Microsoft has announced a ZAR 5.4 billion investment in South Africa to expand its hyperscale and AI infrastructure, as well as skilling up 50,000 young people over the next 12 months. In USD, the investment comes to around $300 million, but currency exchange rates are always fluctuating.
With this deal, both parties should see benefits. According to Microsoft, the key benefits will be boosted innovation, economic growth for South Africa, and workforce development, giving people access to in-demand, and higher-paying roles.
The ZAR 5.4 billion will be poured into the country between now and the end of 2027. It builds on ZAR 20.4 billion of investments over the last three years, which led to the establishment of the country’s first enterprise-grade data centers in Johannesburg and Cape Town.
“For more than 30 years, Microsoft has been a committed partner to South Africa,” said Brad Smith, Vice Chair and President of Microsoft. “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.”
In regard to upskilling, Microsoft says it will pay for 50,000 people to become “Microsoft Certified” in fields like AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.
In 2024, Microsoft’s Skills for Jobs program trained over 150,000 people in digital and AI skills, certified 95,000 people, and secured employment opportunities for 1,800 people. The Windows maker has also donated and discounted software for educational institutions, nonprofits, public libraries, and museums in the country. These efforts cost the company over $100 million.
Microsoft cited a recent United Nations report which says infrastructure investments are urgent for Africa. By investing in South Africa, Microsoft believes it is helping the country lead the continent go from being a consumer of AI to becoming a producer of AI technology.
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