Amazon bets big on Egypt as inflation reshapes online shopping

Africa

Egypt’s prolonged economic turbulence has sharply altered consumer behaviour and accelerated shifts within the country’s fast-growing e-commerce sector, Amazon Egypt’s head said in an interview, pointing to a surge in demand for essential goods and an unexpected boom in locally manufactured products.

For more than two years, Egyptians have faced one of the toughest economic periods in recent memory. Inflation has soared to historic highs, the pound has undergone repeated bouts of volatility and families have been forced to cut back on non-essential purchases. These pressures, said Amazon Egypt General Manager Omar Elsahy, have been clearly reflected in the platform’s sales patterns.

“Demand for essential goods, particularly food items and basic household products, has grown tremendously,” Elsahy said “Our priority was to strengthen our presence in these categories to ensure that Egyptian families could access the essentials they rely on every day.”

While consumer spending has tilted heavily toward necessities, Elsahy said a parallel trend has emerged: a marked rise in the availability, quality and demand for Egyptian-made products. He said local manufacturers from established factories to small producers and artisans have increased output across categories including apparel, home goods and personal accessories.

“The rise of local manufacturing has been transformative for Egyptian e-commerce,” he said. “Customers are increasingly choosing local products not just for price, but for quality and uniqueness. Supporting these entrepreneurs is part of Amazon’s DNA, hence our dedicated storefronts and programmes for Egyptian SMEs.”

He added that the strength of this seller community has become one of the main drivers of Amazon’s growth in Egypt over the past three years, despite the economic headwinds. “When local sellers succeed,” he said, “customers get better selection, communities flourish and the digital economy grows stronger.”

As demand patterns shift, Amazon has expanded its logistical capacity in the country. Elsahy said the company’s storage footprint has now exceeded 100,000 cubic metres across its operations, anchored by major fulfilment centres in 10th of Ramadan City and on the Suez Road, along with several additional sites managed with local partners.

One of the company’s newest facilities, he noted, offers storage space equivalent to ten football fields. “These expansions are not a temporary reaction to rising demand,” he said. “They are part of a forward-looking strategy to prepare for the next three years of growth.”

Elsahy attributed much of Amazon’s confidence in the market to Egypt’s recent progress in digital transformation, logistics development and financial inclusion—three elements he described as vital to improving the speed and reliability of e-commerce services.

Since Amazon launched in Egypt in 2021, cooperation with government authorities has deepened. He said the relationship is shaped by a shared ambition to expand the digital economy and empower local manufacturers and sellers. A meeting in April between Egypt’s Prime Minister and Amazon’s global CEO served as a review of ongoing expansion plans to ensure alignment with national priorities, including digital transformation and financial-inclusion efforts.

“Government support has been crucial,” Elsahy said. “It facilitated licensing, enhanced the regulatory environment and enabled smoother business operations.”

Amazon has also scaled up its partnerships with business associations and SME-support programmes, bringing hundreds of local factories and companies onto its seller network. The push has increased the visibility of Egyptian-made products on Amazon.eg and connected more small businesses to nationwide and global customers.

Elsahy said financial flexibility has become just as important as product selection. To meet this demand, Amazon has broadened payment options through partnerships with banks and services such as Valu. These collaborations have allowed customers to spread payments over time—particularly during major shopping events such as the White Friday Sale—using instalment plans, buy-now-pay-later tools and 0% interest promotions.

“Egyptian customers are looking for flexibility in how they pay, especially for higher-value purchases,” he said. “Every investment decision we make centres on customer needs.”

Asked about expectations for emerging technologies such as warehouse robots and drone delivery, Elsahy said Amazon’s most significant innovations are rarely the ones visible to customers. “What truly elevates the customer experience is faster fulfilment, higher accuracy and better availability,” he said. “Those are the areas where most innovation happens.”

Despite the economic shocks of recent years, Elsahy voiced confidence in the market’s long-term trajectory. “Egypt has tremendous potential, with strong customer demand across many categories,” he said. “We grow thoughtfully, but never before we are ready to deliver a great customer experience.”

He added that Amazon’s guiding principle remains consistent worldwide. “Every decision begins with one question: does it serve the customer? If the answer is yes, we move. If not, we wait.”

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