By Bonface Orucho
Microsoft’s latest pledge to invest an additional ZAR 5.4 billion (nearly US$300 million) in South Africa’s cloud and AI infrastructure by 2027 underscores rising investor confidence in Africa’s AI landscape.
According to Benson Mwanzia of the East African Tech Hub, a private technology skills center based in Nairobi, tech giants are increasingly acknowledging Africa’s tech potential.
“Several factors make global giants see Africa as a market that has a lot of potential for growth… Africa’s growing population is tech-savvy, meaning the market for different technologies created by these companies is readily available here,” he explained in a telephone interview.
“But even more important is the innovativeness and creativity of African talent. These companies have realised they can obtain some of the most unique innovations from the continent, some of which have never been created anywhere else,” he added.
Microsoft has actively invested in a number of key locations on the continent, in Nairobi and Lagos as well as South Africa, through the establishment of AI-supportive infrastructure such as data centers and skills development.
Vice Chair and President Brad Smith said at a recent event in Johannesburg that the world’s biggest software maker is “paying so that fifty thousand people here can go get the additional courses and take the certification exams to get what we call a Microsoft certification.”
The company has a plan to spend US$80 billion to develop data centers in the 2025 financial year. A January 2025 report by Microsoft revealed the tech giant was also planning to train 1 million South Africans in AI and cybersecurity by 2026.
The company last year announced plans to build a data center campus in Kosmosdal area of the city, to the south of Pretoria in addition to its centers in Cape Town and Johannesburg.
The latest investment commitment in South Africa comes less than a month after the company committed to provide Artificial Intelligence (AI) training for one million Nigerians in the next two years.
Yet, it is not just Microsoft that is increasing its AI investments on the continent by establishing supportive infrastructure such as data centers and rolling out skilling programmes targeting Africans.
Last year, Google’s Africa Startups Accelerator Africa program, a three-month accelerator program for Seed to Series black-led technology startups based in South Africa, stressed its interest in supporting African startups leveraging artificial intelligence (AI) and machine learning (ML).
“We’re excited to support the next generation of African AI pioneers, providing them with the resources and mentorship they need to build successful, impactful businesses,” Folarin Aiyegbusi, Head of Startups Ecosystem, Africa at Google in a press statement.
More recently, Google has worked with governments to facilitate training and infrastructure development in order to create an enabling environment for AI to thrive.
In February 2025, Nigeria announced a collaboration with Google to advance artificial intelligence (AI) and digital innovation in the country.
Through his official X account, Nigeria’s President Bola Tinubu revealed the upcoming partnership after meeting with Sundar Pichai, the CEO of Google and Alphabet, in Paris.
“We had discussions about the vast potential of AI in Nigeria and explored ways to collaborate in expanding AI skills, fostering innovation, and supporting the country’s rapidly growing tech ecosystem,” Pichai also noted in a separate post.
Beyond major global tech firms, funding for AI startups in Africa is also rising, with increasing investment in innovative ventures across the continent.
For instance, Moroccan AI company ToumAI in February 2025 secured more than US$1 million (€1 million) in pre-seed funding. This investment aims to enhance ToumAI’s mission of providing personalized, adaptive, and sustainable customer experience solutions globally.
The funding round was led by Launch Africa Ventures, with participation from Madica Ventures, Orange Ventures, Digital Africa, GO Ventures, and business angel Bruno Akpaka, alongside support from BPI France.
A 2024 report by GSMA shows Kenya is a key destination for AI funding. The report highlights that Kenya secured US$15 million in AI investments in 2023, surpassing Nigeria’s US$2.9 million, while South Africa remained the continental leader with US$123 million.
Kenya’s rapid ascent is attributed to its supportive government policies, thriving tech ecosystem, and high mobile penetration rate, which have created fertile ground for AI-driven innovations.
According to projections by the UN Economic Commission for Africa, if African businesses could capture 10% of the rapidly expanding global AI market—estimated to contribute US$15.7 trillion to the global economy by 2030—the continent’s economy could grow by an impressive US$1.5 trillion, approximately half of its current GDP.
bird story agency
Microsoft is set to invest an additional ZAR 5.4 billion (US$300 million) in South Africa's cloud and AI infrastructure by 2027, reflecting increased confidence in Africa's AI potential. The company is actively establishing AI-supportive infrastructure, with plans to train one million South Africans in AI and cybersecurity by 2026. Microsoft's efforts are part of a broader trend, as tech giants like Google also invest in AI development across Africa, supporting startups and government collaborations to facilitate AI growth.
Funding for African AI startups is on the rise, exemplified by Moroccan AI company ToumAI securing over US$1 million in pre-seed funding. Kenya has emerged as a key destination for AI funding, supported by government policies and a robust tech ecosystem, attracting US$15 million in investments in 2023. South Africa remains a continental leader with US$123 million in AI investments. The UN Economic Commission for Africa projects that capturing 10% of the global AI market could boost Africa's GDP by US$1.5 trillion, indicating significant economic growth potential.
Overall, Africa's AI landscape is rapidly evolving, fueled by investments and initiatives from global tech firms and supportive local ecosystems, promising substantial economic development in the coming years.
