Jumia, a prominent eCommerce company, ceased its operations in Algeria in February 2026, a move disclosed in its full-year 2025 financial report. This strategic exit is part of Jumia's ongoing efforts to streamline its operations and concentrate on markets where it perceives clearer paths to profitability. Algeria represented one of Jumia's remaining North African presences, alongside Egypt and Morocco, following a similar withdrawal from Tunisia.

Although Jumia’s footprint in Algeria was relatively small, the country contributed approximately 2% of the company’s gross merchandise value (GMV) in 2025 before the shutdown. While acknowledging a negative short-term impact on its financial performance, Jumia presented this decision as a key component of a broader geographic recalibration designed to enhance efficiency. The company stated in its report that "In the longer term, these changes to Jumia’s geographic footprint are expected to enhance operational efficiency and resource allocation, enabling the Company to focus on markets with stronger growth trajectories and profitability prospects."

Jumia's departure from Algeria is set against a backdrop of intensifying competitive pressures across African eCommerce markets, largely driven by the aggressive entry of Chinese platforms such as Temu and Shein. In response to this heightened competition, Jumia has taken steps like opening a sourcing office in Yiwu, China, one of the world's largest wholesale trade hubs. This initiative aims to strengthen direct procurement and improve Jumia's price competitiveness.

The impact of these new competitors is significant. Temu, for instance, entered the Nigerian market in 2024 with an aggressive advertising strategy and ultra-low pricing, which rapidly boosted user sign-ups and transaction volumes. By 2025, Temu had maintained its marketing spend and expanded its cross-border eCommerce footprint to rival Amazon’s market share in the segment. Competitive dynamics have been particularly acute in South Africa, where Temu and Shein now collectively command 37.1% of the eCommerce market for clothing, textiles, footwear, and leather (CTFL). Notably, Jumia had already exited South Africa in October 2024, citing similar concerns regarding scale, margins, and intense competitive pressures as reasons for its withdrawal.