Microsoft Corporation has announced a US$297 million investment in South Africa to expand its cloud and artificial intelligence capabilities by 2027. This follows a previous investment of 20.4 billion rand and includes funding for training 50,000 young people in digital skills. The investment aims to bolster economic growth in a country facing stagnation, showcasing its potential as a favourable business environment.
Microsoft Corporation has announced plans to invest an additional US$297 million (5.4 billion rand) in South Africa by the conclusion of 2027. This investment aims to enhance the company’s cloud and artificial intelligence capabilities within the nation. Vice Chairman Brad Smith made this declaration during an event in Johannesburg, intending to contribute to an upcoming investment conference in South Africa.
The new investment adds to the existing 20.4 billion rand that Microsoft has already allocated to South Africa, which is anticipated to provide a significant boost to the local economy. Additionally, Microsoft intends to fund certification examinations in digital skills for 50,000 young individuals over the next year, further fostering innovation and workforce development in the region.
South Africa is actively seeking private investments to stimulate economic growth, which has languished at an average of less than one percent annually for over a decade. Microsoft was among the pioneering tech firms to establish data centers in South Africa, with its facilities located in Johannesburg and Cape Town. They also plan to expand their capacity in Centurion, Gauteng, while simultaneously committing to a $1 billion geothermal-powered data center in Kenya.
In response to this substantial investment, President Cyril Ramaphosa remarked, “Microsoft’s investment signals 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.” This statement reflects the government’s optimism about the enduring economic opportunities in the country.
In conclusion, Microsoft’s upcoming investment of US$297 million in South Africa signifies a substantial commitment to enhancing local technological infrastructure and addressing the demand for digital skill training. This investment not only underscores the potential of South Africa as a favourable business environment but also highlights the ongoing efforts to rejuvenate economic growth in the region.
Original Source: financialpost.com
