Empowering SA’s SMMEs: AI to fuel sustainable growth

Microsoft SA’s commitment to enterprise and supplier development is reshaping how small, medium, and micro enterprises (SMMEs) leverage technology for growth. Through initiatives like Microsoft’s Emerging Partner Programme (EPP) and Equity Equivalent Investment Programme (EEIP), it supports SMMEs at every growth stage, helping them build sustainable and resilient businesses.

By empowering SMMEs in SA, Microsoft is enabling job creation, economic growth and long-term resilience for future generations. This focus is particularly critical as SA’s unemployment rate, though recently reduced, still leaves 8-million people without jobs. Supporting SMMEs can be a powerful catalyst for closing this gap and building a more inclusive economy.

Empowering SMMEs is about fostering resilience and innovation in SA communities, ensuring they become business leaders in their own right and continue to inspire future entrepreneurs.

Artificial intelligence (AI) is at the heart of this journey, with Microsoft offering tools that are transforming South African enterprises and laying the foundation for a thriving digital future. This aligns with the company’s vision of fostering a South African economy where AI empowers entrepreneurs and organisations of all sizes to compete, succeed and build a prosperous future.

Recent research shows that AI tools like Microsoft 365 Copilot can transform SMMEs, with a Forrester Consulting study indicating a potential return on investment of up to 353% over three years. With benefits such as a 20% reduction in operating costs and a 6% rise in net revenue, Microsoft Copilot is helping SMMEs achieve more, turning AI into a strategic advantage for businesses in competitive markets.

AI goes beyond only reducing mundane and routine tasks; it also drives higher productivity, boosts efficiency, and contributes to sustainable growth. 

For example, the high-impact Youth Employment Service (YES) private sector programme demonstrates how AI efficiencies can support economic inclusion.

With AI and automation tools, YES has significantly reduced report generation times from weeks to minutes, allowing each programme funder to receive timely, detailed insights into programme performance. This streamlined process enables YES to focus more effectively on its core mission: equipping young South Africans with essential job skills.

By optimising operations, YES not only accelerates youth employment efforts but also contributes to building a resilient, inclusive economy.

AI goes beyond operational efficiencies, offering meaningful social and environmental benefits. Smaller enterprises are increasingly leveraging AI to drive positive societal change, demonstrating that technology can be a powerful force for inclusive growth.

For example, local startup Lelapa AI uses AI to preserve SA’s indigenous languages, building language models in isiXhosa and isiZulu. These efforts ensure that African languages maintain a strong digital presence, reflecting Microsoft’s commitment to cultural preservation alongside innovation.

AI’s impact also extends to environmental sustainability. Conservation efforts by organisations such as Peace Parks Foundation use AI for wildlife protection, using image recognition to monitor endangered species and prevent poaching. These projects show how AI can help address pressing social and environmental challenges while respecting SA’s rich cultural heritage.

Projects such as YES, Lelapa AI, and the Peace Parks Foundation show the power of AI in fostering economic, social, and environmental resilience — setting a strong example for future leaders. As more South African businesses and communities adopt AI, Microsoft is helping to build a future where technology fuels sustainable growth, creating lasting value and opportunity for generations to come.

Microsoft’s vision is for a South African economy where AI empowers every entrepreneur to compete, succeed and contribute to a prosperous future. Through initiatives such as the EPP and EEIP, it’s supporting SMMEs across all stages of growth, helping them build sustainable, resilient businesses.

For more information on how you can harness the power of AI to boost your SMME’s business operations, click here.

• About the author: Lillian Barnard is president of Microsoft Africa.

This article was sponsored by Microsoft SA.