Ramaphosa doubles down on new digital IDs for South Africa

 ·7 Mar 2025

President Cyril Ramaphosa has doubled down on South Africa’s commitment to the creation of a digital identity system in South Africa.

Speaking at a press briefing with Microsoft and Vice Chair Brad Smith, Ramaphosa praised Microsoft for its additional R5 billion rand investment in South Africa, adding to the R20 billion already committed.

“Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy,” said Ramaphosa.

“The strategic investment announcements made by Microsoft today stand as further testimony to this enduring confidence.”

“They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure.”

The press briefing primarily focused on AI, with Smith highlighting the importance of growing the technology’s infrastructure, including data centres, in South Africa.

Ramaphosa said that the country hopes to be a major player in the field, with a particular focus on infrastructure for AI and cloud computing.

Smith was particularly impressed by the adoption of AI by the South African Revenue Service (SARS), with its commissioner Edward Kiesswetter in the audience.

He added that if all state-owned companies across the world used AI like SARS, then there would be far more data centres across the world.

Ramaphosa said that furthering the use of AI and other technology is essential for government departments.

The President said that several departments will follow SARS when it comes to technological innovation, highlighting the Department of Home Affairs’ commitment to using tech.

The President reiterated Home Affairs to create a digital identity system, which aims to create a digital system that citizens can use to access services.

The new digital system is a collaborative project between SARS, Home Affairs and the South African Reserve Bank.

Kieswetter previously said that, as per the new system, every citizen will get a single, unique digital identifier (UDI) and an accompanying card.

All transactions with the government could be attached to the UID to ensure that government branches know exactly how they are working.

Other parts of government

South African President Cyril Ramaphosa and Microsoft President Brad Smith

During the briefing with Smith, Ramaphosa added that South Africa sees the AI revolution as a job creator, which will be essential in tackling unemployment in the country.

He added that the use of AI is a central part of its Presidency of the G20, which it will prioritise with its meetings with government leaders across the world over the next year.

Microsoft said that its customers across various industries in South Africa, such as financial services, healthcare, retail, agriculture, mining, and the public sector, are already reaping the benefits of AI.

Adding to this, Ramaphosa said that the use of AI will be incorporated into several parts of the government and will impact the health system, grants, and the aforementioned Home Affairs.

Microsoft noted that it is crucial to develop a robust technology infrastructure and cultivate digital skills to ensure that South Africa transitions from a consumer to a producer of AI technology.

Microsoft thinks that South Africa has the opportunity to lead the way in enabling the continent to become a producer of AI technology.

With the infrastructure and skilled workforce in place, Microsoft said that the country can unlock new opportunities for economic growth and get a competitive advantage on the global stage.

On top of its infrastructure investment, Microsoft is also paying for the technical certification exams for 50,000 individuals, with a focus on developing digital skills that are in high demand.

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