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Microsoft Invests Nearly $300M in South Africa to Expand AI, Digital Skills

by Felix Tih
06/03/2025
in Finance
Reading Time: 2 mins read

JOHANNESBURG (BG) — Microsoft has announced an additional ZAR 5.4 billion ($280 million) investment in South Africa, expanding its Artificial Intelligence (AI) and cloud infrastructure while launching a new youth certification program for high-demand digital skills.

This latest commitment, unveiled Thursday in Johannesburg, brings Microsoft’s total investment in the country to ZAR 25.8 billion ($1.34 billion) over the past three years.

The company’s ongoing efforts aim to strengthen South Africa’s position as a globally competitive AI economy.

Speaking at the announcement event, President Cyril Ramaphosa praised Microsoft’s long-standing presence in South Africa.

“Microsoft is an American company with an African heart,” he said. “The company’s commitment to Africa, and to South Africa, has been solid, dependable and impressive.”

“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 South African President added.

Ramaphosa said Microsoft’s investments show lasting confidence. 

The ZAR 5.4 billion ($280 million) investment will support the expansion of Microsoft’s cloud and AI infrastructure, helping businesses, government entities, and startups access cutting-edge digital solutions.

Microsoft will cover the exam fees for 50,000 young South Africans to earn certifications in AI, data science, cybersecurity, and cloud computing over the next year.

“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,” he added.

Microsoft’s total ZAR 25.8 billion ($1.34 billion) investment includes the development of South Africa’s first enterprise-grade datacenters, launched in Johannesburg and Cape Town, as well as previous commitments to train one million South Africans in AI and digital skills by 2026.

Ramaphosa emphasized the role of AI in economic growth and job creation, particularly for young people.

“The AI revolution is a catalyst for job creation, particularly for young people,” he said. “Microsoft’s plans to train one million South Africans in AI skills, machine learning and cybersecurity by 2026 is immensely encouraging.”

As South Africa prepares to host the G20 Summit, where AI for sustainable development is a key priority, Microsoft’s investment aligns with national efforts to drive digital transformation.

“we are committed to ensuring that the adoption of new technologies catalyses Africa’s growth, industrialisation and progress,” Ramaphosa said. “We are excited about partnering with Microsoft to make this a reality.”

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