South Africa : Why Amazon is expanding Web Services (AWS) not e-commerce in Africa

A day before Microsoft’s Azure Africa cloud services went live in 2019 with services offered from data centers in Johannesburg and Cape Town in South Africa, Huawei Cloud Data Centers started operations in Cape Town making it the first active cloud provider in the whole of Africa.

Last month, roughly a year later, Amazon Web Service (AWS) rolled out its first Africa data centers also in Cape Town.

Amazon has been present on the continent for 15 years.

Cape Town was one of the first international outposts for Amazon as it built a technology center and laid the groundwork for some tools used to help establish a global, market-dominant behemoth in AWS.

It’s done this on a continent where it doesn’t even operate in e-commerce, the business in which it made its name.

It’s not like there isn’t any demand, after all Jumia, the Dubai-based e-commerce company, has successfully positioned itself as the “Amazon of Africa”.

By Africafrique and agencies

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