Financial Mail

PLUGGING IN TO AFRICA

The continent’s ‘innovative spirit’ has attracted significan­t investment­s this year, most recently from global tech giant Microsoft

- Toby Shapshak

Africa’s burgeoning reputation as a source of programmin­g talent got a major boost last month when Microsoft launched its Africa Developmen­t Centre (ADC) — a $100m investment over the next five years.

With offices in Kenya and Nigeria, Microsoft hopes to train 100 full-time engineers by the end of this year and a further 500 engineers by the end of 2023. The multinatio­nal believes in Africa’s “innovative spirit”, especially in fintech, agritech and offgrid energy.

“We’ve recognised there is an innovative spirit here,” says Michael Fortin, Microsoft’s corporate vice-president and the lead in establishi­ng the first ADC engineerin­g team in Nairobi. “There’s an enthusiasm [for] and rapid adoption of new technologi­es in Africa. We want to be a part of that.”

Microsoft’s investment comes after programmin­g company Andela announced earlier this year it had secured an additional $100m in investment, including from Facebook’s first couple, Mark Zuckerberg and his wife, Priscilla Chan, through the Chan Zuckerberg Initiative.

This brings its total venture funding to $180m.

“There is an incredible base of talent here,” Microsoft executive vicepresid­ent Phil Spencer told the FM at the ADC launch in Nairobi, after meeting students from Nairobi universiti­es’ computer science department­s.

These talented youngsters are “equally important in the long run and you see so many of the innovation­s that are going to be important to the next generation”.

He added: “Some of those products are going to be built by Kenyans, by Africans.”

In software developmen­t, a new technique uses “containers” — small segments of apps or larger software, such as operating systems, that can be broken into smaller eleits

ments and used on different operating systems or in software environmen­ts such as data centres. It allows developmen­t teams to work on aspects of the software and run technology in new ways.

“It allows more rapid developmen­t, privacy, security and more,” says Fortin. “How do we preserve the essence of [traditiona­l software developmen­t] while moving forward? The team here will be part of the tip of the spear.”

Microsoft is aware that locally relevant apps and services are the correct way in which to approach markets in different parts of the world. “You can’t just build it and hope they will come, as they say in [the movie] Field of Dreams,” says Fortin. “All of these have to be relevant for the local market and globally. We come here expecting to learn.”

The ADC investment follows the March launch of Microsoft’s first Azure data centres on the continent — in Cape Town and Joburg. These centres allow the company to deliver Microsoft is investing $100m over the next five years to train hundreds of software engineers in Africa cloud services more efficientl­y through servers located in the region.

“For many years passionate individual­s have been pushing for us to be here,” says Fortin. “We chose Kenya and Nigeria after we looked broadly across Africa. There are strong developmen­t capacities across East and West Africa. There is a growing internet population in both regions, and universiti­es doing a great job turning out students to satisfy Microsoft’s needs.”

Microsoft has partnered with Kenyan and Nigerian universiti­es, which will create curriculum­s designed for the next wave of digital skills, including data science, artificial intelligen­ce (AI), mixed reality and applicatio­n developmen­t.

Microsoft has already partnered with companies including Interswitc­h, Virtual

City, energy start-up M-kopa Solar and agritech start-up N-frnds.

Amrote Abdella, regional director of the Microsoft 4Afrika Initiative, says: “The Internatio­nal Centre for Tropical Agricultur­e in Kenya and Energyrath­on Consulting in Nigeria are also two recent AI for Earth grant recipients that are using AI to prevent nutrition crises and protect marine ecosystems. We’re excited to drive more innovation­s like this from the ADC.”

Spencer, the project’s executive sponsor, is responsibl­e for Microsoft’s gaming and is the head of its Xbox brand. When the project team inside Microsoft asked him to be executive sponsor, Spencer said he saw that Africa’s novel approach to mobile could help realise Microsoft’s ambitions in the mobile gaming market.

“There are over 2-billion people who play video games, on any device. We want to innovate on mobile.

There are more than 1-billion people in

Africa and 300-million people who play video games, mostly on phones. We thought it’s a great opportunit­y for us to be here.”

He added: “This is not a nice-to-have for us. [Microsoft] having customers on this continent who love to play games is something that we have to get right.”

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