Chinese E-commerce Giants Temu and Shein Tighten Grip on Africa as Jumia Exits Another Market
In a significant shift in the African e-commerce landscape, Chinese companies Temu and Shein are rapidly expanding their presence, while African e-commerce firm Jumia Technologies is winding down operations in Algeria by the first quarter of 2026. This strategic exit is part of Jumia’s broader move towards profitability amidst increasing competition from these Chinese platforms.
Jumia’s Strategic Exit from Algeria
Jumia Technologies has announced that it will cease operations in Algeria, marking another step in its strategy to focus on more profitable markets. The company has been making strategic exits from several regions, now operating in only eight key markets where it sees potential for robust growth. In 2025, Jumia reported significant revenue and order growth, particularly in Nigeria, which highlights its capacity for sustainable expansion despite the challenging competitive landscape.
Impact of Chinese Competition
The competition from Temu and Shein is reshaping the e-commerce dynamics across Africa. Jumia’s decision to exit Algeria comes after previous withdrawals from South Africa and Tunisia. Algeria accounted for only about 2% of Jumia’s gross merchandise value (GMV) in 2025, which limited its strategic importance. Analysts have pointed out that restrictive trade policies, import controls, and a cash-heavy economy have hindered sustainable growth in the region.
Focus on Core Markets
Jumia is now concentrating its resources on markets with clearer paths to profitability. Chief Executive Francis Dufay stated that the company closed 2025 with “clear momentum,” citing stronger revenue growth and improving customer engagement. Notably, Nigeria, Jumia’s largest market, delivered a remarkable 50% GMV growth in the fourth quarter, with orders rising by 33%. This growth is particularly significant as 61% of orders originated from secondary cities, showcasing the effectiveness of Jumia’s logistics network in areas where global competitors are less established.
Financial Performance and Future Prospects
In 2025, Jumia managed to narrow its full-year loss to $60.1 million, down from $97.6 million in 2024. The company anticipates breaking even on an adjusted EBITDA basis in the fourth quarter of 2026, with a target for its first full-year profit in 2027. To enhance its competitive edge, Jumia has expanded its sourcing operations in China, including the opening of an office in Yiwu, one of the world’s largest wholesale trade hubs. This move aims to procure goods directly from manufacturers, thereby reducing costs.
Chinese Platforms Reshaping the Market
Temu and Shein are rapidly capturing market share in Africa, particularly in South Africa, which is regarded as the continent’s most developed e-commerce market. Reports indicate that Temu’s parent company generated $34.9 billion in revenue globally and has invested heavily in advertising to bolster its international presence. Together, Temu and Shein have captured a combined 3.6% share of South Africa’s clothing, textile, footwear, and leather market, generating approximately 7.3 billion rand (about $405 million) in sales.
Consumer Trends and Market Dynamics
Survey data reveals that roughly one in three South Africans has made a purchase on Temu, indicating the platform’s rapid consumer uptake. Projections suggest that the combined market share of Temu and Shein could rise significantly, potentially approaching 63% of e-commerce retail if current growth trajectories continue. This trend mirrors early disruption patterns seen in global retail markets, where fast-scaling entrants quickly reshape competitive dynamics.
Jumia’s Path Forward
Since taking over in late 2022, Dufay has emphasized cost discipline after Jumia’s stock plummeted by over 95% from its peak in 2021. The company has exited underperforming markets, dropped everyday grocery and food delivery services, and reduced its workforce to lower operating costs. In the fourth quarter of 2025, Jumia reported a 34% year-on-year revenue increase, reflecting its commitment to operational efficiency.
Conclusion
As Chinese platforms accelerate their expansion into Africa, Jumia is betting that a leaner operational footprint, direct access to global supply chains, and infrastructure tailored to local realities will position it for sustained profitability. The evolving competitive landscape presents both challenges and opportunities for African e-commerce players as they navigate the complexities of a market increasingly influenced by international giants.
Frequently Asked Questions
Jumia’s exit from Algeria is part of its strategy to focus on more profitable markets, as the region accounted for only about 2% of its gross merchandise value in 2025. Increasing competition from Chinese platforms like Temu and Shein, along with restrictive trade policies, played a significant role in this decision.
Temu and Shein are rapidly expanding in Africa, reshaping pricing dynamics and consumer expectations. Their aggressive growth strategies have allowed them to capture significant market share, particularly in South Africa, influencing the competitive landscape and challenging local players like Jumia.
Jumia is focusing on operational efficiency by narrowing its market footprint, enhancing its logistics network, and expanding sourcing operations in China. The company aims to improve profitability by targeting markets with clearer growth potential and reducing costs through direct procurement from manufacturers.
Note: This article reflects the current state of the African e-commerce market as of February 2026 and is subject to change as new developments occur.
