A new initiative from Microsoft aims to give small, black-owned software development companies in South Africa a chance at becoming global players. Trade and Industry Deputy Minister Maria Ntuli and Microsoft South Africa Managing Director Mteto Nyati announced today an investment of approximately half a billion rand (the currency of South Africa) for the next seven years into the local software industry, from the Redmond company. Part of the software giant’s broad-based black economic empowerment (BBBEE) program, the R472-million (over $63-million) investment is bound to have deep repercussions on the local market.

Ntuli revealed that the growth of local businesses inherently implied the creation of additional jobs, as well as demand for more skilled workers. “This is not just another BBBEE deal that features familiar faces and just ticks the boxes,” Nyati added. “We’re looking to take existing software development companies and transform them into companies that compete in South Africa and around the world in areas like cloud computing. We want to create a new model for entrepreneurship and set a new benchmark for developing talent in the local software industry. We want BBBEE to be associated with real development, job creation, business development and skills enhancement.”

Black-owned software development companies in South Africa will be able to apply as the process debuts on 28 April, 2010, when Microsoft has planned the nationwide request for proposal to go live. External consultant KPMG will analyze participation requests and will select a number of companies for Microsoft to choose the finalists from in mid-2010. Ali Faramawy, Microsoft’s president for the Middle East and Africa, noted that both CEO Steve Ballmer and President of Microsoft International Jean-Philippe Courtois had expressed their support for the half-a-billion-rand investment.

“In the conversations with our global leadership team in Seattle, they made it clear that this was South Africa’s moment, and this was the time to step up our commitment to the country,” Faramawy noted. “The best way to do this was to ask the right questions within unique context of South Africa. So we asked what does the market need? What are the government’s priorities? And what is the greatest impact we can make? The result is the significant investment being made for economic development seen here today.”