Originally written in 2019. Updated with reflections from 2025.

On November 27, 2019, Jumia announced it would cease operations in Tanzania. Africa’s e-commerce giant pulled out from a market of 23 million internet users, citing a need to focus on countries where they could bring “the best value.”

At the time, Business Insider reported heavy losses across the group, and Tanzania wasn’t alone — Cameroon was also shut down.

The big question then was: Does this prove Tanzania is too difficult for digital business? Or was Jumia’s model simply flawed?

Back in 2019, we concluded: both.

Tanzania had the users but not yet the digital habits. Many were still climbing the ladder of online literacy — confusing “Sign In” with “Sign Up,” uneasy with filling forms, wary of online payments. The cultural pull of face-to-face shopping was (and still is) strong.

But Jumia also failed to humanize its brand. The platform’s local presence felt transactional, not relational. The Instagram feed was full of promotions, not people. Few customer testimonials, no vendor stories, no cultural touchpoints. Trust — the real currency of e-commerce in Africa — was missing.

We wrote then: The rule of thumb for 2020 is not about advertising and branding, it’s about building great customer experience.

Five years later, the point holds — but the lens is sharper.

What We’ve Learned Since

Jumia’s retreat fits into a wider pattern. Well before 2019, foreign supermarkets like Uchumi, Shoprite, and Game also exited Tanzania. The reasons sound familiar: low purchasing power, weak middle-class base, store locations that didn’t match commuter flows, and a lack of cultural resonance. Local supermarkets like Shoppers Plaza and Shrijees thrived because they knew how to blend convenience, local sourcing, and familiarity.

The parallel with e-commerce is striking. Just as shoppers stuck to neighborhood dukas instead of malls, digital buyers in Tanzania often prefer WhatsApp sellers, informal Facebook pages, or direct calls over polished apps. The trusted middle layer — the boda guy, the family shop, the WhatsApp vendor — still mediates commerce.

Foreign entrants who succeed here do three things differently:

1. Localize, don’t transplant. They adapt business models to local payment behaviors, delivery realities, and cultural trust gaps.
2. Blend offline with online. Digital isn’t a replacement channel; it’s an amplifier of existing buying habits.
3. Tell human stories. In markets where trust is scarce, stories carry more weight than discount codes.

The Deeper Lesson

Looking back, Jumia’s failure wasn’t just about digital literacy or unit economics. It was about market fit. Success in East Africa isn’t about scaling fast with imported playbooks. It’s about embedding yourself in local culture, supply chains, and consumer psychology.

That’s what Uchumi, Shoprite, and Jumia misread — and what local players keep proving true.

For any business eyeing Tanzania today, the question isn’t “How big is the internet penetration?” It’s: Do you understand the trust dynamics, buying patterns, and cultural rhythms of this market well enough to design for it?

That’s the enduring insight from Jumia’s exit. And it’s why businesses entering East Africa need more than market data. They need local strategy, cultural literacy, and go-to-market creativity rooted in reality.