Is There a Future for the “Amazon of Africa”?

Jumia, often hailed as the “Amazon of Africa,” is navigating its most critical phase yet. Founded in Nigeria in 2012, the company expanded rapidly across 14 countries and multiple verticals including food delivery, travel services, and online payments. However, the ambitious growth came with challenges—mounting losses, a sharp decline in share value, and logistical hurdles tied to Africa’s fragmented infrastructure and varying consumer behaviors.

Since late 2022, CEO Francis Dufay has led a bold restructuring to turn the tide. Jumia has scaled back to nine core countries, cut underperforming verticals, and prioritized cost efficiency. The company relocated its leadership from Dubai back to the continent and reduced spending on advertising while improving operational efficiency.

These moves are starting to show results. In Q2 2025, Jumia reported a 25% increase in revenue to $45.6 million, while its gross merchandise value grew 6% to $180.2 million. The projected pre-tax loss for 2025 has narrowed significantly to $45–50 million, compared with $206 million in 2022. This suggests that Jumia’s path toward profitability, targeted for 2027, may be achievable.

Still, the road ahead is not without obstacles. International competitors such as Temu and Shein are pushing into African markets with steep discounts and faster delivery times. To succeed, Jumia must strengthen its logistics, expand its payments ecosystem, and maintain consumer trust while continuing to scale efficiently.

On a positive note, investor confidence appears to be returning. Pan-African telecom group Axian recently joined as a strategic investor, with its CEO now serving on Jumia’s board. This partnership underscores the belief that Jumia still has an important role to play in shaping Africa’s digital economy.

Looking ahead, Jumia’s leaner strategy, improved efficiency, and renewed investor support could help it redefine its place in African e-commerce. If successful, the so-called “Amazon of Africa” may not only secure its own future but also influence the growth of digital trade across the continent.

Source: Financial Times