The move aims to accelerate the country’s ambition to build a globally competitive AI-driven economy.

This new investment builds on Microsoft’s prior USD 1.08 billion (ZAR 20.4 billion) injection over the past three years, which established South Africa’s first enterprise-grade data centers in Johannesburg and Cape Town.

The initiative is designed to help businesses—from startups to large corporations and government institutions—leverage advanced digital tools to enhance productivity, optimize services, and drive innovation.

“Microsoft’s continued presence and investment in South Africa sends a strong message of confidence in our economy,” said President Cyril Ramaphosa.

“These commitments are a testament to our potential as a destination for sustainable business growth.”

As part of its broader digital transformation agenda, Microsoft also announced an expansion of its AI skilling programme.

Over the next 12 months, the company will fund certification exams for 50,000 young people, enabling them to acquire in-demand digital skills such as AI, data science, cybersecurity, and cloud architecture.

The goal is to bolster South Africa’s tech talent pool and prepare the workforce for future-oriented roles.

“Microsoft has been a trusted partner in South Africa for more than three decades,” said Brad Smith, Microsoft Vice Chair and President. “This investment reflects our long-term commitment to empowering local communities and enabling inclusive economic growth through technology.”

The initiative aligns with Microsoft’s earlier pledge to equip one million South Africans with digital and AI skills by 2026, addressing critical skills gaps identified by the World Economic Forum as a barrier to digital transformation in the Global South.

Last year alone, Microsoft’s Skills for Jobs programme trained more than 150,000 individuals in South Africa, certified 95,000, and facilitated employment opportunities for 1,800 people.

The company has also donated over USD 100 million worth of software and resources to educational institutions, nonprofits, public libraries, and museums across the country.

Microsoft’s AI systems in South Africa will operate under its AI Access Principles, ensuring responsible and inclusive deployment of AI technologies.

The announcement comes as Microsoft marks its 50th anniversary, a milestone that also serves as the midpoint in its global sustainability journey.

Since 2020, the company has pursued ambitious goals to become carbon negative, water positive, and achieve zero waste by 2030.