Amazon found the formula for entering South Africa that Starlink refused

As I read through the latest entry from TechCabal, a name caught my eye - Amazon Leo, a global satellite broadband service that is set to revolutionise the South African market. What struck me was not just the technology itself, but the approach Amazon decided to take in expanding into the country. Unlike its rival, Starlink, which has been unable to launch commercially in South Africa due to regulatory hurdles, Amazon chose a different path. Instead of seeking its own licence, it partnered with a local operator, Herotel, to launch its service through a new platform called evry. This collaboration marks a significant shift in the way global technology companies operate in African markets.

Amazon's decision to partner with Herotel is a clear departure from the traditional approach of seeking its own licence and operating independently. Herotel, one of South Africa's largest fixed internet service providers, will manage installations, customer support, and sales through the evry platform. This approach has several advantages. Firstly, it allows Amazon to enter the market faster, relying on Herotel's existing network and expertise to navigate the complex regulatory environment. Secondly, it benefits the local market by strengthening the existing ecosystem, rather than disrupting it. As Arthur Goldstuck, founder and CEO of World Wide Worx, a technology research firm, pointed out, "Amazon has really shown the way that foreign operators, ideally, should operate in South Africa."

Amazon's strategy is not new, however. The company has built other businesses on similar principles, such as Amazon Web Services (AWS), which provides infrastructure to companies rather than competing with them directly. In the same vein, Amazon Leo is designed to sit behind local operators, providing them with the necessary technology and support to offer high-speed internet services to their customers. This approach reflects Amazon's commitment to collaboration and partnership, rather than competition and disruption. As Goldstuck noted, "What we are really seeing is not a battle between Amazon Leo and Starlink. Amazon is avoiding the battle altogether by strengthening the offerings of operators already on the ground."

The impact of Amazon's entry into the South African market will be significant. With its high-speed internet services, Amazon Leo will enable businesses and individuals to access the digital economy, creating new opportunities for growth and development. The partnership with Herotel will also help to strengthen the existing ecosystem, providing a more robust and reliable internet infrastructure for the country. As South Africa continues to grow and develop, Amazon's entry into the market will play a crucial role in shaping the country's digital future.

• Amazon Leo will launch in South Africa in 2027 through a partnership with Herotel.
• The service will be available through a new platform called evry.
• Amazon will provide the satellite network while Herotel manages installations, customer support, and sales.
• The partnership marks a significant shift in the way global technology companies operate in African markets.

As I reflect on Amazon's entry into the South African market, I am struck by the potential for collaboration and partnership to drive growth and development. In an era of increasing competition and disruption, Amazon's approach offers a refreshing alternative, one that prioritises collaboration and partnership over competition and disruption. As South Africa continues to grow and develop, it will be interesting to see how Amazon's entry into the market shapes the country's digital future.