South Africa is seeking to shore up private investment in the country to accelerate economic growth
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Microsoft Corp. will invest an additional 5.4 billion rand (US$297 million) in South Africa by the end of 2027 to expand its cloud and artificial intelligence capacity in the country.
Vice chairman Brad Smith made the announcement at an event in Johannesburg on Thursday, ahead of an upcoming South African investment conference.
The pledge adds to 20.4 billion rand that Microsoft has already invested in Africa’s most industrialized nation, and should give the economy a welcome boost.
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The company said the money would pay for 50,000 young people’s certification exams in digital skills over the next 12 months to help “foster innovation, economic growth, and workforce development.”
South Africa is seeking to shore up private investment in the country to accelerate economic growth that has averaged less than one per cent annually for more than a decade.
The United States technology giant was one of the first big tech companies to build data centres in South Africa. Others, such as Amazon.com Inc. and Alphabet Inc.’s Google have followed.
Microsoft already has data centres in Johannesburg and Cape Town, and last year said it would also build new capacity in Centurion in South Africa’s province of Gauteng. In Kenya, Microsoft has agreed to build a US$1 billion geothermal-powered data centre.
“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,” President Cyril Ramaphosa said. “This company really has an African heart.”
—With assistance from Ana Monteiro.
Bloomberg.com
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