Amazon Web Services (AWS), the cloud computing giant and a subsidiary of Amazon.com, has announced plans to invest up to ZAR 30.4 billion into its cloud infrastructure in South Africa by 2029. This investment is expected to contribute an estimated R68 billion to South Africa’s GDP and support more than 5,700 full-time equivalent jobs annually at South African businesses by 2029.
This announcement follows the release of a new economic impact study (EIS) that outlines AWS’s investment in its AWS Africa (Cape Town) Region since 2018 and projects the forecast of investment to construct, operate, and maintain its cloud infrastructure in South Africa. According to the EIS report, AWS estimates that it will invest R46 billion between 2018-2029.
The investment will support the growth of the digital economy in South Africa by enabling businesses to leverage cloud technologies to innovate and grow. It will also create new jobs in the country’s IT sector and stimulate economic growth.
“AWS had long been committed to South Africa, and this infrastructure investment adds to our ongoing local story, where one of our foundational capabilities – Amazon Elastic Compute Cloud (Amazon EC2) – was developed by engineers in Cape Town back in 2006,” said Amrote Abdella, General Manager, AWS Sub Saharan Africa. “This report illustrates our ongoing commitment to invest in South Africa and support demand for our world-class technology from customers here and around the world. The investment already has a ripple effect on numerous local businesses, and has helped establish training and skilling programs for the local workforce, supported community engagement through various initiatives, and created sustainability initiatives across the country.”
From 2018 through 2022, AWS has already invested R15.6 billion in the AWS Africa (Cape Town) Region, which includes all cash expenses directly attributable to the region, such as imports of highly specialized and proprietary equipment and software, and in-country spending. This investment has resulted in an estimated R12 billion in local GDP contributed by this AWS Region. Local spending includes capital expenditures on construction labor, materials, and services, as well as recurring operating expenditures on employee and contractor compensation, utility fees, and facilities costs.
AWS investment supports an estimated annual average of more than 5,700 FTE jobs at local vendors in the South African data center supply chain, including telecommunications, nonresidential construction, electricity generation, facilities maintenance, and data center operations. This investment has allowed AWS to make demonstrable differences and lasting impacts in communities around the world where it builds and operates its data centers.
AWS has been committed to supporting the digital literacy goals set out in South Africa’s “National Digital and Future Skills Strategy” through innovative workforce development programs. The company has worked with higher education institutions in South Africa, including Durban University of Technology, Stellenbosch University, and the University of Cape Town, to help prepare the country’s future workforce. Programs like AWS Academy, AWS Educate, and AWS re/Start help with job training across the country.
In South Africa, AWS launched its first operational solar project in 2022, which contributes renewable energy to the electricity grid.
