US retail and tech giant Amazon has announced plans to open its first African office in Cape Town, South Africa, with a real estate investment exceeding R4 billion.
This announcement comes just one week after Twitter revealed its decision to establish its first African base in Ghana.
Major Investment in River Club Development
According to Cape Town authorities, Amazon will be the anchor tenant in the new River Club development, a 15-hectare site in a prime area of the city.
The project is expected to:
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Generate 5,239 direct jobs during the construction phase
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Create 19,000 indirect and induced jobs
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Feature two main precincts — a 60,000sqm mixed-use space, and a 70,000sqm space that will house Amazon’s African headquarters
City officials confirmed that the development will occur in phases over three to five years, and represents a major milestone for Cape Town’s post-COVID economic recovery.
“US retail giant, Amazon, will be the anchor tenant, opening a base of operations on the African continent. The development is envisaged to take place in phases, with construction set to take place over three to five years,” said a Cape Town spokesperson.
Economic and Strategic Impact
Officials believe the River Club project will bring significant economic, social, and environmental benefits, and aligns with broader efforts to revitalise South Africa’s economy in the wake of the pandemic.
What You Should Know
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Amazon Web Services (AWS) already has data centres in Cape Town, but this move marks Amazon’s first direct office presence on the African continent.
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Amazon’s eCommerce platform is still unavailable in most parts of Africa, but this step signals its growing interest in the region’s digital economy.
