President Cyril Ramaphosa has welcomed Microsoft’s announcement of a R5.4 billion investment in South Africa, which is set to boost the country’s access to cutting-edge cloud and AI solutions.

This announcement was made on Thursday, at the Microsoft South Africa head office in Johannesburg.

The investment aims to enhance operational efficiency and productivity across various sectors, marking a significant step forward in South Africa’s digital transformation.

Ramaphosa praised Microsoft’s longstanding commitment to South Africa, highlighting its presence in the country since 1992.

''Microsoft is an American company with an African heart,” said Ramaphosa, emphasising the company's dedication to the local market and its continuous support in shaping the digital landscape.

The president also underscored Microsoft’s ongoing efforts in empowering South Africans with skills for the digital economy, particularly through the National AI Skilling Initiative, which will provide AI training for public servants.

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“We are particularly excited about the launch of the National AI Skilling Initiative that will focus on providing AI skills training for public servants,” he said.

Additionally, he highlighted the signing of a Memorandum of Understanding (MOU) between Microsoft, the National School of Government, and the National Electronic Media Institute of South Africa to further these efforts.

Ramaphosa stressed that Microsoft’s continued expansion of data centres and cloud investments solidifies its position as a leader in cloud computing in South Africa.

These investments align with the South African government’s National Data and Cloud Policy, which aims to foster innovation and growth in the digital economy, he said.

Ramaphosa also drew attention to the company's notable achievement of Level 1 Broad-Based Black Economic Empowerment (B-BBEE) status, calling it a significant commitment to South Africa’s empowerment goals.

“Microsoft has demonstrated its commitment to addressing the historical imbalances of South Africa’s past and fostering an inclusive business environment,” Ramaphosa said.

In addition, he touched upon the transformative potential of AI, stressing its power to drive economic growth and job creation.

He explained that AI will play a pivotal role in future-proofing South Africa’s education system, ensuring the next generation is equipped for an AI-driven world.

Moreover, Ramaphosa emphasised the importance of integrating AI into educational curricula and fostering strong partnerships between academia and industry to build a robust talent pool.

Microsoft’s ambitious plan to train one million South Africans in AI, machine learning, and cybersecurity by 2026 is seen as a crucial step in addressing the country's high youth unemployment rate.

''For a country such as ours, with such a high youth unemployment rate, this comprehensive training will not only prepare young people for jobs in high-tech industries. It will also facilitate self-employment.

''It will contribute to a new generation of tech and software entrepreneurs that will bring innovation and high-tech solutions that support economic growth and enhance our country’s competitiveness,'' said Ramaphosa.

As South Africa hosts the G20 this year, Ramaphosa also highlighted the global focus on AI for sustainable development.

He stressed the importance of using AI to foster inclusive growth and ensure that no country is left behind in the digital transformation.

''We have high expectations that our G20 Presidency will result in tangible outcomes, both expanding the global digital economy and levelling the AI playing field for the benefit of all. Our country and continent has huge potential, driven by the talents and energies of our people.

“It is up to all of us, working in partnership, to ensure that AI and its associated technologies do not deepen the technology divide, but narrow it,” he said.

Ramaphosa expressed his excitement about South Africa’s collaboration with Microsoft to drive the country’s digital transformation and AI-driven economic growth.

“We are excited about partnering with Microsoft to make this a reality,” he said.

hope.ntanzi@iol.co.za

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