Natalia Pushkina, ALPINE Group partner for the Middle East and Africa, says:
This will eliminate the price advantage enjoyed by Chinese online retailers Shein and Temu, who split larger orders into small lots that were not subject to tax. Ultimately, this creates conditions for the development of the e-commerce sector in South Africa and for imports.

The proposed changes may help attract marketplaces, trading companies and distributors to the South African market, she believes.

In 2024, online retail sales in South Africa grew by 35%, while offline sales increased by 2.5%, according to a World Wide Worx report "Online Retail in South Africa - 2025". In her view, by the end of 2025, the share of e-commerce in South Africa’s total retail turnover will reach approximately 10%, compared with 8% at the end of the previous year.
“The introduction of electronic invoices and VAT reporting (e-invoicing) will make it possible to speed up VAT deduction processes,” Pushkina notes.

Amazon has already launched a marketplace in the country, and companies from the CIS are also showing interest in entering the market.
“There is no heavy bureaucratic pressure, but connections are still important for starting and running a business in South Africa,” Natalia stresses.

At present, Russian business in South Africa is represented mainly by two areas: large-scale mining and metals businesses, as well as small businesses in IT and winemaking.

Read more about which tax changes are opening the South African market to Russian companies in the RBC article.