Just a few weeks after leaving the Cameroon market, Jumia on Wednesday November 27, 2019 left Tanzania after operating in the country for 5 years.
According to Techawk, a statement from Jumia revealed that the company closed its Tanzania business to enable it focus on operations in other countries, tagging the decision as a difficult one.
The statement reads, “Based on our review of the path to success, we have made a difficult decision to cease our operations in Tanzania as of 27th Nov 2019.
“While Tanzania has strong potential and we’re proud of the growth we’ve collectively seen stemming from Jumia’s adoption, we have to focus our resources on our other markets. This decision isn’t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.
“Jumia will continue to support buyers and vendors through our classifieds portal, previously called Jumia Deals, which will now be the main portal jumia.tz.
“Thousands of buyers and vendors transact through this portal and we believe it will continue to become increasingly relevant in the future.”
Jumia’s shares which was traded as high as $49.77 is recorded to have fallen to about $11 compared to the IPO price of $14.50 reducing the company’s market value from $1.5b in 2016 to $867m.