Telecommunications giant Vodafone on Tuesday signed a $1.5bn deal with Microsoft to catalyze the adoption of artificial intelligence and cloud services across Africa.
According to a statement, Vodafone will commit to a decade-long investment of $1.5bn in developing cloud solutions and customer-centric AI services, working in tandem with Microsoft.
Moreover, Microsoft will leverage Vodafone’s fixed and mobile connectivity services, amplifying the reach and impact of their collaborative efforts.
As part of the alliance, Microsoft will invest in Vodafone’s managed Internet of Things connectivity platform, slated to evolve into an independent entity by April 2024.
This move is anticipated to attract fresh partnerships and customers, fostering application growth and expanding the platform to interconnect an array of devices, vehicles, and machinery.
The British company currently provides services in 8 African countries including DR Congo, Egypt, Ethiopia, Kenya, Lesotho, Mozambique, South Africa, and Tanzania.
Vodafone does not have a direct equity presence in Nigeria, but it has a partnership with Globacom, a local operator, through a non-equity arrangement
According to the deal’s plans, the digital services generated by the new partnership will use the latest generative AI technology to provide a highly personalized and differentiated customer experience across multiple channels.
They will be built on unbiased and ethical privacy and security policies under Vodafone’s established framework for responsible AI.
The Chief Executive Officer of Vodafone Group, Margherita Della Valle, said, “Today, Vodafone has made a bold commitment to the digital future of Europe and Africa.
“This unique strategic partnership with Microsoft will accelerate the digital transformation of our business customers, tiny and medium-sized companies, and improve the quality of customer experience for consumers.”
The Chairman and CEO of Microsoft Satya Nadella, stated, “This new generation of AI will unlock massive new opportunities for every organization and every industry around the world.
“We are delighted that we will apply the latest cloud and AI technology together with Vodafone to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe, build new products and services, and accelerate the company’s transition to the cloud.”
The two companies said they have identified five key areas of collaboration which include Generative AI, Scaling IoT, Africa Digital Acceleration, Enterprise Growth, and Cloud Transformation.
Through African digital acceleration, Microsoft said it intends to help further scale M-Pesa, already the largest financial technology platform in Africa, by housing it on Azure and enabling the launch of new cloud-native applications.
The companies are also launching a purpose-led program that seeks to enrich the lives of 100 million consumers and 1 million SMEs across the African continent.
