Microsoft Ties Up with SA Ministry to Invest $70million in SMEs

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Software giant, Microsoft has inked a R1.3 billion (roughly $70 million) agreement with the Department of Trade, Industry and Competition (DTIC) to support small and medium-sized enterprises (SMEs) and prepare the nation for the future of artificial intelligence (AI).

This Microsoft ten-year investment focuses on facilitating the development of black-owned businesses, both within the tech sector and beyond.

The investment aims to achieve several key goals including SMME Growth. Providing SMEs with the tools and resources they need, Microsoft hopes to accelerate their growth and open doors to new markets.

The ultimate goal is to help these businesses scale into net job creators, contributing to South Africa’s economic scale up.

Again, the initiative emphasizes Digital Transformation, providing SMEs with the technologies needed to thrive amidst digitalization. This includes access to cutting-edge solutions like machine learning and other forms of AI.

Recognizing the potential of AI, Microsoft wants to prepare South Africa for this uprising. The agreement includes skilling up young South Africans through intensive training programs and certifications, ensuring they possess the expertise to leverage AI effectively.

A portion of the investment will fund research and development projects focused on emerging technologies. This includes a R50 million commitment to integrate these advancements into industrialization and localization initiatives, in collaboration with the Localization Support Fund.

Both Microsoft and the DTIC understand the role of people in this journey. Kalane Rampai, MD of Microsoft SA, stressed the urgency of preparing South Africa for the AI revolution.

He emphasized the need for relevant skills and training to ensure the country remains competitive. Lillian Barnard, President of Microsoft Africa, spoke on the affirmation to empower individuals and businesses to actively participate in Africa’s digital economy.

The agreement prioritizes the development of black-owned SMEs. The DTIC noted how the investment will support black South Africans in non-tech sectors to leverage the power of technology, enabling innovation and expansion within their businesses.

This initiative also aims to bridge the gap for young people, providing them with training, certification, and job placement opportunities.