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Source: Microsoft
Headline: Microsoft invests an additional ZAR 5.4bn in South Africa, launches program for digital skills
Johannesburg, 06 March 2025 – Microsoft today announced plans to spend ZAR 5.4bn by the end of 2027 to expand its cloud and AI infrastructure in South Africa to meet the growing demand for Azure services in the region. This investment builds on the company’s ZAR 20.4bn investment over the past three years to establish the nation’s first enterprise-grade datacentres in Johannesburg and Cape Town.
This round of investment will enable a wide range of organisations, from start-ups to large multinationals and government entities to access the cloud and AI solutions to improve operational efficiency and productivity, optimise the delivery of services, and drive innovation across the South African economy. Providing access to world-class digital infrastructure, coupled with enhancing the capabilities for the South African workforce helps contribute to a future where AI is seamlessly integrated into every aspect of society, driving growth and innovation.
President Ramaphosa said, “Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy. The strategic investment announcements made by Microsoft today stands as further testimony to this enduring confidence. They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure.”
Customers across various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already reaping the benefits of Microsoft cloud and AI technologies.
“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.”
According to the World Economic Forum, 60 percent of companies in the Global South identify a critical skills gap as a key barrier to business digitally transforming by 2030. Addressing this gap is essential for fostering economic growth and innovation. Earlier this year, Microsoft committed to skilling one million South Africans by 2026, equipping companies, government and youth with the knowledge and tools to create AI solutions to address local challenges with homegrown solutions, while contributing to the nation’s AI workforce and ecosystem.
To help job seekers validate their technology proficiency to employers, Microsoft will expand its digital skills initiative over the next 12 months by paying for 50,000 people to be “Microsoft Certified” in high-demand skills like AI, Data Science, Cybersecurity Analysis and Cloud Solution Architecture. Microsoft offers a variety of certifications under the Microsoft Certified umbrella, validating skills and expertise in areas such as cloud computing, artificial intelligence, data science, cybersecurity, and software development, to help individuals demonstrate their proficiency and readiness for in-demand tech roles.
By combining skills training with recognised certifications, Microsoft aims to create a future-ready workforce for South Africa and beyond.
This is just the latest in a string of investments in South Africa that span 30 years.
In 2024 alone, more than 150,000 people were trained in digital and AI skills, 95,000 certified and 1,800 secured employment opportunities through Microsoft’s Skills for Jobs programme, thereby addressing ICT skills gaps, preparing them for high-demand roles, and paving the way for their future success in the AI economy. Additionally, Microsoft has a longstanding commitment of providing donated and discounted software to South African educational institutions, nonprofit organisations, public libraries, and museums to enable equitable access to technology, educational tools and digital skills. Over the past year, that commitment exceeded $100 million in South Africa.
These are not just investments and programmes; they are an integral part of Microsoft’s long-term commitment to South Africa and pathways to a more inclusive, sustainable economy.
The development of robust technology infrastructure and the cultivation of digital skills are paramount in transitioning from a consumer to a producer of AI technology.
More broadly, Microsoft believes that South Africa has an opportunity to lead the way in enabling Africa to become a producer of AI technology, not just a consumer. According to a recent United Nations report, urgent infrastructure investments and regulatory frameworks are vital – specifically, investments in connectivity and AI governance frameworks.
By investing in cutting-edge infrastructure and fostering a skilled workforce, South Africa and Africa can unlock new opportunities for innovation, enterprise development, economic growth, and competitive advantage on the global stage.
The AI infrastructure operating in South Africa will be governed by Microsoft’s AI Access Principles. They reflect Microsoft’s expanding role and responsibility as a leader in AI and commit the company to making investments, forging business partnerships, and creating programmes that ensure broad access to its AI technology that enable organisations and individuals to develop and use AI in ways that will serve the public good.
It is also a notable year for Microsoft. In addition to celebrating the 50th anniversary of our company’s founding, it is the midpoint of our own sustainability journey. In 2020 we announced our ambitions to be carbon negative, water positive, and zero waste by 2030, all while protecting ecosystems. We have made tremendous progress over the past five years, and we are proud of what we’ve accomplished.
Today, we are one of the largest carbon-free energy buyers in the world, with a 34-gigawatt (GW) contracted renewable energy portfolio across 24 countries to date. We are bringing more carbon-free electricity onto the grids where we operate, and we continue to advocate for the expansion of clean energy solutions around the world. A key component of our water positive goal is to replenish more water than we consume across our global operations. We’ve grown our replenishment portfolio to 90 projects in over 40 locations around the world. We exceeded our land protection goal, with 15,849 acres of protected land and surpassed our initial target of 11,000 acres by more than 40%.
Microsoft continues to evaluate and diligently work to address sustainability and resource needs associated with infrastructure growth at both global and local level.
These efforts, and Microsoft’s additional investment in cloud and AI infrastructure and digital skilling highlight the company’s long-standing partnership with South Africa and commitment to boosting economic growth and resilience by fostering digital skills and employment opportunities.
Image: Microsoft Vice Chair and President, Brad Smith with the Honourable President of the Republic of South Africa Cyril Ramaphosa
MIL OSI Economics –