Shares of e-commerce companies Jumia and MercadoLibre plummet following Insider's report about Amazon's expansion plan in Africa and South America

• Shares of African e-commerce company Jumia dropped nearly 10% on Thursday, while Argentina-based MercadoLibre were down more than 7%.
• The drop follows Insider's report about Amazon's plan to expand into five new countries across Africa, South America, and Europe.

Two leading e-commerce companies in Africa and South America saw their stock tumble on Thursday, following Insider's report about Amazon's plans to further expand into those regions.

Jumia, a leading online marketplace provider in Africa, saw its shares drop nearly 10% as of Thursday afternoon. MercadoLibre, the largest e-commerce company in Latin America with services across Brazil, Argentina, and Chile, slipped more than 7%.

The declines come amid broader market rout this week after the Federal Reserve announced the biggest interest-rate increase in nearly 30 years. The S&P 500 was down about 2.9% as of Thursday afternoon, while the Nasdaq Composite dropped 3.6%.

Amazon is planning to launch marketplaces in Nigeria, South Africa, Chile, and Colombia by early next year, Insider reported on Thursday. The expansion will likely mean more competition for local e-commerce companies, like Jumia and MercadoLibre. Amazon also plans to expand to Belgium, according to internal documents obtained by Insider.

All countries are expected to get their own marketplace and access to Amazon's fulfillment service called Fulfillment by Amazon, the documents said. Amazon also plans to bring its Prime membership program to each of the countries shortly after the launch, it said.

Do you work at Amazon? Got a tip? Contact reporter Eugene Kim via the encrypted messaging apps Signal or Telegram (+1-650-942-3061) or email (ekim@insider.com).