Microsoft’s Vice Chair and President, Brad Smith, was in Johannesburg yesterday, (6 March) to announce an expanded investment plan, with Microsoft to spend an additional ZAR 5.4bn ($297 Million) within the next two years.
This additional investment will be utilised in the expansion of the Microsoft cloud and AI infrastructure, that will see the first enterprise-grade datacentres being built in Johannesburg and Cape Town in South Africa. These developments are aimed at meeting the growing demand for Azure services in the Southern African region.
According to Smith, “For more than 30 years, Microsoft has been a committed partner to South Africa,”. “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.”
Customers across various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already reaping the benefits of Microsoft cloud and AI technologies.
Building AI Potential Through Strengthening Digital and AI skills
According to the World Economic Forum, 60 percent of companies in the Global South identify a critical skills gap as a key barrier to business digitally transforming by 2030. Addressing this gap is essential for fostering economic growth and innovation.
Microsoft had earlier in 2025, committed to skilling one million South Africans by 2026, equipping companies, government and youth with the knowledge and tools to create AI solutions to address local challenges with homegrown solutions, while contributing to the nation’s AI workforce and ecosystem.
In Addition to the upskilling program, Microsoft announced that it would expand its digital skills initiative over the next 12 months by paying for 50,000 people to be “Microsoft Certified” in high-demand skills like AI, Data Science, Cybersecurity Analysis and Cloud Solution Architecture.
By combining skills training with recognised certifications, Microsoft has committed itself to create a future-ready workforce for South Africa in a new digital era.
Future Proofing South Africa For Growth
Brad Smith, painted a clear picture of how nations had benefitted by the embracing of new technologies and the skilling of labour, that created winners and losers in the previous technological revolutions.
Smith said that “Most things in the world are single purpose tools, a smoke detector, a lawnmower. They do one thing very, very well. But over the course of history, there are certain technologies that redefine almost every sector of the economy”.
“If you look at history, we’ve really lived through three industrial revolutions and they were each driven by these general purpose technologies” Smith contends, “First, it was iron working in the United Kingdom, and then it was electricity and machine tools where the United States overtook the United Kingdom by putting these technologies to work more broadly than any other country”. “And then there’s the third industrial revolution, in the last 50-years, driven by computer chips and software.
Smith told a vivid story of the need to train and educate people in these new technology advances, and also of the need to develop the right business models and economic structures and infrastructure to support its development.
If Africa and South Africa are to benefit by the new fourth industrial revolution of AI and cloud computing, it will need to ensure that there are sufficient skills available for that to happen and that the right infrastructure is place to facilitate its development.
Worth a Listen – Here is the whole speech by Brad Smith: LISTEN HERE
Rapid Development of Skills Base
In 2024 alone, more than 150,000 people were trained in digital and AI skills, 95,000 certified and 1,800 secured employment opportunities through Microsoft’s Skills for Jobs programme, thereby addressing ICT skills gaps, preparing them for high-demand roles, and paving the way for their future success in the AI economy. Additionally, Microsoft has a longstanding commitment of providing donated and discounted software to South African educational institutions, nonprofit organisations, public libraries, and museums to enable equitable access to technology, educational tools and digital skills. Over the past year, that commitment exceeded $100 million in South Africa.
Microsoft says that “These are not just investments and programmes; they are an integral part of Microsoft’s long-term commitment to South Africa and pathways to a more inclusive, sustainable economy.
Enabling Africa to become a producer of AI technology, not just a consumer
The development of robust technology infrastructure and the cultivation of digital skills are paramount in transitioning from a consumer to a producer of AI technology.
More broadly, Microsoft believes that South Africa has an opportunity to lead the way in enabling Africa to become a producer of AI technology, not just a consumer. According to a recent United Nations report, urgent infrastructure investments and regulatory frameworks are vital – specifically, investments in connectivity and AI governance frameworks.
By investing in cutting-edge infrastructure and fostering a skilled workforce, South Africa and Africa can unlock new opportunities for innovation, enterprise development, economic growth, and competitive advantage on the global stage.
Ramaposa Positive About Growth
President Ramaposa was in a jovial mood at the announcement ceremony last night and jokingly told the audience that he loved AI as he had learned from a colleague, how AI had made him look more handsome.
President Ramaposa also said that “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 strategic investment announcements made by Microsoft today stands as further testimony to this enduring confidence”.
