Microsoft is set to invest an additional 5.4 billion rand ($297 million) in South Africa by 2027, ramping up its cloud and AI infrastructure in the country.
Why it matters
- The move reinforces South Africa’s position as a key tech hub in Africa.
- It builds on 20.4 billion rand Microsoft has already poured into the country.
- The investment aims to boost digital skills, covering certification exams for 50,000 young people over the next year.
Driving the news
- Microsoft Vice Chairman Brad Smith announced the pledge at an event in Johannesburg ahead of a key investment conference.
- The company already operates data centers in Johannesburg and Cape Town and is expanding in Centurion.
- Microsoft has also committed $1 billion to a geothermal-powered data center in Kenya.
The bigger picture
- South Africa is courting private investment to jumpstart an economy that has struggled with sub-1% annual growth for over a decade.
- Microsoft was an early mover in Africa’s cloud market, with Amazon and Google following suit.
What they’re saying: President Cyril Ramaphosa called the investment a vote of confidence in South Africa’s economy, adding: “Microsoft really has an African heart.”
Source: Bloomberg
