Expanding access to cloud and AI tools paves the way for small businesses, startups, and government services to embrace digital transformation, enhancing efficiency and accessibility. With this investment, South African businesses will be better positioned to integrate AI and cloud computing, driving productivity gains and streamlining operations.

On March 6, Microsoft announced plans to invest ZAR 5.4 billion ($297,664,532) in South Africa to expand its cloud and AI infrastructure by the end of 2027. This investment will support the growing demand for Azure services while enabling businesses, government entities, and startups to harness the power of AI and cloud computing to drive efficiency and innovation.

Speaking on the announcement, President Cyril Ramaphosa emphasized the significance of Microsoft’s long-standing commitment to South Africa, stating: “The strategic investment announcements made by Microsoft today stands as further testimony to this enduring confidence. They signal 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.”

As part of its commitment, Microsoft plans to expand its digital skills initiative over the next 12 months by sponsoring 50,000 Microsoft Certifications in high-demand fields such as AI, data science, cybersecurity, and cloud computing.

This investment builds on Microsoft’s 2024 achievements, where the company trained 150,000 people, certified 95,000, and helped 1,800 secure employment through its Skills for Jobs program. In January this year, Microsoft announced plans to provide 1 million people in South Africa with artificial intelligence (AI) training opportunities by 2026.

South Africa grapples with a significant digital skills gap, limiting its capacity to compete effectively in the global digital economy. A 2020 survey by Harambee, South Africa's Youth Employment Accelerator, titled Mapping of Digital and ICT Roles and Demand for South Africa, found that the country's shortage of technical skills led to the outsourcing of over 28,800 digital and ICT jobs each year. This resulted in an estimated annual loss of R8.5 billion ($55 million) in export revenue. Efforts like Microsoft’s initiative seek to bridge the gap by strengthening digital competencies across multiple sectors.

By strengthening its cloud and AI infrastructure, Microsoft aims to empower South Africa and the broader continent with the tools needed to compete globally, foster local enterprise development, and drive economic growth.

Hikmatu Bilali