Amazon has officially launched its online marketplace, Amazon.co.za, in South Africa, marking its first direct e-commerce venture on the African continent. With a rapidly growing digital marketplace valued at $3 billion, Amazon promises same-day and next-day deliveries across 20 product categories, offering items from local and international brands. They have also established 3,000 pickup points throughout the country for added convenience, with order updates available via WhatsApp.
While Amazon has had a presence in Africa through its cloud computing arm, AWS, since the early 2000s, its new e-commerce venture aims to tap into South Africa’s booming online sales, which reached 71 billion rand in 2023. Despite facing competition from local giants like Takealot and Jumia, Amazon strategically focuses on building a robust logistical base initially, rather than launching Amazon Prime.
Amazon’s Expansion into South Africa
Amazon sees South Africa as a springboard for broader African expansion, with e-commerce users in Africa projected to reach half a billion by 2025. The company’s presence could further boost growth in Africa’s digital commerce sector, with positive support from the government and expectations for job creation and addressing socio-economic disparities.
Amazon’s entry into South Africa may have significant implications for the broader African market, marking a bold step into the continent’s evolving e-commerce landscape.