• Jumia will cease operations in Algeria in February 2026, a market that accounted for about 2% of its 2025 gross merchandise volume (GMV).
• The company reduced its 2025 pre-tax loss by 38% year-on-year to $60.1 million, while revenue rose 11% to $188.93 million.
• Jumia aims to achieve adjusted EBITDA breakeven and positive cash flow in Q4 2026, and to return to profitability in 2027.

Pan-African e-commerce platform Jumia Technologies announced on Tuesday, Feb. 10 that it will withdraw from the Algerian market and expects to return to profitability from 2027, as it sharpens its focus on its most profitable African markets, including Egypt, Kenya, Morocco and Nigeria.

Jumia stated in its fourth-quarter and full-year results report for the year ended Dec. 31, 2025 that it decided in February 2026 to cease operations in Algeria, a country that represented approximately 2% of its 2025 gross merchandise volume (GMV). The company trades on the New York Stock Exchange.

The company said the exit could temporarily weigh on financial indicators. Jumia expects short-term effects to include costs related to employee layoffs, lease terminations and asset liquidation. However, the company said the withdrawal should improve operational efficiency and capital allocation over the longer term, allowing it to focus on markets with stronger growth and profitability prospects.

Jumia launched a restructuring program in 2022 to restore profitability. The company reduced its workforce, exited the food delivery segment, discontinued non-core services unrelated to its e-commerce business and withdrew from South Africa and Tunisia. The company implemented these measures to streamline operations and improve margins.

Full-year 2025 financial indicators show progress toward that objective. Revenue increased 11% year-on-year to $188.93 million. Pre-tax loss narrowed to $60.1 million from $97.6 million in 2024, marking a 38% year-on-year reduction. The company attributed the improvement primarily to lower financial costs and stronger operational performance.

“Our priority now is to drive usage growth in our core markets, with the objective of reaching adjusted EBITDA breakeven, achieving positive cash flow in the fourth quarter of 2026, and returning to profitability and positive cash flow in 2027,” Chief Executive Officer Francis Dufay said in the report.

Walid Kéfi