Johannesburg – President Cyril Ramaphosa described Microsoft as “an American company with an African heart.”
During the investment announcement on Thursday, March 6, 2025, President Ramaphosa highlighted that Microsoft “has consistently operated in South Africa since the dawn of our democracy, having opened its first offices here in 1992.”
Since then, Microsoft has greatly expanded its local presence and currently collaborates with thousands of partners and clients.
On Thursday, Microsoft declared its plan to invest R5.4 billion by the end of 2027 to bolster its cloud and AI infrastructure in South Africa, addressing the rising demand for Azure services in the area.
This new investment aligns with Microsoft’s previous R20.4 billion investment over the past three years to establish the country’s inaugural enterprise-grade data centers in Johannesburg and Cape Town.
President Ramaphosa praised Microsoft’s commitment to skills and capacity building in South Africa.
Microsoft is actively working to empower young South Africans with the skills needed in the digital economy.
“We are particularly excited about the launch of the National AI Skilling Initiative, intended to provide AI skills training for public servants,” President Ramaphosa remarked.
“We look forward to the signing of the MOU [memorandum of understanding] between Microsoft, the National School of Government, and the National Electronic Media Institute of South Africa.
“Microsoft’s growing investments in data centers and cloud services fortify its status as a leading player in cloud computing in South Africa.”
Microsoft stated that this round of investment will provide cloud and AI solutions to a diverse range of organizations, from startups to large multinationals and government entities.
This initiative is designed to enhance operational efficiency and productivity, improve service delivery, and foster innovation throughout the South African economy.
Providing access to cutting-edge digital infrastructure, along with strengthening the capabilities of the South African workforce, contributes to a future where AI is seamlessly integrated into all facets of society, promoting growth and innovation.
Last year, the South African government unveiled the National Data and Cloud Policy to enhance digital innovation across the economy.
“In tandem with expanding cloud infrastructure, we are strengthening our regulatory frameworks,” President Ramaphosa elaborated.
“We are putting the finishing touches on a Cybersecurity Bill.
“This will boost the security of online government services and enable citizens to engage in online transactions with confidence.
“As part of our commitment to reform the public service and improve state capabilities, we’re investing in digital public infrastructure to ensure that South Africans have 24/7 access to government services.”
President Ramaphosa underscored that at the heart of this transformation is the implementation of a digital identity system, which will change the way citizens interact with the government, making it convenient and accessible for everyone.
“Microsoft’s lasting presence in South Africa sends a strong signal of confidence in our country and economy,” President Ramaphosa stated.
“The strategic investment announcements made by Microsoft today reinforce this sustained confidence.
“They indicate to the business and investment community that South Africa’s economy is full of potential and continues to be a favorable landscape for secure investments.”
Over the last five years, Microsoft has made considerable investments in cloud technology, data centers, agriculture, and transforming government services through digital means.
“It is commendable that Microsoft has attained Level 1 Broad-Based Black Economic Empowerment status,” President Ramaphosa remarked.
“This reflects a remarkable commitment to our nation’s empowerment goals.
“We acknowledge that Microsoft has worked tirelessly to achieve this status.”
The company has successfully incorporated the objectives of broad-based black economic empowerment into its business practices, focusing on ownership, management control, and skills development.
Microsoft has demonstrated its commitment to addressing the historical inequalities of South Africa’s past and creating an inclusive business climate.
“It is fitting that Microsoft encapsulates its mission and values with the phrase: ‘We empower the world’,” President Ramaphosa added.
“Today’s gathering signifies a meeting of trailblazers, both for South Africa and the continent.
“The transformative potential of AI must not be underestimated, and the global community is eager to seize the opportunities it brings.”
According to the United Nations Development Programme, the development, governance, and application of AI must be inclusive and equitable.
It should ensure that no country is left behind.
AI holds significant promise to drive economic growth across nearly every sector.
AI-enhanced computing capabilities are improving existing businesses and setting the foundation for new enterprises.
“Our nation is crafting a National AI Policy intended to position South Africa as a frontrunner in AI innovation while simultaneously tackling its ethical, economic, and societal challenges,” President Ramaphosa stated.
“We must heed the warning from UN Secretary-General António Guterres that Artificial Intelligence without ‘guardrails’ could exacerbate inequalities and digital divides.
“The AI revolution serves as a catalyst for job creation, especially for young individuals.”
President Ramaphosa continued: “Last week, during the annual lekgotla of our Basic Education Sector, I emphasized that future-proofing our education system means recognizing that the first fully digital generation is already in high school.”
The upcoming generation, Generation Beta, will grow up immersed in technology and AI and will enter a job market that differs significantly from today’s.
Therefore, building a strong AI talent pool is vital.
The incorporation of AI into educational curricula will be essential, along with targeted training programs and robust partnerships between academia and industry.
In its commitment to digital transformation for sustainable development, Microsoft has invested in AI skills training for SMMEs.
The company has allocated significant resources to assist black-owned businesses that are at the forefront of Fourth Industrial Revolution technologies.
Microsoft’s initiative to train one million South Africans in AI skills, machine learning, and cybersecurity by 2026 is a promising endeavor.
“For a nation like ours, facing a high youth unemployment rate, this extensive training will not only prepare young people for roles in high-tech industries,” President Ramaphosa mentioned.
“It will also encourage self-employment.
“This will contribute to a new wave of tech and software entrepreneurs who will drive innovation and advanced solutions that stimulate economic growth and enhance our country’s competitiveness.”
President Ramaphosa noted that Microsoft’s commitment to assist South Africa’s transition to a high-tech economy comes at a pivotal moment, as the country leads the G20.
Leveraging AI for sustainable development is among the priorities of our G20 Presidency.
The Artificial Intelligence, Data Governance, and Innovation for Sustainable Development Task Force will lead this initiative.
“We look forward to engaging with the B20 and other industry partners to support the task force’s objectives.
“We hope that our G20 Presidency will produce tangible outcomes, expanding the global digital economy and leveling the AI playing field for the benefit of all,” affirmed President Ramaphosa.
“Our nation and continent possess immense potential, fueled by the talents and energies of our people.
“It is up to all of us, in partnership, to ensure that AI and its associated technologies do not widen the technological divide, but rather bridge it.
“As we prepare to host the G20 Summit later this year, we are dedicated to ensuring that the adoption of new technologies propels Africa’s growth, industrialization, and advancement.
“We are eager to collaborate with Microsoft to turn this vision into reality.”
