Google South Africa has heralded a new era for the continent with the official launch of its R2.5 billion Google Cloud region in Johannesburg.

This significant infrastructure investment stands as a monumental stride in business and technology transformation, not only for South Africa but for the entire African continent.

The introduction of this cloud region positions South Africa among the 40 global regions and 121 zones in Google Cloud's expansive network, delivering cutting-edge services to over 200 countries and territories.

With the establishment of the cloud region, Africa gains access to the world's best data warehouse platform, a crucial asset for businesses seeking to leverage technology for growth and innovation.

Ferdinand Steenkamp, co-founder at Tregter, a locally founded data company based in Cape Town, said bringing Google Cloud services closer to local customers will enable them to innovate and securely deliver faster, more reliable experiences to their own customers.

“This will also contribute a cumulative $2.1bn to South Africa’s Gross Domestic Product (GDP) and support the creation of more than 40 000 jobs by 2030,” Steenkamp said.

“With Africa’s internet economy estimated to reach $180bn by 2025, this sector will account for 5.2% of the continent’s GDP. Google South Africa’s secure, high-performance, low-latency cloud service will put South Africa at the cutting edge of this technological revolution on the continent.”

Steenkamp also said this critical investment not only underscored Google’s commitment to increasing its footprint in Africa but also played a pivotal role in its broader pledge to invest $1bn to advance the continent's digital transformation.

He said such initiatives were essential for nurturing local tech talent and fortifying the startup ecosystem that aims to develop Africa's next generation of tech leaders.

Moreover, Google South Africa has been proactive in hosting various training programmes aimed at equipping learners and business owners with essential skills. Programmes like Cloud OnBoard, Cloud Hero, and Google Hustle Academy address key technology topics, including generative AI, machine learning, application and infrastructure modernisation, data analytics, and digital marketing.

The impact of the new cloud region also extends to enhancing existing support for African startups, exemplified by initiatives like the Black Founders Fund Africa and Google for Startups Accelerator Africa.

These programmes have collectively aided 106 startups across 17 African nations, facilitating over $263 million in funding and generating more than 2 800 direct jobs.

“Google South Africa will inevitably play a part in creating a more level playing field for African tech entrepreneurs, bringing substantial benefits to businesses beyond the tech sector, offering a launchpad for broader efforts to power the growth of Africa’s tech sector,” said Steenkamp.

Google Cloud provides IT infrastructure solutions that are scalable with the growth ambitions ofapproximately 3.5 million SMMEs in South Africa.

It eliminates the need for customers to own oroperate physical data centers and servers by themselves, which can be cost-prohibitive. This is particularly true of SMMEs, which often face financial and skill gaps.

According to Access Partnership, a global business management and public policy consultancy focused on technology, small businesses are likely to benefit even more from cloud adoption – the increase in cloud adoption by 2030 is estimated to lift productivity in that year by up to 3.5%.

More broadly, the Google Cloud technologies will provide SMMEs with greater access to technology and better position them to benefit from the potential productivity gains.

In a report on Wednesday, Access Partnership said the Google Cloud region in South Africa was estimated to contribute a cumulative $90.6bn (R 1.7 trillion) in higher gross economic output between 2025 and 2030 – equivalent to 24% of 2023 real GDP – and support 314 900 jobs by 2030.

The report said Google Cloud Region would lift gross economic output in South Africa through investments in the construction and ongoing operations of Google Cloud infrastructure; the revenue opportunities it creates for its partner ecosystem; and the spillover effects from increased economic output enabled by the productivity gains to businesses and the public sector that use Google Cloud services.

It said the accelerated adoption of Google’s Cloud services by businesses and the public sector will drive efficiency gains, cost savings, risk mitigation, and support greater scalability.

It also said Google’s Cloud services would also facilitate more efficient delivery of public services, and could also support broader benefits, including addressing challenges around sustainability, enabling innovation to deliver social impact, and supporting small business growth.

BUSINESS REPORT