President Cyril Ramaphosa will deliver the keynote address at the Microsoft South Africa investment announcement in Johannesburg on March 6.

The Presidency said the investment would enhance South Africa’s standing as a leading Artificial Intelligence hub on the continent.

It added that the announcement was a precursor to the South Africa Investment Conference, which would take place later in the month.

“Since the first Investment Conference in 2018, South Africa has attracted R1.14-trillion in investment commitments across a broad range of economic sectors, including mining, manufacturing, agriculture, energy and the digital economy.

“Microsoft South Africa’s investment lines up with government’s pursuit of inclusive economic growth and job creation in partnership with the private sector, and South Africa’s G20 objectives in Artificial Intelligence and Innovation for Sustainable Development,” the Presidency said.

The announcement comes amid debate on whether all sectors should be eligible to secure black economic empowerment credit through the use of equity equivalent investments, which have been used by various technology multinationals in preference to selling ownership positions.

Last year, for instance, Microsoft South Africa signed a R1.3-billion deal to developed black-owned enterprises in the tech and non-tech sectors.

By contrast, South Africa requires that 30% of the ownership of telecommunications companies be held by black people or historically disadvantaged groups, a requirement which has come under scrutiny after Elon Musk’s Starlink objected to the regulation.

The requirement is currently the subject of a review by government and the regulator.

In a recent report on growth in South Africa, the World Bank argued in favour of “generalising the use of the Equity Equivalence Investment Programs by the Department of Trade and Industry instead of the hard complex conditions associated with Black Eco­nomic Empowerment policies”.

It also comes amid tensions between South Africa and the US, following the return of President Donald Trump to the White House.

Already key aid has been cut to South Africa and there are concerns that the country could lose the trade benefits it currently enjoys under the African Growth and Opportunity Act.