Amazon's entry heats up local competition in Egypt
US e-commerce giant Amazon opened its logistics zone in Egypt, offering new options to consumers and new challenges to small businesses.
SHARQIYAH, Egypt — In the 10th of Ramadan city in Sharqiyah governorate, Egyptian Prime Minister Mustafa Madbouly inaugurated on Aug. 31 a logistics zone for e-commerce giant Amazon on 28,000 square meters. The opening ceremony was attended by a number of ministers and company representatives.
The inauguration of the new zone coincided with the re-branding of Souq.com, the Middle East online retailer owned by Amazon since March 2017, as Amazon.eg.
In a statement on its official page, Amazon said it will provide the Egyptian market with millions of high-quality products and brands, a distinctive shopping experience with great prices and easy payment options, and fast, reliable delivery service. Amazon will offer these services through its more than 15 delivery stations across Egypt and investments that exceed 1 billion Egyptian pounds ($63.5 million), according to the statement.
These new developments come amid Egypt’s steady e-commerce development and growth, especially in light of the coronavirus pandemic. According to Ibrahim Ashmawy, head of the Internal Trade Development Authority, the e-commerce market volume in Egypt has reached about 80 billion Egyptian pounds ($4.8 billion) based on official statistics.
