Amazon Leo, a global satellite broadband service, is entering South Africa with a strategy that goes beyond connectivity. Instead of seeking its own licence, it partnered with a local operator, testing a different formula for expanding into Africa’s regulated telecoms markets. 

Amazon Leo, formerly known as Project Kuiper, will launch in South Africa in 2027 through a partnership with Herotel, one of the country’s largest fixed internet service providers. Instead of applying for its own electronic communications licence, Amazon will provide the satellite network while Herotel manages installations, customer support and sales through a new service called evry. 

The approach contrasts with Starlink, a rival satellite broadband service, which has been unable to launch commercially in South Africa after refusing to comply with the country’s 30% local ownership requirement.

Amazon’s entry suggests global technology companies do not always need regulators to change policy before expanding into African markets. By working with licenced local operators instead, they can enter faster while relying on partners that already understand the regulatory environment and customer needs.

“Amazon has really shown the way that foreign operators, ideally, should operate in South Africa,” Arthur Goldstuck, founder and CEO of World Wide Worx, a technology research firm, and a veteran telecommunications analyst, told TechCabal on Thursday. “Rather than literally dropping into the country, they are entering through the existing ecosystem.”

Goldstuck said Amazon’s strategy benefits both the company and the local market. “The significance is not only the business arrangement itself, but also the smooth entry of the operator into the country,” he said. “Instead of being a disruptive entity that could create chaos in both the customer experience and the business environment, Amazon is strengthening what already exists.”

The strategy also reflects how Amazon has built other businesses. Like Amazon Web Services (AWS), which provides infrastructure to companies rather than competing with them directly, Amazon Leo is designed to sit behind local operators instead of replacing them. “What we are really seeing is not a battle between Amazon Leo and Starlink,” Goldstuck said. “Amazon is avoiding the battle altogether by strengthening the offerings of operators already on the ground.”

Customers are unlikely to buy Amazon Leo directly. “They will buy services from Herotel, telecommunications companies like Vodacom, or other local providers,” Goldstuck said. “Through those relationships, customers will receive more versatile and resilient connectivity powered by Amazon Leo.”

For Herotel, the partnership will extend its broadband to areas where fibre remains too expensive to deploy. 

“Our goal is to connect homes and small businesses across South Africa,” Herotel CEO Van Zyl Botha said at Wednesday’s launch. “In the South African environment, it’s always difficult to reach people, especially where there is no backhaul fibre or power. With the Amazon Leo product, we can have a national reach beyond the existing telecoms infrastructure, and we can truly try and connect every South African and business.”

Goldstuck stated that Herotel serves more than 350,000 customers across over 550 towns, cities, and suburbs. “Its existing installation teams and support network allow Amazon to enter the market without building its own retail operation,” he said. 

Communications and Digital Technologies Minister Solly Malatsi welcomed the partnership at Wednesday’s launch, saying collaborations between global technology companies and South African operators can help expand broadband access while supporting the country’s digital economy ambitions.

The deal also raises fresh questions for Starlink. According to Goldstuck, the company has already worked with local internet providers in other countries, suggesting a similar approach could unlock the South African market. “We have already seen Starlink partner with local entities in other countries, where it provides the satellite service while local internet service providers sell it to customers,” he said. “So there is little reason why that cannot happen in South Africa.” 

If Amazon Leo succeeds, its biggest advantage won’t be its satellites. Instead, Amazon will decide to work with local partners rather than challenge the rules.

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