Jumia is intensifying its focus on low-cost imports from China while aggressively expanding operations in Nigeria as the company races toward profitability after years of restructuring. CEO Francis Dufay said the company is targeting breakeven by late 2026 and its first full-year profit in 2027, as reported by Business Insider Africa.
Jumia has significantly expanded its sourcing operations in China to improve pricing competitiveness against fast-growing rivals such as Temu and Shein. The company said stronger direct sourcing capabilities and new supplier networks helped international sales surge by more than 80% in recent quarters, reinforcing a strategy focused on affordable, mass-market products.
Nigeria has emerged as the centrepiece of Jumia’s growth strategy due to its large population and rising digital commerce adoption. The company has expanded into more cities and underserved rural areas while investing in logistics infrastructure and payment systems, including its popular cash-on-delivery option. Analysts say Nigeria offers Jumia its “greatest potential in terms of growth and profitability,” according to company statements and investor commentary.
The company has also streamlined operations by exiting underperforming markets and shutting down non-core services such as grocery delivery to reduce losses and preserve cash. Recent financial results showed narrowing losses, stronger revenue growth, and improving cash flow metrics, helping boost investor confidence as Jumia attempts to reposition itself as a leaner and more sustainable African e-commerce business.
