By Lehlohonolo Lehana.
Microsoft president Brad Smith has announced during a visit to Johannesburg that the US software giant will invest R5.4-billion in new data centre infrastructure in South Africa.
This investment will build on Microsoft’s existing R20.4-billion infrastructure injection and the equipping of South Africans with artificial intelligence (AI) skills.
This is the biggest single investment announcement yet in President Cyril Ramaphosa’s SA investment drive.
Since the first South Africa Investment Conference in 2018, the country has attracted R1.14 trillion in investment commitments across a broad range of economic sectors.
Ramaphosa hailed Microsoft’s move as “a substantial investment in South Africa”, highlighting that “this is a US giant making this investment”.
He said Microsoft has successfully integrated the objectives of broad-based black economic empowerment into its business operations with respect to ownership, management control and skills development, and it has demonstrated its commitment to addressing the historical imbalances of South Africa’s past and to fostering an inclusive business environment.
He said Microsoft’s ongoing expansion of data centre and cloud investments cemented the company’s position as one of the leaders in cloud computing in South Africa.
Ramaphosa said that beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa was a vote of confidence in our country and in our economy.
Microsoft has been a valuable partner in South Africa’s digital transformation for over 30 years, said Smith.
“This massive investment by Microsoft will enhance South Africa’s standing as a leading Artificial Intelligence hub on the continent,” he said.
Smith said the South African Revenue Service (Sars) is one the best examples of state institutions leveraging tech and AI in SA.
He said the implementation of AI models had helped improve collection and the way in which citizens interact with Sars.
Expanding on Microsoft’s plans, Smith said the company had partnered with local startups using AI to create new platforms, such as Lelapa AI.
Lelapa AI is a multilingual language model that works with African languages and can be used for transcription and translation purposes.