Ramaphosa has Welcomed Microsoft's Announcement of R5.4 Billion Investment in South Africa.

Ramaphosa has Welcomed Microsoft's Announcement of  R5.4 Billion Investment in South Africa.
Illustration by N.Mulaudzi | Images used on this illustration may be subjected to copyrights

President Cyril Ramaphosa has welcomed Microsoft's latest commitment to South Africa, as the global technology leader announced a R5.4 billion ($298 million) investment in artificial intelligence (AI) and data center infrastructure. The announcement was made on Thursday at Microsoft South Africa’s head office in Johannesburg, where Ramaphosa delivered the keynote address.

This investment is part of Microsoft’s broader initiative to expand cloud computing and AI capabilities in South Africa, catering to the increasing demand for Azure services across the Southern African Development Community (SADC) region.

Ramaphosa emphasized that Microsoft's continued investment reinforces South Africa’s position as a key player in the digital economy. “This investment demonstrates confidence in our country’s technological potential and will play a crucial role in driving digital transformation, job creation, and skills development,” he stated.

Microsoft Vice-Chair Brad Smith confirmed the investment, stating, "We are investing more money to expand our AI and data center infrastructure here." The company also reaffirmed its commitment to training one million South Africans in AI, machine learning, and cybersecurity by 2026, an initiative first announced in January.

This follows Microsoft’s previous R20.4 billion investment, which established South Africa’s first enterprise-grade data centers in Johannesburg and Cape Town. These facilities have been instrumental in enhancing digital services, supporting businesses, and fostering technological innovation across various sectors.

The South African government views this partnership as a significant step toward strengthening the country’s digital ecosystem. By working with global tech giants like Microsoft, South Africa aims to drive economic growth, enhance digital skills, and position itself as a leader in Africa’s evolving technology landscape.

With this latest commitment, Microsoft continues to shape South Africa’s future in AI and cloud computing, ensuring that businesses and individuals have access to world-class digital infrastructure and skills development opportunities.