Amazon Web Services (AWS) has begun offering its services in local currencies in Egypt and Nigeria, escalating competition in these rapidly growing cloud computing markets. The move pits the global giant against a burgeoning field of local startups seeking to capture market share by offering tailored solutions and local payment options.
AWS recently announced that customers in Egypt can now pay in Egyptian Pounds (EGP) and those in Nigeria in Nigerian Naira (NGN). This follows similar moves in other emerging markets, including Chile, Colombia, Uruguay, Poland, Romania, and Ukraine. The company cited the importance of local currencies in easing the payment experience, removing foreign exchange costs, and mitigating the impact of local regulations on foreign currency access.
This strategic shift comes as local competitors in both countries are gaining traction by focusing on the specific needs of their domestic markets. In Nigeria, fintech startup Okra recently launched “Nebula,” an infrastructure-as-a-service (IaaS) offering built on Tier 3 and Tier 4 data centres. Okra claims Nebula offers comparable performance to global players like AWS and Microsoft Azure, with low latency and high reliability, while complying with local data residency laws.
A key differentiator for Okra is its pricing model. Nebula customers can pay in Naira, providing predictable and potentially more affordable rates compared to foreign cloud providers that typically charge in US dollars. This addresses a significant pain point for Nigerian businesses, which are often exposed to currency devaluation and fluctuating exchange rates.
“For too long, Africa has leaned on imported solutions, paying premiums for software and services,” said Okra CEO Fara Ashiru. “And now, there’s a cloud built here, for us, and it’s just as good — if not better.”
Okra’s move into cloud infrastructure follows a $16.5m funding round and a strategic shift away from its original focus on open banking APIs. The company recognised the limitations of the open-banking market and saw an opportunity in the growing demand for local cloud solutions, according to African investment firm Daba.
Okra is not alone in this endeavour. Other Nigerian startups, including Nobus, Galaxy, and Layer3, are also positioning themselves as alternatives to AWS and Azure, offering local currency payments and tailored services. This competitive landscape is forcing global players like AWS to adapt their strategies.
A similar dynamic is playing out in Egypt, where local competitors such as Cloud AI-D and dopay are vying for market share against international players. These local providers often emphasize localized support, regulatory compliance, and a deeper understanding of the Egyptian market.
The entry of AWS into the local currency arena represents a significant escalation in the competition. While local players have benefited from their agility and focus on specific regional needs, AWS brings significant scale, resources, and a broad portfolio of cloud services. The ability to pay in local currencies levels the playing field somewhat, forcing local competitors to further refine their value propositions.
Amazon ‘s battle for cloud market share in Egypt and Nigeria highlights a broader trend in emerging markets. As these economies digitize, the demand for cloud services is growing rapidly, creating opportunities for both global giants and local startups. The ability to offer competitive pricing, localized solutions, and convenient payment options will be crucial for success in this increasingly dynamic market.