Google’s products and services contributed R118 billion to SA’s economy in 2023.
Tech giant Google has committed to help create 300 000 jobs in South Africa, through its ecosystem, by 2030.
This was announced yesterday in Johannesburg, at the official launch of its first Africa-based cloud region, which went live in January 2024.
At the event, Google announced an additional investment in its cloud region and skills development initiatives in SA.
The latest round of investment forms part of Google’s commitment to invest $1 billion over five years, to boost Africa’s digital transformation. Its investment was first announced in 2021.
Speaking at the media conference held on the side-lines of the launch, Tara Brady, president of Google Cloud Europe, Middle East and Africa, explained that the company − through its ecosystem of SMEs, channel partners and multiple business units − has prioritised playing a crucial role in direct and indirect job creation in SA.
“Google is projected to fuel over $90 billion in economic output and help create 300 000 jobs in SA by 2030. We are among the fastest-growing technological companies globally, with over 30% year-on-year growth.
“These are not just technology jobs; they also include business skills, etc. There’s a whole new wave of new jobs coming on the back of artificial intelligence (AI). People think they will lose their jobs as a result of AI’s efficiency, but we are investing in those new jobs of the future.
“I do believe that when there is a large number of organisations that are willing to invest in such [initiatives], this will enable SA to leapfrog many other countries,” notedBrady.
In a country with large-scale youth unemployment, public-private partnerships are crucial for job creation and economic growth, he emphasised.
In 2024, SA’s unemployment rate ended the year at 31.9% in the fourth quarter, a decrease from 32.1% in the third quarter, while the expanded unemployment rate remained at 41.9%, according to Stats SA.
Alex Okosi, MD of Google Sub-Saharan Africa, and Tara Brady, president of Google Cloud Europe, Middle East and Africa.
Google’s products and services in SA generated R118 billion in new revenue for local businesses, non-profits, publishers, creators and developers in 2023, according to the Google Economic Impact report.
This includes economic activity from services such as Google Search, Google Play, Android, YouTube, Google Cloud, Google Advertising and Google’s skills development initiatives.
The local Google Cloud region directly supports African businesses and multinational corporations operating on the African continent by providing access to technologies such as AI, machine learning, data analytics and security.
Google owns and operates 29 data centres in 11 regions around the world.
As the cloud market competition heats up in SA, hyperscalers are increasingly building facilities in the country and investing in skills development and job creation.
Early this month, US-based software giant Microsoft announced plans to invest R5.4 billion over the next two years, to expand its cloud and AI infrastructure in SA.
The company will also expand its digital skills initiative over the next 12 months, paying for 50 000 people to be Microsoft-certified in high-demand skills, including AI, data science, cyber security analysis and cloud solution architecture.
Last year, US-based multinational cloud computing giant Amazon Web Services (AWS) reaffirmed its commitment to SA, noting it will continue investing in infrastructure, skills development and job creation in the country.
In April 2020, AWS opened its infrastructure region in SA, launching during a time when the country saw increased activity in the data centre space.
Also speaking at the media briefing yesterday, Alex Okosi, MD of Google Sub-Saharan Africa, noted the opening of the company’s cloud region stimulated the growth of the local cloud ecosystem, with increased participation from partners, developers and SMEs.
“The opportunity that we are creating via the SME and skills development initiatives is going to play an important role in employing many people across SA. This is one of the many benefits of Google’s investment in South Africa.
“Of course, there is going to be, for instance, more cyber security jobs that are available, but there’s also going to be a whole bunch of other roles that Google’s investment is going to help create in the South African economy,” stated Okosi.
