Alibaba Sets Its Sights on South Africa as Next Major E-Commerce Battleground

Alibaba is preparing to enter the African market in a major way — and South Africa, specifically the city of Durban, has been chosen as the company’s strategic launchpad. The eThekwini Municipality confirmed that Mayor Cyril Xaba met with Alibaba executives at the company’s global headquarters in Hangzhou, where plans to position Durban as Alibaba’s African gateway were formally discussed.

Durban Selected as Alibaba’s African Hub

Durban’s strong logistics infrastructure played a decisive role in the selection. The city boasts one of the busiest ports on the continent, a growing distribution and warehousing ecosystem, and the support of King Shaka International Airport — making it an ideal center for high-volume, cross-border e-commerce.

According to municipal officials, the partnership will help South African entrepreneurs, small businesses, and start-ups access global supply chains through Alibaba’s powerful business-to-business platforms.

This marks the latest step in Alibaba’s broader strategy to deepen its presence in African consumer markets.

AliExpress Already Reshaping Online Shopping in Africa

Alibaba’s retail subsidiary, AliExpress, has been aggressively adapting to African markets:

• Expanded local currency payment support in South Africa, Algeria, Egypt, Ethiopia, Morocco, and Tanzania.
• Integrated M-Pesa in Kenya and enabled Opay and Verve payments in Nigeria.
• Improved delivery timelines to within 10 days across several African countries.
• Opened its first physical showroom in Ethiopia for wholesale buyers.

AliExpress says its goal is to remove friction from online imports — improving both payments and logistics — while tapping into Africa’s rapidly growing online consumer base.

Chinese Platforms Reshaping South Africa’s E-Commerce Sector

Alibaba’s entry intensifies competition in a market already transformed by Chinese fast-growing platforms Shein and Temu, which have quickly become dominant players.

According to a report commissioned by the Localisation Support Fund:

• Shein and Temu generated R7.3 billion in sales in 2024.
• They captured 37% of South Africa’s online clothing market.
• Combined, they now hold 3.6% of the country’s total clothing market — surpassing H&M, Zara, and Cotton On combined.

However, the rapid rise of low-cost imports has also hurt local industry. The report estimates losses of:

• R960 million in domestic manufacturing revenue
• 8,000 jobs eliminated since 2020

Shein entered South Africa in 2020, followed by Temu in 2024. Their ultra-low prices — achieved by connecting buyers directly with factories — have made them particularly attractive to cost-conscious consumers.

Although nearly half of online shoppers say they avoid the platforms, those who use them tend to become loyal repeat purchasers.

In 2024:

• Shein and Temu together accounted for 15% of all online shopping in South Africa.
• Temu’s user share rose from 10.7% to 16.6%.
• Shein climbed from 12.3% to 15.1%.

Their user bases are now comparable to Checkers Sixty60, showing just how mainstream these platforms have become.

A New E-Commerce Power Enters the Arena

Alibaba’s expansion into Durban signals the arrival of yet another heavyweight competitor — one with deep global infrastructure, unmatched digital trade experience, and the ability to reshape market dynamics even further.

As South Africa’s online retail sector continues to grow, the presence of Alibaba, alongside Shein and Temu, is poised to accelerate competition, disrupt traditional retail models, and permanently alter the country’s e-commerce landscape.

Whether this shift will bring new opportunities or deeper pressure for local businesses remains one of the biggest questions facing South Africa’s digital economy.