Microsoft South Africa is committing R1.3 billion ($70 million) to the South African economy under a 10-year agreement with the Department of Trade, Industry, and Competition (DTIC). According to the tech giant, this investment aims to support the growth of small, micro, and medium-sized enterprises (SMMEs), generate local employment opportunities, and gear the nation up for AI transformation. The initiative is anticipated to enhance the country’s AI sector, which is expected to reach a value of US$0.90 billion in 2024 and grow at an annual rate of 28.22% (CAGR 2024-2030), culminating in a market volume of US$4.00 billion by 2030.
Microsoft South Africa is committing R1.3 billion ($70 million) to the South African economy through a 10-year agreement with the Department of Trade, Industry, and Competition (DTIC). This investment, as stated by the software company, is directed at developing small, micro, and medium-sized enterprises (SMMEs), generating local jobs, and preparing the nation for AI transformation. The initiative is anticipated to enhance the country’s AI sector, which is projected to reach US$0.90 billion in 2024 and grow at an annual rate (CAGR 2024-2030) of 28.22%, leading to a market volume of US$4.00 billion by 2030.
South Africa has recently intensified its efforts to adopt artificial intelligence to foster economic growth, enhance efficiency, and tackle societal challenges.
In April 2024, the country introduced a draft of its national AI plan. This initiative follows the establishment of the AI Institute of South Africa (AIISA) and the Centre for Artificial Intelligence Research (CAIR) several years ago.
Kalane Rampai, the Managing Director of Microsoft South Africa, emphasized the significance of AI, noting that the technology is transforming how people work, which requires individuals to acquire the necessary skills to stay relevant.
“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,” he added.
Rampai emphasized that the investment will create a platform for the growth of Small and Medium-Sized Enterprises (SMMEs) through advancements in technology, digital transformation, and new market opportunities.
SMMEs are recognized as the backbone of South Africa’s economy, contributing nearly 40% to the country’s gross domestic product (GDP) and employing about half of the workforce.
Despite the sector’s significance, reports reveal that businesses encounter funding gaps. Most business owners and entrepreneurs depend on personal savings or loans.
On May 3, 2024, South Africa inaugurated the Defence Artificial Intelligence Research Unit (DAIRU) as a military-focused AI hub at the Military Academy in Saldanha, Western Cape. This initiative aims to leverage AI’s potential in the country’s defence sector and promote national development and security.
Source: https://www.techinafrica.com/microsoft-commits-70-million-to-boost-employment-and-ai-development-in-south-africa/