The South African AI Association and the Western Cape Government have launched the Western Cape AI Cluster, a three-year collaboration designed to research, develop and grow the province’s AI ecosystem — and to position the Western Cape as a globally significant AI hub.
The cluster launches at a significant moment. South Africa’s planned National AI Policy was withdrawn from public consultation in April after AI-generated references were discovered in the draft document, leaving the country without a formal national framework. The Western Cape AI Cluster gains new credibility as an example of provincial government moving forward with ecosystem-building rather than waiting for national policy to fall into place.
The initiative operates within the provincial Department of Economic Development and Tourism’s Technology Ecosystem Enablement Programme and follows the globally recognized tech cluster model, bringing together commercial, government, academic, startup and NGO stakeholders to promote and coordinate opportunities that translate into jobs, foreign direct investment and regional economic growth.
Sovereign AI is identified as a central theme — a concept building momentum globally around the ability of nations, provinces, cities and municipalities to develop, deploy and govern AI systems independently. The cluster frames sovereign AI as critical to ensuring the benefits of AI are broadly shared rather than concentrated among a select few.
A new AI Factory is also set to launch in Cape Town, with the cluster aiming to play a key role in shaping its development and governance. Beyond ecosystem building, the cluster aims to attract foreign direct investment, create jobs and connect early-stage founders to capital and AI compute services.
The initiative also has a national dimension. A stated goal is to develop a success blueprint that other South African provinces can adopt — lending the Western Cape cluster potential significance beyond its immediate regional impact.
As part of the cluster’s programme, Activate SA — described as South Africa’s first citizen and government AI conference dedicated to responsible AI — will be held in Cape Town from Aug. 25 to 27. The event is designed to bring together citizens, government and the technology sector around the responsible development and deployment of AI.
The South African AI Association launched in 2023 as the country’s first dedicated AI industry body, with a mandate spanning commercial, government, academic, startup and NGO sectors across ten founding objectives — from advising national and provincial governments on AI policy to connecting small and medium enterprises with funding and attracting foreign direct investment. The association signed an agreement with the Western Cape government in 2025 to form the new cluster.
