Will Jumia Conquer Tanzania and Angola After Its Big Market Exits?

After a period of strategic retreat and intense restructuring, African e-commerce leader Jumia seems to be getting its groove back. The company is now exploring a fresh wave of expansion, with Tanzania and Angola reportedly at the top of its list. This news, shared during its Investor Day presentation on November 13, 2025, signals a potential new chapter for a company that has spent the last couple of years tightening its belt.

A Closer Look at the Retreat from South Africa and Egypt

To understand where Jumia is going, it helps to see where it’s been. The company recently made headlines for pulling out of major markets, including South Africa. According to Francis Dufay, Jumia’s CEO, the exits were a necessary, if difficult, decision. The company cited tough macroeconomic conditions and intense competition that limited growth potential. Those markets, including Tunisia, accounted for a relatively small slice of the business, making up just 3.5% and 2.7% of its total orders.

The move was part of a broader, aggressive cost-cutting strategy aimed at achieving profitability. This period of turbulence wasn’t just about market exits. In 2025, Jumia also saw its largest institutional investor at the time, Baillie Gifford, completely divest its stake, marking the end of a six-year investment. This created uncertainty, but it also paved the way for a new chapter and new backers. The challenging economic environment in markets like South Africa and Egypt made it hard for the e-commerce platform to find a sustainable path to profit.

What’s Different This Time Around

So, why the sudden confidence to expand? A lot has changed. Jumia has become a much leaner and more efficient operation. The company has aggressively cut costs, and its improved performance seems to be fueling its renewed ambition. One of the biggest shifts has been the adoption of AI-driven automation across its customer service, marketing, and tech operations. This has helped streamline processes and has supported a 7% reduction in its workforce since the end of 2024.

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For businesses looking to follow in Jumia’s footsteps by automating workflows, The TechBull recommends exploring platforms like Make.com. It allows companies to connect apps and automate tasks without needing extensive coding knowledge, which can be a game-changer for improving efficiency and cutting operational costs.

Fresh investment has also played a crucial role. Axian Telecom, a pan-African telecommunications provider, acquired an 8% stake in Jumia, becoming its largest shareholder. This move has been seen as a strong vote of confidence. In a statement, Axian Telecom CEO Hassan Jaber praised Jumia’s vision and its strengths in digital retail and logistics. This backing might be giving Jumia the stability and latitude it needs to look at new markets once again.

Untapped Potential in Tanzania and Angola

The choice of Tanzania and Angola is no accident. Jumia is eyeing markets with long-term growth potential. Tanzania, a market Jumia actually left back in 2019 to optimize its portfolio, is looking particularly attractive now. The country has shown strong economic performance, with an average GDP growth of 5.5% over the last decade and a projected 6% expansion in 2025. This stable growth is a key factor behind Jumia’s renewed interest.

The e-commerce outlook is promising, too. Projections show that Tanzania’s e-commerce market revenue could hit $1.69 billion by 2030, while Angola’s is expected to pass $710 million in the same timeframe. Jumia is betting that its refined model can capture a significant piece of that pie.

Roadblocks on the Horizon

Despite the optimism, Jumia isn’t rushing in blindly. The company was clear that any expansion depends on several key criteria being met. According to details from its investor day, these conditions include foreign exchange stability, the availability of strong logistics partners, a robust pipeline of sellers, and overall market readiness.

Each market comes with its own set of challenges. In Angola, while the economy saw its strongest growth in five years in 2024, high inflation continues to squeeze household incomes, which could complicate things for a consumer-facing platform. In Tanzania, infrastructure gaps, like the ones that led to a major internet blackout previously, highlight the operational hurdles that must be cleared for e-commerce to thrive.

Jumia’s insistence on a data-driven approach means it will be closely monitoring these factors. Companies looking to make similar strategic decisions often rely on business analytics tools. For instance, platforms like Databox help businesses pull all their data into one place to track performance and make smarter, metric-based decisions before entering new markets.

The Bigger Picture for Jumia

Will this bet pay off? It’s too early to tell. Jumia itself admits that its nine current markets are still “massively underpenetrated” and hold significant growth opportunities on their own. The company has not provided a timeline for entering Tanzania or Angola, emphasizing that its path to profitability remains the top priority.

However, its refined operational model offers a glimpse of what a future expansion could look like. The company heavily relies on a network of small business owners who manage over 80% of its pick-up stations. This community-based approach cuts down on capital spending and helps speed up deliveries in remote areas, allowing Jumia to expand its reach without massive upfront investment. It’s a leaner, more agile strategy that could be the key to finally conquering new frontiers and achieving the sustainable growth that has long been its goal.