Jumia, Africa’s leading e-commerce platform, is on track to cover its operating expenses by 2027, marking a significant milestone for the company. Although this does not guarantee net profitability due to potential tax implications, it demonstrates a shift towards financial sustainability for a company that has previously reported losses.
In a recent filing with the SEC, Jumia CEO Dufay announced a revised financial outlook for the company. Despite projecting a pre-tax loss of $50–55 million for 2025 and a further reduction to $25–$30 million in 2026, Jumia remains optimistic about achieving profitability by 2027. The company faced challenges in the first quarter of 2025, with a 26% year-on-year decline in revenue to $36.3 million, primarily attributed to a downturn in corporate sales in Egypt and a decrease in total platform sales by 11%.
However, Jumia has seen positive growth in consumer orders, with a 21% increase—the highest in two years. This growth is fueled by the company’s strategic shift away from unprofitable markets and expansion into rural areas, where consumer sales have risen by 10%. Despite a decrease in high-margin corporate deals affecting gross profit, Jumia has managed to halve its pre-tax loss by reducing currency pressures in Nigeria and Egypt, keeping delivery costs stable, and implementing a more efficient marketing strategy that reduced advertising expenses by 17%.
Furthermore, Jumia has expanded its product offerings by increasing products from international sellers by 61%, enhancing its catalogue. Additionally, the company has seen a 45% increase in new customers from late 2024 returning, compared to 40% previously. JumiaPay, the company’s payment platform, continues to play a significant role, covering 28% of sales in 2025 compared to 25% in the previous year.
Looking ahead, Dufay expects physical goods orders to grow by 20% to 25%, with GMV forecasted to be between $795 million and $830 million in 2025—a year-over-year increase of 10% to 15%, excluding foreign exchange impact. Despite these positive operational highlights and raised guidance, Jumia’s share price has experienced a decline, currently priced at $2.40, reflecting a decrease of approximately 4.76% from the previous close of $2.52. Investors may be monitoring the company’s long-term prospects amidst economic uncertainties in Africa.
Overall, Jumia’s progress towards financial sustainability and profitability showcases the company’s resilience and strategic initiatives in navigating the e-commerce landscape in Africa. With a focus on growth, operational efficiency, and expanding consumer reach, Jumia is positioning itself for long-term success in the region’s rapidly evolving market.
