This partnership with the Department of Trade, Industry, and Competition (DTIC) aims to fuel innovation, create jobs, and prepare the country for the future of artificial intelligence (AI).

A significant portion of the investment, $34.6 million, will be directed towards an enterprise development program. This initiative prioritizes Black-owned tech startups and fosters disruptive technologies.

“The Fund will assist Black South Africans in harnessing the power of technology to be more competitive and expand their businesses,” said Ebrahim Patel, Minister of Trade, Industry and Competition.

The investment also includes a $18.9 million skills development program. This initiative will provide young Black South Africans with intensive training and leadership development opportunities to prepare them for the AI-driven workforce.

“We believe there’s a tremendous opportunity for those who acquire AI skills,” said Kalane Rampai, Microsoft SA MD. “Organizations that empower their employees with AI tools will attract top talent.”

An additional R160 million (US$8.7 million) will be allocated to research and development programs to further propel South Africa’s AI advancements.

This investment aligns with South Africa’s recent efforts to embrace AI. The country unveiled a draft national AI plan in April 2024, following the establishment of the AI Institute of South Africa (AIISA) and the Centre for Artificial Intelligence Research (CAIR).

“The digital revolution demands a skilled workforce,” said Rampai. “Microsoft’s investment aims to empower South Africans and propel the country’s SMMEs, the backbone of the economy, through technology and digital transformation.”

SMMEs contribute nearly 40% of South Africa’s GDP and employ roughly half of the workforce. However, many struggle to secure funding, often relying on personal savings or loans.

Microsoft’s investment offers a much-needed boost to South Africa’s burgeoning tech sector and its ambitions to become a leader in AI development.