Microsoft Corporation plans to invest US$297 million in South Africa by 2027 to expand cloud and AI capacities. This investment will support certification exams for 50,000 youth, fostering innovation and economic growth. The move underscores confidence in South Africa’s economic potential and its attractiveness for international investment.
Microsoft Corporation has announced an ambitious plan to invest US$297 million (approximately 5.4 billion rand) in South Africa by the end of 2027. This investment will enhance the company’s cloud and artificial intelligence capabilities within the nation. The announcement was made by Microsoft Vice Chairman Brad Smith at an event in Johannesburg, coinciding with a forthcoming South African investment conference.
This new commitment supplements Microsoft’s previous investment of 20.4 billion rand in South Africa, aimed at providing a significant economic uplift. Microsoft plans to allocate funds to cover certification exams in digital skills for 50,000 young individuals over the next year. This initiative is designed to promote innovation, growth, and comprehensive workforce development in the region.
South Africa is actively seeking to bolster private investment to drive its economic growth, which has stagnated at less than one percent annually for over a decade. Microsoft, as one of the pioneering tech giants to establish data centers in the country, is paving the way for subsequent companies such as Amazon and Google.
The company currently operates data centers in Johannesburg and Cape Town, with plans to expand further in Centurion, located in the Gauteng province. Furthermore, Microsoft is investing in a US$1 billion geothermal-powered data center in Kenya, indicating its commitment to the African region.
President Cyril Ramaphosa emphasized the significance of this investment, stating, “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.”
In summary, Microsoft’s planned investment of US$297 million in South Africa reflects a commitment to enhance its technological infrastructure and support local workforce development. By fostering digital skills among youth and reinforcing the economic landscape, this investment indicates strengthened confidence in South Africa’s economic potential. The narrative conveys the broader trend of increasing technology investments in the region, positioning South Africa as a viable destination for global tech firms.
Original Source: financialpost.com
