President Cyril Ramaphosa has described Microsoft South Africa’s investment of billions of Rands in artificial intelligence (AI) infrastructure as a momentous occasion which has come at the right time as the country hosts the Group of Twenty (G20) Summit, later this year.
“Microsoft’s commitment to supporting South Africa’s transition to a high-tech economy comes at a pivotal time, when South Africa is hosting the G20. Using AI for sustainable development is among the priorities of our G20 Presidency,” he said.
The President was delivering remarks at the Microsoft investment announcement in Bryanston, Johannesburg, on Thursday 6 March 2025.
Microsoft’s Vice Chair and President, Brad Smith, announced that Microsoft will invest R5.4 billion to expand its cloud and AI infrastructure in South Africa to meet the growing demand for Azure services in the SADC region.
This investment builds on the company’s R 20.4 billion investment over the past three years to establish the nation’s first enterprise-grade datacentres in Johannesburg and Cape Town.
The President said the Artificial Intelligence, Data Governance and Innovation for Sustainable Development Task Force will lead this stream, and he looked forward to engaging with the Business 20 (B20) and other industry stakeholders in support of the task force’s work.
The President lauded Microsoft for its continuous investments in South Africa, describing it as an “American company with an African heart”.
“The company’s commitment to Africa, and to South Africa, has been solid, dependable and impressive. Microsoft has had a constant presence in South Africa virtually since the dawn of our democracy, having opened up its first offices here in 1992.
“Since then, Microsoft has substantially expanded its local footprint, and now has thousands of partners and customers. The company’s commitment to skills and capacity building is impressive,” he said.
President Ramaphosa commended Microsoft’s plans to train one million South Africans in AI skills, machine learning and cybersecurity by 2026.
“Microsoft’s plans to train one million South Africans in AI skills, machine learning and cybersecurity by 2026 is immensely encouraging.
“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,” he said.
This 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 the country’s competitiveness.
The President outlined that South Africa is developing a National AI Policy that seeks to position the country as a leader in AI innovation, while at the same time, addressing its ethical, economic and societal implications.
“We must heed the words of the UN Secretary-General António Guterres that Artificial Intelligence without ‘guard-rails’ could further exacerbate inequalities and digital divides. The AI revolution is a catalyst for job creation, particularly for young people,” he said.
Last week, at the annual lekgotla of Basic Education Sector, the President said that future-proofing the country’s education system means coming to terms with the reality that the first fully digital generation is already in high school.
The next generation, Generation Beta, will be immersed in tech and AI from birth, and will enter a world of work that is light years away from what it is today.
“Building a robust AI talent pool is therefore critical. The application of AI will need to be integrated into educational curricula. Specialised training programmes will need to be offered and strong partnerships will need to be forged between academia and industry.
“As part of its commitment to digital transformation for sustainable development, Microsoft has invested in AI skills training for SMMEs. It has dedicated considerable resources into supporting black-owned companies pioneering 4IR technologies,” the President said.
President Ramaphosa further emphasised that he has high expectations that the county’s 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.
“As we look towards hosting the G20 Summit later this year, we are committed to ensuring that the adoption of new technologies catalyses Africa’s growth, industrialisation and progress. We are excited about partnering with Microsoft to make this a reality,” the President said.
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