South Africa government backs local brands in eCommerce push

South Africa is about to get a major digital boost. The government, through Proudly SA and the Department of Trade, Industry & Competition, is launching two new eCommerce platforms next week, July 1: Shop Proudly SA (for consumers) and Market Access Platform (MAP) (for businesses). This move is aimed at promoting local products, supporting small enterprises, and boosting job creation, a timely push amid growing calls to support homegrown brands.

These sites will host 1,700+ locally made products, making it easier for shoppers and procurement officers to find and purchase South African. The idea: strengthen local manufacturing, reclaim market share from cheaper imports, and help SMBs penetrate bigger markets, a localised twist on normal online marketplaces.

Big players like Takealot and incoming Amazon shouldn’t be shaken… yet. While Takealot dominates locally (66% of online shoppers used it in 2024, these new platforms carve out a space for South African goods. That said, Takealot and Amazon are key drivers of eCommerce growth: South Africa’s online market reached $35 billion in 2024 and is projected to hit $75 billion by 2033. Consumer trust plus mobile-first habits (60% of online buys via phone) work in the giants’ favour.

Still, local platforms may thrive. Why? South Africans reportedly prefer local clothing brands (74%) and often back homegrown names, especially post-pandemic. And with global entrants like Amazon and Temu entering the fray, these new government-backed platforms could tap into rising nationalist consumer sentiments.

For branding giants like Amazon, this means more competition but also opportunity. If the government solutions prove slow or limited in selection, shoppers could still turn to Takealot or Amazon for broader choices and faster delivery.  Plus, MAP might complement Amazon’s B2B outreach, especially as corporates seek local suppliers.

In short, government eCommerce enters the mix with local empowerment top of mind. Whether it flourishes depends on visibility, trust, and how well it meets logistical and marketing needs. Given South Africa’s deep mobile Internet usage (~75%) and rising online purchase comfort, this initiative aligns with broader trends, but it faces stiff competition from established local and global platforms.

Author Credits- Victoria Fakiya
Techpoint.africa