Why South Africa instead of Nigeria?

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For this reason, the choice of South Africa raises a question: Why did Amazon bypass Nigeria? In terms of investment appeal, as well as wealth, Nigeria would have been an obvious choice. However, the lack of tax incentives, poor governance, and chaotic foreign exchange management are driving major brands away.

In this case, Amazon serves residents of over 120 countries, including 17 portugal mobile database countries. However, purchases on Amazon were routed through national postal services or private partners in Africa. This did not guarantee optimal customer service, which was limited by the lack of online shopping options in Africa. In short, Africans had to obtain electronic funds abroad to use Amazon services.

Until now, when it came to the African market, Amazon had focused on the cloud rather than commerce. The company had already hosted its Amazon Web Service (AWS) in Cape Town in 2017. AWS was accessible globally from the two Teraco data centers in Johannesburg. The tool, which provided a dedicated network connection from the Amazon site, gave access to the South African data centers via a private connection to Teraco. The AWS intranet ran at up to 10 Gbps.

It is therefore possible that the proximity of Teraco centers, as well as the stability of the electricity grid, prompted Amazon to establish itself in South Africa. It is also likely that insecurity in Nigeria was a predominant factor in the decision.