Jumia’s  Exit from Cameroon Market Sparks Fear in Nigeria 

The news of Jumia’s  exit from Cameroon e- commerce space has continued to stir up fear of job losses among Nigerians on the company’s payroll.

This is as analysts have  expressed  worries that Nigeria, which is the company’s biggest market might be the next hit, following its spate of  business closure in recent times.

Earlier, the company was said to have closed business in Rwanda,  Gabon, Congo Republic and most recently,  Cameroon.

By this development, experts  said it is a bad omen and an indicator that was already rubbing off negatively on company’s global image.

But Jumia in a swift reaction defended its decision in Cameroon, hinging it on business- market incompatibility.

According to the company in a statement,

“Our e-commerce activities are  not suitable for Cameroon. We came to the conclusion that our transactional portal as it is run today is not suitable to the current context in Cameroon”.

In the midst of the heat, the company  said  that it would continue to support buyers and vendors in Cameroon using its classified portal Jumia Deals.

But market  enthusiasts have expressed concerns that stakeholders of the company in Nigeria , including investors, merchants, staff, creditors and  suppliers, may have to brace up for the unexpected given Jumia’s trajectories in recent times.

Jumia Technologies AG is a German-based e-commerce outfit. It was founded in 2012 in Berlin, Germany, and shareholders include the Berlin-based incubator and venture-capital firm Rocket Internet SE. Other early investors include French insurer Axa AXAHY, +0.04% and French telecoms company Orange ORA, +1.86%.

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