Africa’s leading e-commerce platform Jumia Technologies is charting a course toward profitability while defending its market position against Chinese competitors, executives said Wednesday.
The Lagos-based retailer expects to achieve breakeven in the fourth quarter of 2026 and deliver its first annual profit in 2027, a significant milestone after years of restructuring.
Narrowing losses signal turnaround
Jumia narrowed its full-year loss to $60.1 million in 2025 from $97.6 million the previous year, putting the company on track to reach breakeven on adjusted core earnings and positive cash flow by year’s end, CEO Francis Dufay said.
The improved performance comes after the company streamlined operations across its eight remaining markets following its exit from Algeria this month. The platform cut non-essential services, dropping everyday grocery items and food delivery while reducing headcount.
“The growth rate of the company has been accelerating. We are really scaling,” Dufay said. “We grew 35% in dollars year-on-year in the last quarter.”
Economic stability fuels recovery
The company’s turnaround has benefited from improved macroeconomic conditions across key African markets, particularly Nigeria, where Jumia generates a substantial portion of revenue. Inflation has eased from record highs, and the naira has remained stable since early 2025.
The combination of disciplined cost management and expanding revenue has accelerated the path to profitability.
Chinese rivals meet local resistance
Despite concerns that Chinese e-commerce giants Temu and Shein would dominate African markets, Jumia has proven competitive through strategic advantages tailored to local consumer preferences.
“People thought they would eat our lunch, but it’s not a home run that everyone expected,” Dufay said. “We can actually fight against those platforms in our markets.”
The company strengthened its competitive position by expanding its sourcing team in China, enabling more competitive pricing. This allowed Jumia to match international competitors while leveraging its established local presence.
Jumia’s payment-on-delivery service remains a crucial differentiator in markets where digital payment infrastructure is still developing. The service addresses a fundamental barrier to e-commerce adoption across Africa, where many consumers prefer to inspect goods before payment.
The enhanced logistics network has proven essential in competing against global players unfamiliar with Africa’s complex delivery challenges, including infrastructure limitations and diverse regulatory environments.
As Jumia approaches profitability targets, the company demonstrates that international e-commerce expansion in emerging markets requires deep understanding of local consumer behavior and logistical realities.
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