Ramaphosa: Global tech giants are betting on South Africa’s digital future

President Cyril Ramaphosa says South Africa is drawing growing commitments from major global technology companies, a trend he says will boost economic growth, create jobs and accelerate the country’s cloud computing and artificial intelligence capabilities.

Who is investing and what they announced

In his weekly newsletter to the nation, Ramaphosa cited investments by Google, Amazon Web Services, Microsoft and Mastercard as evidence that South Africa is strengthening its position as Africa’s leading digital investment destination.

Ramaphosa highlighted Google’s decision to host its first African Cloud Summit in Johannesburg and said the event affirmed “Africa’s position as a core growth region for the global cloud ecosystem.” He described Google’s announcements under its “Building for Africa” initiative as intended “to support the greater adoption of cloud technologies and to equip local ecosystems for AI-driven innovation.”

Those projects include a Digital Exchange Port to be built in the Eastern Cape, described as the first of four planned connectivity hubs across the continent to improve reliable cloud services, and a R3 million digital innovation centre at South West Gauteng TVET College in Soweto focused on developing digital skills.

Ramaphosa said applications for the 2026 South African cohort of the Google for Startups Accelerator would open later this month, with 15 local start-ups set to receive artificial intelligence training, mentorship and funding.

The president also noted previous major technology commitments: he said Amazon Web Services announced plans in 2023 to invest R30.4 billion in local cloud infrastructure, and Microsoft last year committed R5.4 billion towards expanding hyperscale cloud and AI infrastructure.

Ramaphosa welcomed Mastercard’s launch of an Africa Cybersecurity Centre of Excellence, which he said will begin with a phased rollout in South Africa and Nigeria to strengthen cyber resilience and support secure digital growth.

Economic potential and benefits for smaller businesses

Ramaphosa said the digital economy has become a key driver of economic growth and employment. He cited Google’s estimate that its Johannesburg Cloud Region could contribute about R1.7 trillion in additional gross economic output by 2030 while supporting approximately 315,000 jobs.

He also said South Africa already houses a significant share of Africa’s large data centre capacity and remains the continent’s largest cloud market, with businesses increasingly adopting cloud infrastructure, machine learning and AI technologies.

On benefits for smaller firms, Ramaphosa noted that cloud computing can reduce IT costs, improve productivity, expand market access and increase competitiveness. He said one study estimates that wider adoption could unlock more than R185 billion for South Africa’s economy by 2030.

Regulation, sovereignty and government action

While outlining opportunities, Ramaphosa cautioned that South Africa must ensure innovation is matched by appropriate regulation as it positions itself as “a continental cloud and AI gateway.” He said, “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.”

Ramaphosa warned that government should learn from countries where “vast amounts of sensitive public and private data have been held by private firms and outside national jurisdictions.” He said,

“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.”

He added that government is investing in its own cloud infrastructure through institutions such as the Council for Scientific and Industrial Research to strengthen the country’s digital capabilities.

Path forward

Ramaphosa said South Africa has a “unique opportunity to ‘leapfrog’ outdated technologies to grow the economy and drive development,” while stressing the country’s focus should be on building domestic capability rather than fostering dependency. He called for deeper collaboration across government, business, labour, industry and civil society “in pursuit of a digital future that is secure, inclusive and leaves no-one behind.”