CASSAVA Technologies, the technology company established by Zimbabwean telecommunications tycoon Strive Masiyiwa, recently delivered a setback to President Emmerson Mnangagwa’s “Open for Business” slogan.
The declaration of their plan to construct Africa’s premier artificial intelligence facility in South Africa, collaborating with top AI chip manufacturer Nvidia, signifies a lost chance for Zimbabwe.
Fresh off his seizure of power in November 2017 through a military coup, Mnangagwa welcomed international attention, presenting Zimbabwe as the top choice for business opportunities.
In theory, this appeared as a brilliant strategic move aimed at attracting Foreign Direct Investment (FDI). Nonetheless, repeatedly, the government has sabotaged its efforts by implementing policies and procedures that discourage potential investors.
NVIDIA’s supercomputing systems, driven by graphics processing units—or GPUs (the key components in artificial intelligence)—will be installed in Cassava Technologies' data centers in South Africa starting as soon as June. The rollout aims to extend these capabilities to additional locations within the company including those in Egypt, Kenya, Morocco, and Nigeria.
This clearly shows that when it comes to AI development, South Africa is set to punch above its weight in the years ahead.
Speaking in Kigali, Rwanda, at the Inaugural Global AI Summit on Africa, Masiyiwa was blunt about his reasons for side-lining Zimbabwe and other African nations due to their less-than-stellar business environments.
Masiyiwa stressed the importance of African leaders fostering an environment conducive to investment.
"The importance of our leaders establishing an environment conducive to investments cannot be overstated. As someone like myself who steps up and ventures out to secure billions of dollars to purchase these chips, I am limited to areas that offer favorable conditions for investors," he stated.
He emphasized his statement with a serious caution: "We aren’t going to return and inform you that your investment climate isn’t effective. Instead, we simply move on. Therefore, it’s crucial for us to communicate. You must hear our concerns about what we believe is necessary to confidently secure the funds required to proceed.”
The Information and Communications Technology (ICT) Minister, Tatenda Mavetera, recognized the challenging task of fostering an attractive environment for businesses to thrive, especially within the ICT industry, which is crucial for drawing investments.
"Our ministry is focusing on several key areas: simplifying rules to accelerate technology infrastructure initiatives, encouraging research and development collaborations along with investments from the private sector, and developing robust digital environments supported by stable energy supplies, consistent connectivity, and a skilled workforce pipeline," Mavetera shared on X on Saturday.
She added: "More investor friendly policies in the ICT sector are essential and urgent. Let's deepen this dialogue.
"We are currently developing various policies such as those for ICT startups and venture capital, as well as fintech and cryptocurrency regulations. Additionally, we aim to introduce tax incentives within the ICT sector with the goal of establishing Zimbabwe as the upcoming technology center," Mavetera added in his writing.
Famously, Masiyiwa maneuvered through a challenging landscape in the 1990s to set up Econet Wireless and has acknowledged publicly that the late Vice President Joshua Nkomo supported him in establishing Econet.
Critics of Mnangagwa swiftly accused the Zanu-PF leader of making an enormous mistake.
Many view Masiyiwa's choice to set up the AI facility in South Africa as a self-inflicted setback, leaving Zimbabwe struggling in the realm of technology.
Provided by Syndigate Media Inc. ( Syndigate.info ).