Microsoft Corp. is set to invest US$297 million in South Africa by 2027 to enhance its cloud and AI services. This investment will also support digital skills certification for 50,000 young people. The move is part of broader efforts to boost the country’s economic growth, which has struggled to surpass 1% annually.
Microsoft Corp. has announced a significant investment of 5.4 billion rand (approximately US$297 million) aimed at enhancing its artificial intelligence and cloud services in South Africa. This investment is anticipated to conclude by the end of 2027, further solidifying Microsoft’s presence in the country. The announcement was made by Vice Chairman Brad Smith during an event in Johannesburg, as the nation seeks to attract private investment for economic growth.
This latest investment builds on Microsoft’s existing commitment, which totals 20.4 billion rand invested in South Africa. The funds will facilitate various initiatives, including the certification of 50,000 young individuals in digital skills over the next year, promoting workforce development and innovation in the local economy. Currently, South Africa is facing an average economic growth rate of less than one percent per year, emphasizing the need for such investments.
Microsoft is recognized as a pioneer in establishing data centres in South Africa, with others like Amazon and Google’s Alphabet Inc. joining the trend. The company has operational data centres in Johannesburg and Cape Town, and it has plans to expand its capabilities further in Centurion, Gauteng province, complementing a similar investment in Kenya for a geothermal-powered facility. President Cyril Ramaphosa highlighted this investment, stating it reflects South Africa’s potential and stability for business endeavors.
Microsoft’s planned US$297 million investment in South Africa marks a crucial step in expanding its AI and cloud capabilities while reinforcing the country’s potential for economic growth. By fostering digital skills and creating jobs, this initiative aims to alleviate the long-standing economic stagnation. Given Microsoft’s established presence in the region, this investment signals a positive outlook for the business environment in South Africa.
Original Source: financialpost.com
