Amazon Web Services Reaffirms Commitment to South Africa with Major Investments and Skills Development Initiatives

Amazon Web Services (AWS), the global leader in cloud computing, has reaffirmed its long-term commitment to South Africa, pledging continued investment in infrastructure, skills development, and job creation across the country. This was highlighted during the AWS Summit 2024, held in Johannesburg, where Chris Erasmus, Country General Manager for AWS South Africa, emphasised Africa’s strategic importance to the company.

Celebrating two decades of operations on the continent, AWS plans to play an intentional role in driving economic upliftment in South Africa. Since launching its infrastructure region in the country in April 2020, AWS has been at the forefront of the burgeoning data center space, competing with other tech giants like Microsoft.

AWS’s impact on South Africa is evident in its substantial investments. From 2018 to 2029, the company expects to inject a total of R46 billion into its South African operations. This includes the R30.4 billion investment announced last year, earmarked for the construction, operation, and maintenance of cloud infrastructure in the region.

Erasmus highlighted that between 2018 and 2022, AWS invested R15.6 billion in the country, covering expenses related to the AWS Africa region, such as imports of proprietary equipment, software, and in-country spending. These investments have significantly boosted South Africa’s digital economy, fostering innovation and enhancing the capacity of local businesses and government entities.

Cape Town, often referred to as the “spiritual home” of AWS in Africa, has been pivotal in the company’s journey. The city is now home to three AWS availability zones offering over 160 services, with plans for further expansion. The AWS data centers have empowered thousands of developers, start-ups, enterprises, and educational institutions across Africa, enabling them to deliver cutting-edge applications to end-users.

Beyond infrastructure, AWS’s investments extend to various sectors of the South African economy, including telecommunications, construction, energy, and data center operations. The company’s deep roots in Cape Town are further underscored by the contribution of South African AWS engineer Chris Pinkham, who played a key role in developing the EC2 service in 2004.

AWS is also focused on nurturing the next generation of technology workers through extensive skills development programs. Initiatives like AWS Activate provide start-ups with free training, business support, and promotional credits for AWS services. More than 2,600 South African companies have benefited from over R340 million in AWS credits between 2018 and 2022.

In a bid to address South Africa’s pressing unemployment challenges, AWS launched a Skills Centre in the Western Cape, its first outside the United States. This center aims to equip participants with digital skills, helping bridge the gap between education and employment in the tech sector. AWS has trained over 100,000 South Africans since 2017, with more than 300,000 people across Sub-Saharan Africa benefiting from their training programs.

Recognising the barriers to tech adoption, AWS has committed to training 29 million people globally in digital skills by 2025, a goal it surpassed a year ahead of schedule, with 31 million people already trained. In South Africa, this effort is vital, as the country grapples with an unemployment rate of 32.9% and youth unemployment at a staggering 46.5%.

Looking ahead, AWS has pledged an additional R30.4 billion ($1.7 billion) towards the development of infrastructure and cloud services in Africa by 2029. This investment builds on the R15.6 billion already committed since AWS’s establishment in Cape Town in 2018. The company remains dedicated to driving sustainable development in Africa through renewable energy projects, responsible water usage, and supporting small and medium enterprises (SMEs).

AWS’s impact on Africa is further highlighted by its commitment to renewable energy. The 2022 launch of a 10-megawatt solar plant in the Northern Cape puts AWS ahead of its goal to power its operations with 100% renewable energy by 2030. The company has also made significant progress towards becoming water positive by 2030, with 41% of this target already achieved.

The AWS Summit 2024, which drew over 8,000 visitors, served as a testament to the company’s enduring commitment to Africa. With continued investments and a focus on skills development, AWS is poised to play a pivotal role in shaping the continent’s digital future, empowering businesses, and creating opportunities for the next generation of African innovators.