Microsoft South Africa and the Department of Trade, Industry, and Competition (DTIC) have reached a 10-year deal for Microsoft to invest R1.3 billion ($70 million) in the South African economy.
Microsoft states that the money will be used to support the growth of small, micro, and medium-sized businesses (SMMEs), generate employment locally, and get the nation ready for the AI revolution.
The country’s AI market is anticipated to reach US$0.90 billion in 2024 and increase at a 28.22% annual rate (CAGR 2024-2030) with a market volume of US$4.00 billion by 2030 thanks to the investment.
The DTIC reports that the money would be used for an enterprise development programme valued at R663 million ($34.6 million), with an emphasis on technology start-ups run by black South African entrepreneurs and the creation of novel solutions leveraging disruptive technologies.
A R160 million ($8.7 million) R&D effort would finance research programmes, while an R347 million ($18.9 million) skills development initiative will give young black South Africans intense training through certification courses and leadership.
Kalane Rampai, Microsoft South Africa MD, acknowledged the importance of AI, noting that technology is changing how people work, necessitating the need for people to have the necessary skills to remain relevant.
“We believe there is a massive opportunity for those willing to skill up on AI. At the same time, organisations that empower employees with AI tools and training will attract the best talent,” he added.
Recently, South Africa has stepped up its attempts to use AI to solve societal issues, boost productivity, and promote economic growth.
The nation presented a draft of its national AI plan in April 2024. This follows the establishment of the Centre for Artificial Intelligence Research (CAIR) and the AI Institute of South Africa (AIISA) a few years ago.
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