Microsoft is reportedly considering shutting down its African Development Centre (ADC) in Lagos, according to industry insiders who spoke to The Guardian newspaper. While the exact reasons behind this decision remain unclear, sources speculate that Nigeria’s challenging economic conditions may have influenced it. The closure is said to affect only the West Africa operations in Nigeria, not the East Africa facility in Nairobi, Kenya.
Employees affected by the potential closure are expected to receive salary payments until June and will continue to be covered by health insurance. The ADC initiative, launched in 2019 with a $100 million investment, aimed to foster African innovation in areas such as fintech, agritech, and off-grid energy. The Lagos centre, established in 2022, initially employed over 120 engineers and grew to more than 200 staff members.
Microsoft had ambitious recruitment goals, aiming to hire 100 full-time engineers by the end of 2019 and 500 engineers by the end of 2023. The company viewed the ADC as a unique investment opportunity, enabling it to better understand local markets, develop tailored solutions, and make a global impact. Phil Spencer, Microsoft’s executive vice president, emphasized the importance of engaging with African partners, academia, governments, and developers to drive innovation and create positive change in key sectors.
Despite these aspirations, the potential closure of the Lagos ADC raises questions about Microsoft’s long-term commitment to the African continent. The decision comes amid concerns about Nigeria’s economic stability and its impact on multinational corporations operating in the region. While Microsoft has not officially confirmed the closure, the uncertainty surrounding the future of the ADC underscores the challenges of doing business in Africa.
The closure of the Lagos ADC could have ripple effects beyond Microsoft, affecting local talent, innovation ecosystems, and the broader technology industry in Nigeria. It highlights the importance of fostering an enabling environment for businesses to thrive and attract investment. Additionally, it underscores the need for greater transparency and communication between multinational corporations and the communities they operate in.
As Microsoft evaluates its options regarding the ADC, stakeholders await further developments and hope for a resolution that prioritizes the interests of employees, partners, and the African tech ecosystem as a whole.
Sahara Reporters