Jumia bullish on Egypt rebound, sees easing competitive pressure from Temu

Jumia has expressed optimism about a turnaround in its Egypt operations, citing restructuring efforts, rising weekly revenues, and expectations of sustained growth into 2026, even as competition intensifies across key African markets.

While speaking at the company’s fourth-quarter earnings call, Francis Dufay, CEO of Jumia, said Egypt remains one of its most strategic markets, despite intense competition and slow macroeconomic growth.

“In Egypt, we expect to catch up because we know it won’t be a slow-growth country. It’s obviously a competitive market, and we have big expectations for Egypt,” the CEO said.

He noted that it has undertaken extensive restructuring in the North African country, a move it says is already yielding results.

“We believe we have taken the right steps and made a lot of restructuring, and we are seeing revenue increasing weekly. We hope this momentum continues into 2026,” Dufay said.

Advertising and merchant growth strategy

As part of efforts to diversify revenue streams, Jumia’s CEO disclosed that it expanded its sponsored products offering in 2025, enabling medium-sized and smaller-priced vendors to advertise more effectively on its platform.

The initiative is aimed at improving merchant visibility, driving conversion, and boosting overall marketplace activity, particularly among small and medium-sized enterprises (SMEs), which account for a significant share of sellers across Jumia’s African markets.

Dufay also reaffirmed its competitive edge in partnering with international brands, citing its scale, logistics infrastructure, and reach across multiple African countries.

“We believe we have an edge with international brands and our reach,” he said.

Competitive pressure from Temu eases

While speaking on competition, Dufay said the market impact of Temu, a Chinese e-commerce giant, is beginning to soften, particularly in Nigeria and Ghana, where Temu has been aggressively expanding.

“We have seen Temu active in Nigeria and Ghana, but we are seeing the pressure reducing,” he noted, attributing the shift partly to increased scrutiny by local regulators and the introduction of new regulatory frameworks aimed at strengthening oversight of cross-border e-commerce and protecting local businesses.

“Local regulators are looking into it, and there is a new regulation,” Dufay said.

Outlook for 2026

Looking ahead, Jumia’s CEO said the firm remains cautiously optimistic about 2026, banking on improved operational efficiency, advertising revenue growth, and stabilising competition to drive performance.

He added that its focus will remain on strengthening core markets, improving unit economics, and deepening partnerships with both global and local merchants to achieve sustainable growth.

Folake Balogun is a tech journalist covering Africa’s fast-growing digital economy with a strong focus on incisive analysis of startup trends, venture capital, and fintech innovation, while also exploring emerging technologies such as artificial intelligence and the future of connectivity by highlighting their economic and social impact.

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