Amazon Headquarters Development in South Africa Halted by Court

Amazon Headquarters Development in South Africa Halted by Court

Amazon, the world's largest retailer, said last week that it would open its first African office in South Africa, with a real estate investment of more than 4 billion rand ($280 million). On 70,000 square meters (17.3 acres) of property on the outskirts of the city, the headquarters would be located.

Amazon is establishing its African headquarters in Cape Town, a project that would create thousands of jobs in a country where unemployment is at an all-time high.

In March, city officials gave their approval for Amazon to build a nine-story business and residential building on a greenfield site. Its offices will have a total floor area of 70,000 square meters (7.5 million square feet), which is about 10 football fields.

The construction project is planned to be completed in stages over the course of three to five years. Up to 19,000 indirect and induced jobs are estimated to be created as a result of the project. Amazon has had a presence in South Africa since 2004, with a customer support center open since 2010.

Amazon has also increased the capacity of its customer care center in South Africa during the last decade. Amazon stated in 2020 that it would hire an extra 3,000 people in South Africa, bringing the total number of employees in the country to about 7,000, to provide 24-hour service to consumers in North America and Europe.

Amazon's local listings have grown over time as well. In South Africa, Amazon Web Services (AWS) had only 50 job openings in 2019. In 2021, there will be roughly 118 job openings in the web service division, as well as another 38 in customer support, corporate development, human resources, and kindle content.

Amazon's Job Portal in South Africa

Amazon's South African career portal had 156 jobs advertised at the time of publication, the majority of which were full-time and based in Cape Town.

AWS operations account for over 80% of job openings, with the rest divided between customer service, the Kindle program, human resources, business development, and the students' program.

A bachelor's degree in information science or information technology, engineering science, computer science, or other related disciplines, or equivalent experience in a technical role, is required for the AWS operations positions.

Customer service positions at Amazon are entry-level positions that require a matric certificate (NQF Level 4), service industry experience, a reliable internet connection at home, and strong communication skills. Virtual Customer Service (VCS) opportunities are almost all of these occupations, and people can apply from anywhere in South Africa.

Amazon also has a number of internship programs for computer science, computer engineering, and related subjects for students and recent graduates.

Amazon covers 200+ nations and territories globally, with 200 million paid prime members and over 300 million customers, yet its eCommerce services are not available in Africa. Could Amazon's announcement of an African headquarters and an increase in job postings be a sign that it's reconsidering its eCommerce strategy in Africa?

Problems on Construction

The development in Cape Town has been blocked after a judge ruled that the developer had not adequately engaged Indigenous South Africans.

The $280 million project sparked a bitter debate among Indigenous, or First Nations, groups about whether constructing on what many regard as sacred land would defile or advance their history and culture, especially because the developer planned to incorporate an Indigenous cultural center.

The developer had exacerbated such differences, according to the judge, Patricia Goliath of the Western Cape High Court, by engaging in a prejudiced consultation process that excluded many Indigenous organizations.

"In the lack of meaningful engagement, Indigenous groups' fundamental right to culture and history is in jeopardy," she said.

The River Club, a golf course and driving range, was the most recent development on the site. Although different First Nations tribes disagree on what transpired at that specific place, they all believe that it is part of a larger area where their forefathers first resisted colonial invaders and where the first colonial land theft in South Africa occurred.

Construction began last year after city and provincial officials in the Western Cape approved the project, despite concerns raised by some government agencies that the developers had not adequately vetted Indigenous people's perspectives or the ways in which the development would detract from the site's heritage value.

Judge Goliath stated in her 79-page opinion that if the approvals were unlawful, it would be difficult for the parties who initiated the complaint to obtain proper remedies if the development was already underway. She not only stated that the building had to be halted, but also that the developer needed to communicate with Indigenous peoples further.

Leslie London, president of the Observatory Civic Association, which filed the complaint alongside the Goringhaicona Khoi Khoin Indigenous Traditional Council, said the judge "essentially went with truth and justice."

The city and province's decisions to approve the development must still be reviewed by the court to see if they are legitimate.

A lawsuit was brought by a First Nations organization and a local citizens' association to reverse city and provincial approvals. They also requested that work be halted while the case was being heard.

The decision is a success for campaigners who have been fighting Amazon's growing presence in South Africa for years, often by associating themselves with other international anti-Amazon campaigns. It's a sign of the criticism Amazon is receiving as it seeks to compete in new regions around the world.

"Just as South Africans blocked this mega-project, warehouse workers will demolish Amazon's oppressive e-commerce machine, and activists will put an end to the conglomerate's sponsorship of climate disaster," said Casper Gelderblom, an organizer with Progressive International.

A spokeswoman for Amazon, Zach Goldsztejn, declined to comment on the record.

The River Club, a $320 million mixed-use real estate development in Cape Town's Observatory district that will also contain residential units, public green space, and other amenities, will continue to have Amazon as its primary tenant. The proposal was approved by city officials last year, and construction began last year.

Opponents, on the other hand, have long claimed that the complex is being built on a significant Indigenous heritage site and that the project should never have been approved. It was the site of a conflict between Portuguese forces and a group of Khoi people in 1510, which some South Africans believe was one of the first examples of Indigenous resistance to colonialism.

The Observatory Civic Association and the Goringhaicona Khoi Khoin Indigenous Traditional Council sued the provincial court in August, requesting that development on the project be halted until the government's approval procedure is examined.

In her Friday judgement, Patricia Goliath, a judge on the Western Cape High Court, stated, "This matter fundamentally involves the rights of indigenous peoples." She claimed that the developer, Liesbeek Leisure Properties Trust, had not engaged in "appropriate engagement" with First Nations groups and that "building should cease immediately."