Jumia has announced plans to wind up its operations in Rwanda.
In a statement, the retailer stated that they had to consolidate their resources to areas and markets that are profitable for their business.
“We have made the difficult decision to suspend our on-demand services in Rwanda effective December 9, 2019,”
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According to the report on New Times, Albert Munyabugingo, the company’s Managing Director for Rwanda, Jumia wants to refocus its business.
This happens barely a month after the e-commerce operator made a similar move in Tanzania and Cameroon.
Jumia said they needed to reduce their running costs to be more effective as an organization.
It has been selling their own stock and taking commissions off third party transactions done on their website.
This, however, does not seem to work as the company did not meet the revenue estimates it had set for three quarters in a row by December.
Uneven markets in the content are not making operations any easier for them as they are shutting down their operations in smaller markets, the latest being in Africa.
Their shares as of Monday were trading at $5.76 (Ksh. 584) a 1.5% drop in the share price.
