As of April 23rd this year, Microsoft is kick-starting an initiative to invest almost half a billion rand into growing several sustainable, independent and majority black-owned software companies in South Africa over the next seven years.
It’s part of our greater broad-based black economic empowerment strategy. And we’re making this bold move for a number of reasons.
Firstly, it’s the right thing to do. We’re proudly South African, and are fully committed to this country and its people. The country faces a significant shortage of technology skills, as well as chronic unemployment. This investment will tackle both by building a sustainable, black-owned technology ecosystem.
Secondly, helping all South Africans to realise their full potential is a defining value for our company. We’ve been in South Africa since 1992, and have seen how technology can change people’s lives for the better. We’ve also helped bring social and economic opportunity to many through technology. This deal is our biggest contribution to that cause.
Thirdly, we’re committed to growing South Africa’s software industry. Through a range of programmes and partnerships, we already help entrepreneurs, innovators and developers to pursue their ideas and achieve their ambitions. Through this deal, we’re aiming to create a new model for entrepreneurship, and set a new benchmark for developing the next generation of talent in the industry.
And lastly, it makes good business sense. While development is key, we are balancing this with the commercial opportunities for all involved. The companies that grow out of this investment, and the software that they develop, will help Microsoft and its partners reach new markets. The investment should galvanise the local software economy and leave a legacy for other entrepreneurs.
This deal will potentially raise our BBBEE rating from Level 4 to Level 2. But the impetus for Microsoft is to be more locally relevant, and locally responsible in terms of social investment and BEE. Relevance and responsibility are critical aspects of being a local, committed corporate citizen, and this investment underlines our intention in a big way.
