Microsoft vice chair and president, Brad Smith with President of the Republic of South Cyril Ramaphosa

"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,” President Cyril Ramaphosa said welcoming the announcement.

“The strategic investment announcements made by Microsoft today stands as further testimony to this enduring confidence."

Brad Smith, Microsoft's vice chair and president, stated that Microsoft had been a dedicated partner to South Africa for over 30 years.

“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."

Addressing the skills gap

According to the World Economic Forum, 60% of companies in the Global South identify critical skills gaps as key barriers to digital transformation by 2030.

To address this challenge, Microsoft has committed to skilling one million South Africans by 2026.

The company is now expanding this initiative by funding certification exams for 50,000 young people in high-demand digital skills over the next 12 months.

These Microsoft Certifications will cover areas such as AI, Data Science, Cybersecurity Analysis, and Cloud Solution Architecture.

Building on 30 years of investment

In 2024 alone, the company trained more than 150,000 people in digital and AI skills, with 95,000 becoming certified and 1,800 securing employment through Microsoft's Skills for Jobs programme.

Additionally, Microsoft has provided over $100m in donated and discounted software to South African educational institutions, nonprofit organisations, public libraries, and museums over the past year.

Microsoft believes South Africa can lead Africa's transition from being consumers to producers of AI technology. A recent UN report highlighted the urgent need for infrastructure investments and regulatory frameworks – specifically in connectivity and AI governance.

Sustainability commitments

The expanded AI infrastructure in South Africa will operate under its AI Access Principles, ensuring broad access to AI technology that serves the public good.

Microsoft used the opportunity to update on progress in its sustainability journey.

Since announcing goals to be carbon negative, water positive, and zero waste by 2030, the company has:

• Become one of the world's largest carbon-free energy buyers with a 34GW contracted renewable energy portfolio across 24 countries
• Developed 90 water replenishment projects in over 40 locations worldwide
• Exceeded its land protection goal by protecting over 64km² – more than 40% above its initial target

The company continues to address sustainability challenges as it grows its infrastructure globally and locally, reinforcing its commitment to South Africa's economic growth and digital future.