Online retailer Jumia Technologies, dubbed “the Amazon of Africa,” announced on Thursday it had shut its e-commerce business in Tanzania in a review of its portfolio.
This comes a week after Jumia, which has seen its share price plummet since a Wall Street debut in April, suspended its e-commerce business in Cameroon.
“We have to focus our resources on our other markets. It is more important now than ever to put our focus and resources where they can bring the best value and help us thrive,” the company said in a statement.
With an e-commerce business similar to Amazon’s and a classified portal like Alibaba’s, Jumia sells its own stock and takes a cut of third-party transactions on its website.
But that business model has yet to meet targets as the company missed revenue estimates for the second time in three quarters, according to results announced this month.
Its Tanzanian e-commerce business ceased on Nov. 27, the statement said. Jumia said it would continue to service vendors and customers via its classifieds business.
Jumia shares were trading at $6.31 on Thursday.