Africa’s e-commerce giant, Jumia, has continued to shut down its operations across Africa, with the latest being Rwanda.
The company recently sent a message to its Rwandan customers saying that “We regret to inform you that Jumia will suspend our on-demand delivery operations in Rwanda on January 9th, 2020”. The company has been operating in the country over the past six years.
According to Financial Times, Jumia Rwanda will stop taking and processing customers’ orders starting from January 9th, 2020. For its prime subscribers, a separate arrangement will be made regarding their refunds.
“While decisions like these are always difficult, it is more important now than ever to put our focus and resources where they can bring the best value and help us thrive.”
Reason for the shutdown: The e-commerce company has recently been struggling to maintain profitability in its various markets, including Rwanda.
Managing Director of the Rwandan operation, Albert Munyabugingo, confirmed this. According to him, the financial struggle had informed the decision to shut down the Rwandan restaurant delivery service, as well as other operations across Africa.
[READ MORE: Like Gabon, Congo, Jumia shuts down operations in Cameroon)
Recall that Nairametrics reported last month that the company was shutting down its Cameroonian operation. One week afterwards, it shocked many more people by announcing that it had also decided to shut down its Tanzanian operation. Altogether, the company has completely shut down operations in about six African markets including Gabon and Congo.
Will Jumia ever shut down in Nigeria? This is not certain. Much like Egypt, Nigeria is one of Jumia’s biggest markets where it engages in stiff competition with major rival, Konga.
It should, however, be noted that the company recently divested from its Jumia Travel arm in Nigeria, selling Travelstart. Employees affected by this development will reportedly be offered placements in Travelstart, Jumia Food, and Jumia Mall.
I do not feel happy whenever I hear that any company is closing down, more so a multinational. I think of the families and dependants of the workers who would be laid off their jobs; I think about shrinking economies that may no longer be able to provide enough jobs to go round. It affects government’s ability to continue providing public amenities, and I see societies that will fall apart as a result. No company should be allowed to shut down its business. It is bad news for modern day societies. Feels like losing a dear one.