Microsoft South Africa Creates Fund for Black-Owned Software Firms
The South African branch of Microsoft has announced the first group of black-owned software development companies it will be investing $69 million in over a seven year period in a broad-based black economic empowerment equity equivalance program (BBBEEE). The program is one method South Africa is using to fix the imbalances set in place by apartheid. The investment is the largest made by an IT company in the country.
According to Microsoft South Africa Managing Director Mteto Nyati, “The investment directly addresses key challenges facing the government and South Africa – namely creating jobs, developing enterprises, building the local software economy and developing scarce technology skills.”
The companies that have been awarded the first round of funding were picked out of an applicant pool of 683 and are as follows:
- Pietermaritzburg-based Chillisoft, who create public health software solutions that assists in alleviating service delivery bottlenecks;
- Cape Town-based Maxxor, which creates consumer applications for mobile phones;
- Security solutions specialists BUI from Johannesburg; and
- Durban-based Home Grown Business Integrations, who create cloud-based software that boosts government service delivery to rural people.
Nyati says that the award is not a one-off affair. Microsoft partnered with venture capitalist firm Vunani will allot four months to work with the chosen companies to take them from their current business model to the “next level.” By choosing companies in the health care, security, education and mobile services, Microsoft hopes to take the first steps towards job creation, business and economic development as well as entrepreneurship in the black community.
The companies that weren’t chosen still have an opportunity to work with Microsoft. The company is potentially interested in working with the applicants, possibly inviting them to join the Microsoft ISV program.
Category: Capital, Featured | Tags: BUI, Chillisoft, Entrepreneurship, Home Grown Business Integrations, Maxxor, Microsoft South Africa, Mteto Nyati, vunani
About the Author Sherri is a freelance writer that has a love of all things fun and geeky including gadgets, gaming, anime, and comics. When she isn't writing or out on the town living it up, she loves doing 10-12 hour marathon sessions on her Xbox 360 or one of her older consoles. It's not an addiction, it's a way of life!
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