Why Jumia Is Also Struggling In North Africa

For years, Jumia Technologies AG positioned itself as the "Amazon of Africa." Founded in Nigeria in 2012 by Sacha Poignonnec, Jeremy Hodara, Tunde Kehinde, and Rafael Kofi Afaedor, it aimed to bring order to the continent’s fragmented retail landscape by building a digital marketplace that could connect consumers to goods on a large scale.

However, despite being the first Africa-focused technology unicorn startup to list on the New York Stock Exchange (NYSE: JMIA) and its rapid expansion to 14 markets across Africa, Jumia has consistently struggled to translate its pan-African vision into sustained profitability.

While many reports and analyses have focused on the company’s structural challenges in Sub-Saharan Africa (SSA), the truth is that Jumia has encountered equally profound, though distinctly different, headwinds in the more digitally mature markets of North Africa (NA), namely Egypt, Morocco, Tunisia, and Algeria.

The Continental Struggle

The thing is, Jumia’s difficulties were never confined to one region. Across Sub-Saharan Africa (with West Africa being its major market), it ran headfirst into structural barriers that made its e-commerce ambitions far harder than investors initially assumed.

In reality, the e-commerce giant has experienced more phases than its 13 years of life might suggest. It was born with the ambition of becoming a brand that could tap into an increasingly fertile market—thanks to a demographic boom and a strong shift toward digitalization.

At the time, it was a valid proposition. Africa’s population was booming, smartphone adoption was rising, and a growing middle class was emerging.

The ecommerse giant soon expanded beyond online retail, building a full digital ecosystem that included logistics through Jumia Logistics, digital payments via JumiaPay, travel booking with Jumia Travel, and food delivery under Jumia Food.

By 2016, Jumia had earned the title of Africa’s first “unicorn,” valued at over USD 1 B.

Three years later, it hit a high point with its IPO on the New York Stock Exchange, which was celebrated as a landmark moment for African tech. The stock debuted at USD 14.50 a share, shot up to USD 49.77 within days, and briefly valued the company at almost USD 3.8 B.

At its peak, Jumia boasted over 100,000 sellers, 1.1 billion monthly visits, and 80% of African online shoppers.

But Jumia's worth has since fallen drastically, with its market capitalization plummeting from an initial peak of around USD 3 B in 2019 to approximately USD 1.39 B as of September 2025, according to Forbes and Companies Market Cap. 

From Unicorn to Reality Check