Microsoft plans to invest US$297 million in South Africa to enhance AI and cloud capabilities, alongside commitments for digital skills training for 50,000 youth. This builds on its previous investment of 20.4 billion rand and underscores South Africa’s potential for economic growth. President Cyril Ramaphosa commended this move as reinforcing investor confidence in the nation’s economy.
Microsoft Corporation has announced an investment of approximately 5.4 billion rand (equivalent to US$297 million) in South Africa, aimed at enhancing its cloud and artificial intelligence capacities by the end of 2027. This commitment was disclosed by Vice Chairman Brad Smith during an event in Johannesburg, which precedes a significant investment conference in the nation. This new funding is in addition to Microsoft’s previous investment of 20.4 billion rand in South Africa’s economy, thereby providing a much-needed economic boost.
The investment initiative will finance certification exams in digital skills for 50,000 young South Africans within the next year, supporting innovation, economic growth, and skill development. This move is particularly crucial as South Africa strives to attract private investment and stimulate economic progress, which has averaged less than one percent per annum over the past decade.
Microsoft is a pioneer among major technology companies in establishing data centers in South Africa, setting a precedent followed by other firms like Amazon and Google. The company currently operates data centers in Johannesburg and Cape Town and has plans for additional infrastructure in Centurion, Gauteng, along with development of a US$1 billion geothermal-powered data center in Kenya.
President Cyril Ramaphosa recognized Microsoft’s commitment, stating that the investment reinforces the perception of South Africa as a fertile ground for business ventures and secure investments. He commented, “Microsoft’s investment signals to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure,” highlighting the company’s positive impact on the local economy.
In summary, Microsoft’s substantial investment in South Africa represents a significant commitment to the country’s economic development and workforce enhancement. By supporting digital skills training and expanding its technological infrastructure, Microsoft reinforces the message that South Africa remains an attractive destination for investment. This initiative not only raises prospects for economic growth but also aligns with the nation’s efforts to foster a skilled workforce in a rapidly evolving digital landscape.
Original Source: financialpost.com
