jumia’s decision to exit Algeria in February 2026 comes amid discouraging performance, which the company sees as a waste of resources. For instance, the full-year report revealed that Algeria accounted for approximately 2% of GMV, indicating a relatively small contribution to the company’s overall earnings.

“As part of ongoing operational optimisation, we will exit Algeria in the first quarter of 2026 and expect to incur related one-time costs,” the company said, acknowledging that ceasing operations in Algeria may temporarily negatively impact Jumia’s financial metrics.

Experts explained that while North African markets, such as Algeria, have a strong internet penetration, challenges like rigid trade policies, import controls, and a cash-heavy economy make sustained growth difficult. 

Consequently, Jumia’s workforce will witness further reduction. “Short-term effects will include employee termination costs, lease termination costs, and asset liquidation,” it added. 

In its full-year 2025 report, the company revealed how it continues to streamline its workforce. Total headcount has declined by 7% since December 31, 2024, with about 2,010 employees on payroll as of December 31, 2025.

Also Read: AXIAN Telecom acquires 8% stake in Jumia.

What Jumia expects with the Algerian exit

On a positive note, Jumia stated that the exit from Algeria is a geographical restructuring expected to yield positive results in the long run. 

It noted that the decision will enhance operational efficiency and resource allocation, which enables the company to focus on markets with stronger growth trajectories and profitability prospects.

IM: NorthWise Project

In its 2026 forecast, Jumia was confident of reaching breakeven on an adjusted EBITDA basis in the fourth quarter of 2026. The company also aimed to reach profitability by the same period in 2027. 

Reinstating its earnings forecast, as it relates to the exit from Algeria, Jumia said higher cash outflows are expected in the first quarter “reflecting typical seasonality, and the timing of annual contract renewals for certain of our technology and insurance agreements.” 

With its exit from Algeria, Jumia is reinforcing its shift away from the aggressive expansion approach in its early years to focusing on sustainable growth and profitability in high-potential markets.

Jumia reported a 13% year-on-year (YoY) surge in revenue to $188.9 million in 2025. The performance was attributed to a strong Gross Merchandise Volume (GMV) and an increase in orders for physical goods.

In 2025, its gross profit increased by 2% to $101.8 million. Similarly, it totalled a Gross Merchandise Volume (GMV) of $818.6 million, compared to its $720.6 million total in 2024 (up 14% YoY). These represent a growth momentum throughout the year. 

Similarly, its operating loss was down by 4% to $63.2 million, compared to a loss of $66.0 million in 2024. Also, adjusted EBITDA loss was $50.5 million, compared to $51.3 million in 2024

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