Software giant Microsoft has committed an initial $70 million as part of its 4Afrika initiative, which aims to upskill 200 000 Africans in IT fields, and get a million small and medium businesses online in the next three years.
In conjunction with partners, Microsoft's 4Afrika seeks to help drive economic growth across Africa and represents a "massive" investment by the US-based company. Africa is home to a billion people and has a combined gross domestic product of $1.5 trillion - just less than Brazil.
Some 16 of 30 of the world's fastest growing economies are in Africa, and the combined economic growth of the continent is projected to be around 5.25% between 2012 and 2013. Microsoft has been present on the continent for 20 years and operates in 14 countries.
Microsoft SA MD Mteto Nyati says the group has made a commitment of $70 million to the initiative. He says the "beauty of partnerships" is that the contribution multiplies, but contributions do not just need to be monetary, as they could also involve sharing intellectual property.
Building blocks
Nyati explains that 4Afrika builds on its R500 million equity equivalency plan, which was seen as a groundbreaking way of adhering to empowerment principles in SA, without selling a stake. Microsoft SA invested in six black-owned companies and provided business assistance to aid them to grow.
Of the six, one has fallen out due to an internal shareholder dispute, says Nyati. Of the others, some have expanded into the Middle East and Africa, and offerings from others are being embedded into Microsoft products, he adds.
Nyati says the equity equivalency deal proved that Microsoft can aid companies to grow. As part of 4Afrika, it plans to incubate 200 technology start-ups a year in SA, and support 100 000 small and medium companies by providing access to business process software and getting them online, he explains.
Microsoft also seeks to skill and train 3 000 unemployed graduates and, through its Application Factory, train people so they can build 700 Africa-focused apps a year. Nyati says the 200 technology start-ups should collectively hire around 1 800 people.
"We believe there has never been a better time to invest in Africa and that access to technology - particularly cloud services and smart devices - can and will serve as a great accelerator for African competitiveness," said Jean-Philippe Courtois, president of Microsoft International.
Share