Businesses Continues to Close Down and Exit South African Market

Jumia Technologies, the e-commerce company focused on Africa and known for its online retailer Zando, has announced plans to exit its South African operations by the year's end in order to concentrate on other markets.

In a statement to Reuters, CEO Francis Dufay mentioned that the company is "aggressively cutting costs" to strive for profitability, which entails reducing its workforce, discontinuing everyday grocery items and food delivery services, and scaling back delivery operations unrelated to its core e-commerce activities.

Founded in 2012, Zando.co.za has become one of the leading online fashion platforms in South Africa. However, Dufay pointed out that the highly competitive landscape in South Africa has made it challenging to operate there.

The CEO clarified that the company does not intend to sell this division and that Zando will conduct clearance sales prior to its closure.

According to him, Zando South Africa and Zando Tunisia, another site set to shut down, collectively represented only 2.7% of total orders and 3% of Gross Merchandise Value in the six months ending June 30.

This decision adds to a trend of businesses in South Africa shutting down amid reported operational struggles. For instance, in September, the local online retailer Snatcher commenced voluntary liquidation.