Microsoft South Africa Invests $70M To Boost SMEs

Microsoft South Africa has announced an investment of $70 million in the South African economy, intended to promote economic growth and quickening the nation’s adoption of artificial intelligence (AI).

This is a part of an investment deal that the Department of Trade, Industry, and Competition (DTIC) and Microsoft SA signed. The investment aims to support small, micro, and medium-sized enterprises (SMMEs), create jobs locally, and get the country ready for the AI revolution. It is a part of a 10-year agreement with the Department of Trade, Industry, and Competition (DTIC).

A large percentage of the $34.6 million investment is intended to fund an enterprise development program. As stressed by the DTIC, the initiative’s main goals are to support technology businesses led by black South African entrepreneurs and to encourage innovation in disruptive technologies.

A skills development effort of $18.9 million is also planned, with the goal of giving young black South Africans extensive training via certification courses and leadership programs while an R&D initiative of $8.7 million will fund research programmes. This includes a $2.7 million investment, which will be spent in consultation with the Localisation Support Fund to introduce emerging technologies into industrialisation and localisation initiatives.

Commenting on the transformative potential of AI, Kalane Rampai, Microsoft SA MD, stated, “We believe there is a massive opportunity for those willing to skill up on AI. At the same time, organizations that empower employees with AI tools and training will attract the best talent.”

Microsoft’s investment is also in line with South Africa’s emerging AI initiatives, as demonstrated by the national AI plan that the nation unveiled in April 2024. This strategy plan demonstrates South Africa’s determined attempts to use AI’s revolutionary potential to boost economic development and solve societal issues. The company is also making a commitment to the defense industry; on May 3, 2024, the Defence Artificial Intelligence Research Unit (DAIRU) will be established. Presented as an AI hub with a military focus, DAIRU emphasizes on how important AI is to supporting growth and national security.

In order to help locals come up with innovative solutions to problems like youth unemployment, employability, inequality, sustainability, and global competitiveness, Microsoft South Africa further broke down the commitment’s components by stating that there will be programs aimed at enhancing ICT capability in SMEs and youth. The corporation says that among other areas, this will be done in machine learning, AI, cybersecurity, and data analytics.

Lillian Barnard, President for Microsoft Africa, summarized Microsoft’s investment, stating, “Consistent with our mission to empower every person and every organization on the planet to achieve more, this investment represents our commitment to empowering individuals and small businesses to be part of Africa’s digital economy and to drive job creation and growth that will benefit the entire region.”

In addition, the corporation stated that in order to establish sustainable enterprises in South Africa, the SME development program will explore entrepreneurial talents in addition to technical skills.

“Transformative technologies, such as cloud and AI, have the potential to solve some of South Africa’s most pressing challenges, while also unlocking opportunities to fuel inclusive, sustainable economic growth,” Barnard concluded.

Some 200 small, micro and medium enterprises (SMMEs) and over 2 000 individuals will be equipped with advanced artificial intelligence (AI) knowledge and other capabilities to prepare them for jobs of the future.