Microsoft announced a significant ZAR 5.4 billion investment in South Africa’s cloud and AI infrastructure, coupled with an ambitious initiative to certify 50,000 young people in high-demand digital skills by 2027, marking a substantial commitment to the nation’s technological advancement.

The investment builds upon Microsoft’s existing ZAR 20.4 billion infrastructure development in Johannesburg and Cape Town over the past three years, which established South Africa’s first enterprise-grade data centers. This expansion aims to meet the growing demand for Azure services while positioning South Africa as a competitive player in the global AI economy.

South African President Cyril Ramaphosa endorsed the investment, stating, “Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy.” The President emphasized that this strategic investment signals South Africa’s continued potential as a favorable business destination.

Brad Smith, Vice Chair and President of Microsoft, reinforced the company’s commitment, noting, “For more than 30 years, Microsoft has been a committed partner to South Africa. This latest investment is part of our broader focus in helping South Africans build a future where technology drives prosperity and young workers have the skills they need to thrive.”

The initiative addresses a critical skills gap identified by the World Economic Forum, which reports that 60 percent of companies in the Global South face barriers to digital transformation due to workforce limitations. Microsoft’s response includes a commitment to skill one million South Africans by 2026, focusing on AI solution development and ecosystem growth.

The certification program represents a significant expansion of Microsoft’s digital skills initiative, offering credentials in crucial areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture. This builds on Microsoft’s successful 2024 campaign, which saw over 150,000 people trained in digital and AI skills, with 95,000 achieving certification and 1,800 securing employment.

Microsoft’s investment extends beyond infrastructure and training, with over $100 million dedicated to providing donated and discounted software to South African educational institutions, nonprofits, public libraries, and museums in the past year alone.

The company’s commitment to responsible AI development is guided by its AI Access Principles, ensuring broad access to AI technology while serving the public good. Additionally, Microsoft maintains strong sustainability goals, including aims to be carbon negative, water positive, and zero waste by 2030.

This comprehensive investment strategy positions South Africa to transition from an AI technology consumer to a producer, potentially leading Africa’s technological advancement. The initiative aligns with United Nations recommendations for urgent infrastructure investments and regulatory frameworks in AI development.

News Source: https://news.microsoft.com/source/emea/features/microsoft-invests-zar-5-4bn-in-south-africa/