Amazon is set to open up its new base of African operations in Cape Town, South Africa. The company is currently based in an office block and has been on the hunt for a bigger base of operations in Cape Town since 2018, reports Business Insider.
The new headquarters will be located on a 15-hectare parcel of land that has been approved for development by the Liesbeek Leisure Properties Trust. The planned mixed-use development – where Amazon is listed as an anchor tenant – is expected to be a significant boost to the Cape Town economy as the impact of the COVID-19 lockdown remains.
“The planned mixed-use development will be a significant boost to the economy and the people of Cape Town in the aftermath of the national COVID-19 lockdown. The City has carefully and thoroughly considered all of the submissions and concerns during the appeal process,” says Executive Mayor, Dan Plato.
“We are acutely aware of the need to balance investment and job creation, along with heritage and planning considerations. It is clear that this development offers many economic, social and environmental benefits for the area. We are committed to driving investment to revitalise the economy, which is slowly recovering following the impact of COVID-19.”
Bob van Dijk, CEO of Naspers and Prosus believes that Amazon may not enter South Africa’s eCommerce sector “any time soon”. According to TechCentral, a key reason for this is “Naspers-controlled e-retailer Takealot.com is doing a really, really good job serving South African online consumers”.
“We look closely at the Net Promoter Score, which is really whether people like the service enough to recommend it to others. There, Takealot has done just a fantastic job,” says van Dijk. “If they manage to continue to make customers happy at scale, like they have been doing, then I think there is limited room for Amazon to come in and offer something better.”
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