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OLX has gone packing out of west Africa

After being in the News for allegedly losing $53M in the zinox acquisition of Konga, Naspers broke the headlines again after it announced it’s shutting down all OLX offices and physical operations in Nigeria, Ghana, and Kenya.

A very difficult but important decision in Nigeria was made to consolidate the operations between some of its offices internationally. The marketplace will continue to operate in West Africa by operating remotely and will remain committed to the many people here who use the platform to buy and sell every month. The company says its focused on constantly innovating to make sure OLX remains the top classified platform in the country.

“Of course, we are committed to helping our affected colleagues during this transition and have already meaningful financial and other support in place, as we’ve expressed to them directly, we are extremely grateful for their many significant contributions to OLX’s success,” CEO Sjoerd Nikkelen told techpoint.

Africa might have experienced some growth in the adoption of internet technology and foreign businesses coming to invest in Africa, But doing business in Africa is still a bit of a headache because of it non-stable economic.

There are rumours around about uber leaving Africa to focus on its core market in the US, Europe and Austrailia. Jumia the biggest e-commerce company in the continent hasn’t decelerated profitable since inception 5 years ago.

Naspers, a multinational media group and major investor in multichoice, OLX and recently acquired Konga might be slowly moving away from Africa.

E-commerce companies (B2C or marketplace) are really finding it hard to gain grounds in Africa with delivery, high cost of operations and unmapped locations as it’s major challenges.

In 2017 effritin went packing for good, reasons citing poor internet penetration and adoption, high cost of data as well as challenging economic conditions. 

Early this year Jiji struggled to sustain its profitability but later opted for ads marketing on its website. This seems to be good news for Jiji as it’s for now, the only classified e-commerce marketplace in Nigeria. 

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