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  • Writer's pictureSeraphine Dogbey

Amazon readies to penetrate African market

Amazon, a global e-commerce technology company, is reportedly set to expand to African countries including South Africa and Nigeria in 2023, according to news that was first published by Business Insider.

Belgium, Chile, and Colombia are also among the five markets that the giant e-commerce company is set to penetrate next year, according to leaked documents that were seen by Business Insider.

According to The Cable, the timing of the rollouts in a detailed timeline would be between 2022 and 2023.

This development would mean serious competition for e-commerce platforms like Jumia and Takealot. Amazon currently has a presence in 20 countries and it aims to scale up in the main market in the US.

“South Africa, codenamed Project Fela, is also expected in February 2023. The marketplace in Nigeria is due to launch in April 2023. That project shares the codename Project Fela with South Africa,” the leaked report revealed.

The earliest project which is codenamed “Project Red Devil” will be launched in Belgium in September 2022. Colombia’s marketplace “Project Salsa” which shares the name with Chile will be scheduled for February 2023. On the other hand, the project in Chile will take off in April 2023.

The documents have also revealed that all the countries are planning to launch their own marketplace and access Amazon’s fulfilment service called Fulfillment by Amazon.

According to The Cable, Amazon’s Prime membership program will be available at launch in Belgium while other countries will have to wait until introduction.

“For example, Belgian shoppers, who are already able to sign up for prime through some of Amazon’s other European sites, will get their own dedicated prime service for a more consistent pricing and shopping experience,” the report said.

After Covid-19 hit the company lost sales. This development seeks to ensure that everything that was lost during the pandemic is restored and ensure more growth. The company has also been scaling back hiring, subleasing warehouse space, and limiting delivery network expansion this year in anticipation of unforeseen slowdowns.

Amazon has also been in the process of constructing its African headquarters in South Africa. There were, however, hiccups in the process after an indigenous group in the country claimed that the tech giant had not undergone the proper process to acquire the land on which it was to be built.

Source: Zintle Nkohla (IT News Africa)


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