Global e-commerce giant Alibaba has officially chosen Durban, South Africa, as its strategic base for launching operations across the African continent. The announcement follows high-level engagements between eThekwini Mayor Cyril Xaba and Alibaba’s international trade representatives at the company’s headquarters in Hangzhou, China. The discussions centered on positioning Durban as the gateway for Alibaba’s broader push into African digital trade.
Durban’s selection is rooted in its logistics advantages. The city boasts Africa’s busiest port, a rapidly expanding warehousing and distribution network, and proximity to King Shaka International Airport, making it an ideal hub for cross-border e-commerce. The partnership is expected to unlock new opportunities for local entrepreneurs, SMMEs, and startups, enabling them to access global markets through Alibaba’s platforms.
Beyond trade access, the collaboration will introduce training programs, digital skills development, and entrepreneurship support, aligning with Durban’s vision to become a resilient, inclusive, and globally connected port city.
AliExpress: Strengthening African E-Commerce Infrastructure
Alibaba’s retail arm, AliExpress, has already made significant strides in Africa. In March 2025, it expanded local currency payment support across several countries, including South Africa, Algeria, Egypt, Ethiopia, Morocco, and Tanzania. This move addresses one of the biggest barriers to online shopping—limited access to international payment systems.
AliExpress has also integrated M-Pesa in Kenya and enabled Opay and Verve card payments in Nigeria, simplifying transactions for millions of users. These upgrades have allowed AliExpress to deliver orders within 10 days in key markets such as South Africa, Kenya, Morocco, Nigeria, and Tanzania.
To further build trust and facilitate bulk purchasing, AliExpress opened its first African showroom in Ethiopia, allowing wholesale buyers to inspect products before placing orders.
Chinese Platforms Reshape South African Online Retail
Alibaba’s entry into South Africa intensifies competition in a market already disrupted by Chinese e-commerce platforms Shein and Temu. These platforms have rapidly gained traction since Shein’s launch in 2020 and Temu’s debut in 2024.
According to a report by the Localisation Support Fund, Shein and Temu generated R7.3 billion in sales in 2024, capturing 3.6% of South Africa’s total clothing market and a staggering 37% of online clothing sales. Their combined market share now exceeds that of established global brands like H&M, Zara, and Cotton On, which collectively hold 3.4%.
Their direct-to-consumer model, which bypasses traditional retail channels, enables ultra-low pricing and appeals to cost-conscious consumers. Despite concerns over job losses and declining local manufacturing, surveys show that users of these platforms tend to become repeat customers, with Shein alone accounting for 28% of online women’s clothing sales.
Economic Impact and Regulatory Response
The rise of Chinese e-commerce platforms has had a significant economic impact. Between 2020 and 2024, South Africa lost an estimated R960 million in local manufacturing revenue and 8,000 jobs due to the influx of low-cost imports. The government has since closed tax loopholes that previously gave foreign platforms a competitive edge.
Despite these challenges, platforms like Shein and Temu now account for 15.3% of South Africa’s online shopping activity, second only to Takealot at 32%. Temu’s consumer share rose from 10.7% to 16.6% in 2024/25, while Shein’s grew from 12.3% to 15.1%, indicating their transition from niche players to mainstream shopping destinations.
Outlook
Alibaba’s expansion into Africa, anchored in Durban, signals a new chapter in the continent’s digital trade evolution. As Chinese platforms continue to reshape consumer behavior and retail dynamics, the challenge for local stakeholders will be to adapt, innovate, and compete in a rapidly digitizing marketplace.
