Takealot prepares for competitive face-off with Amazon in South Africa

Naspers Ltd., the most valuable company in Africa, is escalating its investments in its online retailer in South Africa to brace itself ahead of Amazon.com Inc.’s anticipated entry into the country’s rapidly expanding e-commerce sector.

Phuthi Mahanyele-Dabengwa, the CEO of Nasper’s South African division stated, “We are pouring significantly more investment into our ventures”. She further added, “We are skillfully poised to handle any competitive threats posed by Amazon’s debut in the country.”

South Africa, the most mature economy on the continent, boasts a young demographic together with one of the largest higher-middle-income markets in the area. Its potential is increasingly catching the attention of retail behemoths like Walmart Inc. and Amazon, with the latter planning an online delivery launch this year.

Naspers is the owner of Takealot, the premier online retailer in South Africa, and has been broadening its services to offer one-hour delivery for an array of products from phone chargers to toys, preparing for Amazon’s presence.

E-commerce accounts for a mere 4% of South African retail market, signaling the chance to accelerate growth by three to five times compared to other comparable nations, according to Mamongae Mahlare, Takealot CEO, in a statement last year.

In 2022, online retail sales in South Africa surged by 30% to R55 billion, as per a report by World Wide Worx, a market research company.

Reflecting on Amazon’s imminent arrival, Mahanyele-Dabengwa stated;

It’s beneficial for South Africa that Amazon is interested in entering the market. At Takealot, we believe we are exceptionally positioned. We comprehend our market extraordinarily well.