Popular E-commerce giant, Jumia Technologies on Monday, November 18 shut down its operations in Cameroon without notice just as it did in Gabon and Congo Republic; sparking fears and anxiety on the state of its health in other African countries.
The company has been accused by its workers in the central African country of operating like a ponzi scheme. One of the staff of the company claims the company lured staffs of rival outlets with mouth watering offers only to destabilize them.
Rebecca Enonchong, a Cameroonian-based tech entrepreneur, disclosed that the development is emblematic of Jumia; which she described as a badly-run business which is only in Africa to rip off Africans.
Meanwhile, Jumia revealed in a statement that its e-commerce platform activities in Cameroon were not suitable for the African state.
“We came to the conclusion that our transactional portal as it is run today is not suitable to the current context in Cameroon,” Jumia said in a statement to announce that its e-commerce operations in that country had been suspended.
However, the company said it would continue supporting buyers and vendors in Cameroon using its classified portal Jumia Deals.
The shut-down of its Cameroon operations makes it the third African country in which Jumia has folded up operations. It had earlier closed shop in Gabon and Congo Republic.
Meanwhile, a source at the company in Cameroon told Reuters that Jumia had chosen to prioritize growth over profitability; a move that had back-fired.
“We wanted to see how the business evolved. We can come back, but for now we’re closing to have time to study the market,” the source; who chose to remain anonymous, disclosed to Reuters.
The announcement of the suspension of its operations in Cameroon sent Jumia’s share price tumbling. Specifically, the shares hit a record low of $4.96.
Jumia had seen off a much-publicised listing on the New York Stock Exchange in April 2019. However, the company’s shares nose-dived after a report by US research firm, Citroen which declared the shares ‘worthless’. Equally, Citroen had claimed that Jumia had inflated the figures quoted in its prospectus.