Amazon Invests R356 million to Incubate 100 Black South African ICT Entrepreneurs

Amazon Web Services (AWS) has partnered with the Department of Trade and Industry (DTI) to incubate 100 black South African ICT entrepreneurs. AWS announced plans to invest the sum of R356 million ($25 million) to train entrepreneurs under the Black Economic Empowerment (BEE) equity-equivalent investment programme. The agreement was reached at the just concluded South Africa Investment Conference.

Over the last five years, Amazon has contributed immensely in the South African ICT sector. It has built data centres in the country and will be launching its cloud computer from South Africa next year. It plans to launch an Amazon Web Services region for Africa in Cape Town by the first half of 2020.

This will help AWS subscribers from Africa to run their workloads and store data on the South Africa servers, thereby reducing latency. It will also offer access to advanced technologies such as Artificial Intelligence, Machine Learning, Internet of Things (IoT), Augmented and Virtual Realities, etc.

Lionel October, the Director-General of DTI says, “Amazon is building three data centres along the coast in the Western Cape, however, the black entrepreneurs’ programme will be across the country. They’ve met the first group of interns but it is open for all entrepreneurs to join.”

The fund will be an investment in the incubation of 100 black-owned South African startups within the Information Communication Technology industry. The 100 startups will be integrated into the AWS supply chain at the end of the incubation program.