South African President Cyril Ramaphosa will deliver the keynote address at the Microsoft South Africa investment announcement to be held in Johannesburg on March 6. According to the Presidency, the investment is expected to strengthen South Africa’s position as a leading hub for artificial intelligence (AI) on the African continent.
The announcement comes in preparation for the South Africa Investment Conference scheduled for later this month. South Africa has secured R1.14 trillion in investment commitments across sectors including mining, manufacturing, agriculture, energy and the digital economy since the conference began in 2018.
Microsoft’s investment aligns with the government’s broader goals of inclusive economic growth and job creation in partnership with the private sector. It also supports South Africa’s G20 agenda on AI and innovation for sustainable development.
The announcement comes amid ongoing debate over South Africa’s black economic empowerment (BEE) policies, particularly equity-equivalent investments. While some multinational tech firms, including Microsoft, have opted for such investments over direct ownership transfers, South Africa’s telecommunications sector requires at least 30% of ownership to be held by black people or historically disadvantaged groups. This requirement has drawn criticism, particularly from Elon Musk’s Starlink, and is currently under government scrutiny.
The investment decision also comes against a backdrop of changing geopolitical dynamics. Relations between South Africa and the United States have been strained since Donald Trump returned to the White House. The US has already cut significant aid to South Africa, and concerns are growing about the country’s continued access to trade benefits under the African Growth and Opportunity Act (AGOA).
Microsoft’s investment is expected to play a significant role in South Africa’s technological and economic landscape as global interest in artificial intelligence and digital transformation grows.