BEVERLY HILLS, April 21, (THEWILL) – US retail giant, Amazon, says it plans to open its first African office in South Africa with a real estate investment of over R4 billion.
The announcement is coming a week after Twitter chose to open its first African office in Ghana.
Authorities in Cape Town confirmed this, saying that the development would create 5,239 jobs in the construction phase along with 19,000 indirect and induced jobs.
It added that Amazon would be occupying a new development in River Club, a prime section of the city. The 15-hectare parcel of land will cost R4 billion and include two precincts.
Authorities said the first precinct of 60,000sqm will occupy different layers of development; while the second section of 70,000 will hold Amazon headquarters in Africa.
“The development design intends to create a 150,000 square metre mixed-use space, divided into commercial and housing uses across two precincts. The developer intends 31,900 square metres to be used for residential purposes.
“The development will include both market-driven and affordable housing opportunities –the latter of which will be physically integrated with the other residential units in the apartment complexes.
“It is envisaged that 5,239 jobs will be created in the construction phase alone. The project will also create up to 19,000 indirect and induced jobs,” it said.
The Democratic Alliance (DA) has welcomed the announcement.
It said the Amazon South Africa HQ had the potential to create up to 19,000 jobs.
DA Shadow Minister for Trade, Dean Macpherson, says it would also inject around R4 billion into the local economy.
He says the extended COVID-19 lockdown has caused devastation in the South African economy.
Amazon already launched its data centres for Amazon Web Services (AWS) in Cape Town but its eCommerce services had until now not been available in Africa.
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