Microsoft South Africa has signed a R1.3-billion, 10-year agreement with the department of trade, industry & competition that commits the company to supporting small businesses and investing in youth skills development.
The agreement was signed at a ceremony at Microsoft’s headquarters in Johannesburg on Tuesday.
“We know that technology in South Africa is going to be a major driver of our success as a country because of the potential that it unlocks across all sectors, private and public,” said Microsoft South Africa MD Kalane Rampai.
“Technology is changing the way we work, where we work and how we work. So, we need to make sure our people have the requisite skills to adapt to the changes in the environment and remain competitive.”
According to Rampai, the allocation – estimated at R1.3-billion – is linked to Microsoft South Africa’s revenue over the next 10 years, and could end up being more depending on how well the company does in that period.
The department of trade, industry & competition has apportioned various amounts into different funds all centred on skills development, with a keen focus on next-generation digital skills such as machine learning and artificial intelligence.
Trade minister Ebrahim Patel said the commitment by Microsoft is the largest by any single entity in a partnership with the department.
According to Patel, about R660-million will be allocated to an enterprise development fund for small to medium enterprises that specialise in technology as well as those that are not tech-focused but use tech in their operations.
Enterprise development fund
A further R378-million will be allocated to a technology fund specifically for early-stage start-up development. The balance of the commitment by Microsoft will be split between a youth skills development fund and another fund focused on driving the local production of goods and services with the intention of exporting these to the rest of Africa and the world.
Microsoft South Africa will establish an enterprise development fund that will support SMEs in both the technology and non-technology sectors; as well as providing for advanced skills development in AI and other emerging technologies for young South Africans. Microsoft will also establish an R&D Council to support initiatives tied to the technology revolution in South Africa, and further partner with the Localisation Support Fund to provide dedicated technology resources to support the integration of advanced technologies into South Africa’s localisation and industrialisation programme. – © 2024 NewsCentral Media