Microsoft Corp. has pledged to invest an additional 5.4 billion rand ($297 million) in South Africa by the end of 2027, further expanding its cloud and artificial intelligence (AI) infrastructure in the country.
The announcement was made by Brad Smith, Microsoft’s Vice Chairman, during an event in Johannesburg on Thursday, ahead of an upcoming South African investment conference.
Boosting Digital Skills and Economic Growth
The new commitment builds on the 20.4 billion rand that Microsoft has already invested in South Africa, reinforcing the country’s position as a growing tech hub. As part of the investment, Microsoft will fund certification exams for 50,000 young people in digital skills over the next year to support workforce development, innovation, and economic growth.
“Microsoft’s investment signals to the business and investor community that South Africa’s economy continues to hold immense potential and is a favorable place to do business,” said South African President Cyril Ramaphosa. “This company really has an African heart.”
Expanding Cloud and AI Infrastructure
Microsoft was one of the first major tech companies to establish data centers in South Africa, with facilities in Johannesburg and Cape Town. Last year, the company announced plans to expand its data capacity in Centurion, Gauteng, as part of its commitment to growing Africa’s digital infrastructure.
Beyond South Africa, Microsoft is making significant investments in other parts of the continent, including a $1 billion geothermal-powered data center in Kenya.
Strengthening South Africa’s Investment Landscape
South Africa is actively seeking private investment to accelerate economic growth, which has stagnated at less than 1% annually for over a decade. The additional funding from Microsoft is expected to bolster the country’s tech sector and enhance its position in the global AI and cloud computing industry.
Microsoft’s continued investment in South Africa reflects growing confidence in the country’s digital economy and its potential to become a leader in AI-driven innovation across the continent.