African e-commerce platform turns to China for cheaper goods

Photo credit: Jumia

Jumia, the African e-commerce group once dubbed the ‘Amazon of Africa’, has signed up more Chinese suppliers to its platform to offer cheaper goods to cost-conscious consumers as it seeks to rein in years of losses.

The New York-listed group has a presence in nine African countries, with Nigeria and Egypt among its biggest markets. A typical Jumia shopper earns US$200–US$500 a month, leaving just US$20–US$30 in discretionary income. That translates into selling US$5–US$10 shoes and televisions priced at US$80, rather than US$1,000 items. Jumia argues that in much of Africa, there is plenty of consumer demand but too few products available at the right price.

To cater to these shoppers, Jumia has reorganised its sourcing operations and recruited more low-cost suppliers from China, particularly from the manufacturing hub of Shenzhen. The company has also simplified processes for Chinese merchants to sell through its platform, presenting itself as a gateway to African consumers.

In an interview with Rest of World, Jumia CEO Francis Dufay said higher US tariffs on Chinese goods were opening the door for Jumia to secure more affordable supplies. He observed that many Chinese manufacturers, previously focused on the American market, were beginning to rebalance exports and give greater attention to regions such as Africa. According to him, it has already become easier to obtain inventory from China.

Founded in Nigeria in 2012 with backing from Germany’s Rocket Internet, Jumia quickly expanded its e-commerce marketplace to more than a dozen African countries. To support this growth, it built its own logistics and payments arms – Jumia Logistics and JumiaPay – and added side businesses such as food delivery, hotel bookings and classified ads.

The company listed on the New York Stock Exchange in 2019 but has yet to turn a profit. Jumia posted a U$97.6m loss in the 2024 financial year. Like other e-commerce platforms in Africa, it has had to contend with poor transport infrastructure, limited digital payment options and consumer distrust of online retail. Some of its difficulties, however, were self-inflicted: for years it prioritised topline growth to satisfy venture capital investors while carrying heavy overheads such as overseas offices, highly paid executives and unsustainable marketing expenses.

Under the leadership of Dufay, appointed in 2022, Jumia launched a restructuring drive to prioritise profitability over expansion. The group cut staff costs, pulled out of unprofitable markets such as South Africa and Tunisia, and closed underperforming units such as food delivery.

 

References

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'Jumia is betting its future on managing cash flow better', Rest of World, 28 March 2023

'Exclusive: Inside Francis Dufay’s urgent plans to rescue Jumia, the struggling Amazon of Africa', TechCabal, 21 September 2023

'The rise and fall of Jumia in Africa', Juliet Ajaab, 10 February 2024

‘Jumia reports fourth quarter 2024 results’, Jumia Technologies AG, 20 February 2025

'Jumia aggressive cost-cutting in 2024 narrows losses to $65 million', TechCabal, 20 February 2025

'The leading e-commerce platform in Africa', Jumia, Accessed on 23 September 2025

'How Africa’s e-commerce giant is fighting off Shein and Temu', Rest of World, 25 August 2025

'Jumia Company Presentation', Jumia Technologies AG, August 2025