JUMIA, AFRICA’S E-COMMERCE GIANT, REPORTS 64% DECREASE IN OPERATING LOSS FOR 2023

Jumia, Africa’s leading e-commerce platform, has released its earnings statement for the full year 2023, revealing a significant 64% decline in its operating loss compared to the previous year, totalling $73 million. However, the company experienced a 20% year-over-year decrease in gross merchandise value (GMV) to $750 million, attributed to currency devaluation across markets.

The currency devaluation also contributed to an 8% decline in revenue for Jumia, amounting to $186 million. Despite these challenges, Jumia remains optimistic about its path to profitability, citing positive results from transformational policies implemented in the previous year.

In efforts to streamline operations, Jumia underwent significant changes, including layoffs and discontinuation of unprofitable ventures like its food delivery service, Jumia Food.

Francis Dufay, Jumia Group’s CEO, Francis Dufay, highlighted the impact of high inflation rates and currency depreciation on customer purchasing power, necessitating the company’s transformation efforts.

Dufay emphasised the company’s leaner and more focused approach, achieved through costsaving measures and strategic realignment. He expressed confidence in Jumia’s ability to return to growth in 2024 while further reducing losses, pointing to recent quarters’ performance as evidence of strategic progress and positioning for future growth. Jumia aims to concentrate its resources on its core physical goods business, anticipating revenue growth and improved margins in the coming year.