Alibaba, the global e-commerce powerhouse, has officially chosen Durban, South Africa, as its strategic base for expanding operations across Africa. The move follows high-level talks between eThekwini Mayor Cyril Xaba and Alibaba’s international trade executives at the company’s headquarters in Hangzhou, China, where discussions focused on positioning Durban as the gateway to the continent’s growing digital trade network.
Durban’s selection reflects its strong logistical advantages. The city is home to Africa’s busiest port, boasts an expanding warehousing and distribution network, and lies within close proximity to King Shaka International Airport - all of which make it an ideal hub for cross-border e-commerce. The partnership is expected to open new global trade opportunities for local entrepreneurs, small businesses, and startups through Alibaba’s platforms.
Beyond trade facilitation, the collaboration will include digital skills training, entrepreneurship support, and capacity-building programmes. These initiatives align with Durban’s vision to become a resilient, inclusive, and globally connected port city.
Alibaba’s retail arm, AliExpress, has already made headway in Africa. In March 2025, it expanded local currency payment options in South Africa, Algeria, Egypt, Ethiopia, Morocco, and Tanzania tackling one of the key barriers to online shopping: limited access to international payment systems.
The platform has also integrated M-Pesa in Kenya and enabled Opay and Verve card payments in Nigeria, simplifying transactions for millions of users. These developments have helped AliExpress cut delivery times to as little as 10 days in major markets such as South Africa, Kenya, Morocco, Nigeria, and Tanzania.
In a further effort to boost trust and enable bulk purchases, AliExpress recently opened its first African showroom in Ethiopia, allowing wholesale buyers to inspect products before placing orders.
Alibaba’s expansion comes amid intensifying competition in South Africa’s online retail space, where Chinese platforms Shein and Temu have already disrupted the market. Since Shein’s launch in 2020 and Temu’s entry in 2024, both platforms have rapidly gained popularity with local consumers.
According to a report by the Localisation Support Fund, Shein and Temu generated R7.3 billion in sales in 2024, capturing 3.6% of South Africa’s total clothing market and a staggering 37% of online clothing sales. Their combined share now surpasses that of established international brands such as H&M, Zara, and Cotton On, which collectively hold 3.4%.
Their direct-to-consumer model, which eliminates traditional retail middlemen, allows for ultra-low pricing, an approach that resonates strongly with South Africa’s cost-conscious consumers. Despite concerns about job losses and declining local manufacturing, surveys indicate that users of these platforms are highly loyal, with Shein alone accounting for 28% of online women’s clothing sales.
The influx of low-cost imports has, however, had economic consequences. Between 2020 and 2024, South Africa reportedly lost R960 million in local manufacturing revenue and around 8,000 jobs due to the rise of cheap e-commerce imports. In response, the government has moved to close tax loopholes that previously gave foreign platforms a competitive advantage.
Despite these measures, Shein and Temu continue to dominate South Africa’s e-commerce landscape. Together, they account for 15.3% of online shopping activity, second only to Takealot’s 32%. Temu’s market share climbed from 10.7% to 16.6% in 2024/25, while Shein’s grew from 12.3% to 15.1%, signalling their evolution from niche online players to mainstream shopping destinations.
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