By Saul Molobi
Drakensberg Inclusive Growth Forum, 25-27 October 2024 – Amazon is doubling down on its commitment to small businesses in South Africa, with a vision to help local entrepreneurs thrive not only within the country but also on a global scale. Speaking at a recent event, Robert Koen, Managing Director of Amazon Sub-Saharan Africa, highlighted Amazon’s initiatives to support small businesses and remove barriers to entry for South African entrepreneurs eager to make their mark internationally.
“Small businesses are crucial to economic growth,” said Koen, emphasizing that Amazon has been operational in South Africa for nearly two decades, and that the company’s growth here has evolved into “a company of more than 6,000” across the country. He explained how Amazon’s presence has led to innovative programs like their Skill Center, the first outside the United States, which provides free cloud training to the public. This initiative, launched last year, has already trained thousands in cloud computing and artificial intelligence, key skills for any entrepreneur in today’s digital world.
In May, Amazon launched its South African online store, amazon.co.za, marking a significant investment aimed at creating a platform for small businesses. “We want to bring a broader selection, competitive prices, and a great online experience for our customers,” Koen noted. For entrepreneurs, Amazon’s marketplace presents a unique opportunity: over 60% of items sold on Amazon’s U.S. platform come from third-party sellers, many of whom are small businesses. Koen shared success stories of U.S.-based entrepreneurs who started with small products, like a homemade hot sauce or a practical medication necklace, and built multi-million-dollar businesses through Amazon’s platform.
For South African small businesses, getting started can be daunting due to challenges like logistics, brand-building, and product distribution. “Building a new brand is really hard,” said Koen. “A lot of entrepreneurs are good at creating products, but standing up a logistics operation, handling payments, and telling a compelling brand story online—those things are complex.” Through tools like Amazon’s Selling University, small businesses now have resources to create high-quality product pages, compelling visuals, and brand narratives to effectively reach online audiences.
One area Koen highlighted is “Shop of Mzansi,” a special section on Amazon’s South Africa store that features products from South African entrepreneurs. “This is just the beginning, but it’s a collection of small businesses,” he said, adding that local entrepreneurs are showcasing items like leather goods from Saul King Kong, which exemplifies the creativity and craftsmanship of South African brands.
Koen is confident that with the right support, South African businesses can break into international markets. “Imagine that in a few years, we could have a truly global brand that actually started here in South Africa,” he said. By removing entry barriers and focusing on growth through online marketplaces, Koen believes small businesses can create substantial export income for South Africa.
In closing, Koen issued a rallying call: “My challenge to everybody is just come together. Join us on this exciting journey, because we want to make a difference.” With Amazon’s support and South Africa’s entrepreneurial spirit, the groundwork is set for local businesses to not only compete but thrive globally.