South African President Cyril Ramaphosa has welcomed Microsoft’s R5.4 billion investment in the country, calling it a major step in advancing digital transformation, artificial intelligence (AI), and cloud computing.
The announcement was made on Thursday at Microsoft South Africa’s headquarters in Johannesburg, where the company outlined plans to enhance operational efficiency and digital innovation across multiple sectors.
Strengthening South Africa’s Digital Economy
Ramaphosa praised Microsoft’s commitment to South Africa, highlighting its presence in the country since 1992.
“Microsoft is an American company with an African heart,” he said, acknowledging the company’s role in shaping the local digital landscape and expanding cloud computing infrastructure.
The investment aligns with South Africa’s National Data and Cloud Policy, which aims to foster economic growth, digital innovation, and job creation.
AI Skilling Initiative and Workforce Development
A major highlight of the partnership is the National AI Skilling Initiative, which will train public servants in artificial intelligence, machine learning, and cybersecurity.
Microsoft has also signed a Memorandum of Understanding (MOU) with the National School of Government and the National Electronic Media Institute of South Africa to further support AI education and workforce development.
By 2026, Microsoft aims to train one million South Africans in AI and digital skills, addressing the country’s high youth unemployment rate and fostering tech entrepreneurship.
“For a country such as ours, with such a high youth unemployment rate, this comprehensive training will not only prepare young people for jobs in high-tech industries but also facilitate self-employment,” Ramaphosa said.
Microsoft’s Commitment to Economic Inclusion
Ramaphosa also acknowledged Microsoft’s achievement of Level 1 Broad-Based Black Economic Empowerment (B-BBEE) status, calling it a strong demonstration of the company’s dedication to addressing South Africa’s historical inequalities and fostering an inclusive business environment.
AI’s Role in Global Development and G20 Leadership
As South Africa leads the G20 in 2025, Ramaphosa emphasized the importance of AI in global economic growth and sustainable development. He stressed that AI should be used to narrow the digital divide, ensuring that developing nations are not left behind.
“Our country and continent have huge potential, driven by the talents and energies of our people. It is up to all of us, working in partnership, to ensure that AI and its associated technologies do not deepen the technology divide but narrow it,” he said.
South Africa-Microsoft Partnership: A Future-Driven Collaboration
Ramaphosa concluded by expressing excitement about South Africa’s collaboration with Microsoft to drive digital transformation and AI-driven economic growth.
“We are excited about partnering with Microsoft to make this a reality,” he said.
The R5.4 billion investment is expected to bolster South Africa’s position as a leader in AI innovation and cloud computing, while also creating new economic opportunities for businesses and individuals across the country.