By Cyril Ramaphosa
Our country’s ambition to be a leading digital investment destination is being recognised by some of the world’s leading technology companies.
One of these is Google, which last week hosted its first-ever African Cloud Summit in Johannesburg.
The company chose South Africa to host one of its most important technology and enterprise events affirms Africa’s position as a core growth region for the global cloud ecosystem.
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At the Summit, Google announced a range of investments as part of its ‘Building for Africa’ initiative, which is designed “to support the greater adoption of cloud technologies and to equip local ecosystems for AI-driven innovation.”
Among these investments is a new Digital Exchange Port that will be built in the Eastern Cape, the first of four connectivity hubs on the continent that will ensure reliable cloud services.
Google has committed to skilling the local workforce. A R3 million digital innovation centre will be built at the South West Gauteng TVET College in Soweto. Later this month, applications will open for the 2026 South African cohort of the Google for Startups Accelerator, through which 15 local start-ups will be selected to receive AI training, mentorship, and funding.
Investor confidence in South Africa’s digital economy trajectory is growing.
Beyond the Google investment, in 2023, Amazon Web Services announced plans to invest R30.4 billion in its South African cloud infrastructure. Last year, Microsoft announced plans to invest R5.4 billion to develop local hyperscale cloud and AI infrastructure.
Just last week, Mastercard launched its Africa Cybersecurity Centre of Excellence. Starting with a phased rollout in South Africa and Nigeria, this initiative aims to strengthen cyber resilience and enable more secure digital growth across Africa.
Across the world, the digital economy is a catalyst for economic growth and job creation.
Google estimates that its Johannesburg Cloud Region can contribute approximately R1.7 trillion in additional gross economic output by 2030 and support approximately 315,000 jobs. Digital technologies are increasingly being adopted to overcome developmental challenges in education, healthcare, service delivery and climate change.
To build the economies and workplaces of the future, countries need to build digital infrastructure, including cloud computing and AI.
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South Africa currently houses a significant proportion of Africa’s large data centre capacity and is the continent’s largest cloud market. An increasing number of South African businesses are moving to cloud infrastructure and adopting machine learning and AI in their businesses.
Small, medium and micro enterprises particularly stand to benefit, with one study estimating that SMME adoption of cloud computing could potentially unlock more than R185 billion for the country’s economy by 2030.
Cloud enables small businesses to spend less on IT costs, improve their productivity and become more competitive. It can help them to expand market access and make use of e-commerce.
As these businesses grow, they create more employment and stimulate local economies. Through the likes of the SA SME Fund, the Black Business Supplier Development Programme and digital transformation partnerships with the private sector, we are working to make cloud and other technologies more affordable for small businesses.
Cloud infrastructure rollout can also improve government efficiency and service delivery. For example, cloud-based platforms in education can improve the availability of digital textbooks and other learning materials.
As we strive to position ourselves as a continental cloud and AI gateway, there is a need for ‘guardrails’ to prevent abuse and other risks. The digital economy must safeguard the rights and privacy of citizens, support environmental sustainability, and uphold our country’s sovereignty.
Our regulatory and policy environment must match innovation with safety. We must learn from other countries where vast amounts of sensitive public and private data have been held by private firms and outside national jurisdictions.
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In the digital age, sovereignty is measured not only by territorial borders. It is increasingly measured by a nation’s ability to secure its data, develop its own digital capabilities, and exercise meaningful control over the technologies on which its economy depends. That is why the government is investing in its own cloud infrastructure through institutions like the Council for Scientific and Industrial Research (CSIR).
As a developing economy, we have a unique opportunity to ‘leapfrog’ outdated and obsolete technologies to grow our economy and spur development. As we harness this potential, our focus must be on building domestic capability and not fostering dependency.
As we navigate these complexities, we must deepen collaboration across government, business, labour, industry, and civil society in pursuit of a digital future that is secure, inclusive, and leaves no-one behind.
