Amazon has announced its plans to launch its online shopping service in South Africa, making it the second African country, after Egypt, where the U.S. e-commerce giant will operate. Amazon, in its statement, revealed that the introduction of 'Amazon.co.za' in 2024 aims to provide independent sellers across the country with an opportunity to quickly establish, expand, and grow their businesses.

While South Africa is often seen as a gateway for companies looking to expand into the continent, analysts predict that the launch may not significantly disrupt the local industry or be a game-changer for Amazon due to existing challenges such as weak economic growth, high unemployment, and infrastructure issues. But it will surely intensify competition. Takealot, a major player in the South African online retail market, has expressed confidence in competing with Amazon, given its extensive delivery network and prevailing local appeal.

Meanwhile, the configuration of Amazon's platform in compliance with local competition regulations, which require the separation of retail operations from marketplace activities, is yet to be determined. Nevertheless, sellers can now register to sell on the platform.