Jumia’s China Strategy Fuels 82% Jump in International Sales
Jumia is doubling down on China as a central pillar of its long-term turnaround strategy. The African e-commerce company reported an 82% surge in international sales in the fourth quarter of 2025, driven largely by Chinese suppliers, as it intensifies efforts to achieve profitability by 2027.
After years of sustained losses, the company is reshaping its business model, moving away from premium offerings aimed at Africa’s aspirational middle class and instead targeting price-sensitive consumers who dominate the continent’s market.
A Strategic Pivot Toward Mass-Market Affordability
Jumia’s transformation reflects a clear strategic shift. Rather than focusing on higher-end products, the company is rebuilding its marketplace around affordability and high-volume sales.
The decision is rooted in economic reality. According to the World Bank, roughly 85% of Africa’s population lives on less than $5.50 per day, making cost-conscious consumption the dominant market behaviour.
To meet this demand, Jumia is leveraging Chinese supply chains to deliver lower-priced goods at scale. The company’s strategy is straightforward: cheaper products increase order volumes, improve unit economics, and accelerate the path toward sustainable profitability.
This repositioning signals a broader recognition that Africa’s e-commerce growth will likely be driven by accessibility rather than aspirational spending.
Chinese Supply Chains Become the Growth Engine
The impact of Jumia’s China-focused strategy is already visible in its marketplace structure and sales performance.
By September 2025, the company hosted approximately 24,000 China-based sellers, with around 2.2 million China-sourced products stored in warehouses across Africa. Out of more than 25,000 international merchants on the platform, Chinese partners now represent the majority.
Growth has been consistent across reporting periods. In the third quarter of 2025, products shipped from China increased 55% year-over-year. By the fourth quarter, items sold by international vendors rose 82%, supported by expanded direct sourcing operations.
To strengthen its supplier network, Jumia also opened a new office in Yiwu, China, one of the world’s largest wholesale trading hubs. The move is designed to streamline procurement, improve logistics efficiency, and deepen relationships with manufacturers.
Revenue Growth Meets Ongoing Profitability Challenges
Jumia’s financial performance shows encouraging growth but also highlights the challenges ahead.
For the full year 2025:
Revenue increased 13% to $188.9 million
Gross Merchandise Value (GMV) rose 13.59% to $818.6 million
Operating losses declined only 4.24%
While topline growth and transaction volumes are improving, the modest reduction in losses underscores the fragility of the company’s path to profitability.
We closed 2025 with clear momentum across the platform, delivering strong GMV and revenue growth, improving customer engagement, and continued progress on our path to profitability, said Francis Dufay, Jumia Group Chief Executive Officer, in the company’s full-year results statement.
Strong Customer Engagement and Market Expansion
Customer activity on the platform continues to accelerate. In 2025, total orders grew 32% year-over-year, while quarterly active customers purchasing physical goods increased by 26% in the fourth quarter.
Nigeria remains a critical growth market for the company. The country recorded a 33% increase in orders and a 50% rise in GMV compared to the previous year, reinforcing its position as one of Jumia’s most important markets.
The company attributes this growth to improved product availability, competitive pricing, and enhanced logistics reliability factors central to its mass-market strategy.
A Leaner Geographic Footprint
Jumia’s push toward profitability is also reshaping its geographic presence. The company exited Algeria in February 2026, following earlier withdrawals from South Africa and Tunisia in 2024.
These exits reflect a broader focus on operational efficiency and cost control. Jumia now operates in eight countries, concentrating resources on markets where it sees stronger growth potential and clearer profitability pathways.
Scaling Efficiency and Market Usage in 2026
Looking ahead, Jumia plans to focus on increasing platform usage within existing markets rather than aggressive geographic expansion. The company aims to deepen customer engagement by improving product availability, affordability, and delivery reliability.
According to Dufay, macroeconomic conditions may also support growth. A more stable economic environment and stronger local currencies are expected to benefit both consumers and merchants across Jumia’s markets.
We remain focused on unlocking operating leverage, optimising our cost structure, and refining our market footprint, he said.
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The Road to Profitability by 2027
Jumia expects to achieve break-even performance and positive cash flow by the fourth quarter of 2026, with full-year profitability targeted for 2027. Achieving this goal will largely depend on how effectively the company converts its China-driven supply advantage into sustained order growth and improved margins.
The strategy reflects a broader lesson in emerging-market e-commerce: scale alone is not enough. Success increasingly depends on affordability, operational efficiency, and alignment with local purchasing power.
If Jumia’s bet on Chinese supply chains continues to deliver strong consumer demand across Africa, the company may finally transition from years of financial struggle to sustainable profitability, marking a turning point in its long-running transformation.
