Jumia Ceases Operations in Rwanda, Closes Jumia Food

Online retail giant Jumia has closed down its operation in Rwanda – shutting down its food delivery business.

“We regret to inform you that Jumia will suspend our on-demand delivery operations in Rwanda on January 9th 2020,” Jumia sent a message to its Rwandan customers on Monday.

In 2017, Jumia closed its e-commerce business leaving behind Jumia Foods as its only business in operation in the East African country.

The closure forms part of the austerity measures taken by the online retailer that has been expanding rapidly and having an upward growth trajectory in the world. Jumia has taken over world renowned online business platforms such as Alibaba, Aspira, Wish, Alladin and Kilimall to make its presence in Africa felt.

This year has been bad for the online retail company for so far it has closed branches in Cameroon and Tanzania. In a statement, the company said that it was part of the measures undertaken to prevent loss making of company. This has in turn affected many a people who have been making a killing on the online space. This is because it employs thousands of people as workers in the firm who aid in the daily operations of the company.

The latest move by the online retail giant to close their market in Rwanda has hit the country by a storm. Jumia closed its operations in Rwanda due to failure for the company to raise profits. This move as well has affected suppliers who heavily depended on the platform to market their businesses and sell their products to the many masses within  Rwanda.

By Jumia closing down its operations in countries in Africa it risks losing its marketability thus being overtaken by world giants like Alibaba and Amazon, which are seen to have an upward growth trajectory over time. Suppliers, manufacturers and staff are the ones majorly affected by the move in Rwanda not forgetting the buyers who heavily depended on the platform.