Google to invest $1 billion in Africa to improve connectivity and invest in startups

Tech giant Google announced that it is going to invest $1 billion in Africa to improve connectivity across the continent and invest in startups over the next five years.

According to Google and Alphabet CEO Sundar Pichai in a Google Africa event today, the investment will cover four broad initiatives to support the continent’s digital transformation. They are:

• Enabling affordable access and building products for every kind of African user.

According to Pichai, Google is building a subsea cable, Equiano, that will run through South Africa, Namibia, Nigeria and St. Helena and connect Africa with Europe. This will help bring faster internet to more people and lower connectivity costs.

Google has collaborated with Kenya’s largest carrier Safaricom to support the launch of the first “Device Financing” plan in Kenya, and will expand this initiative across Africa with partners like Airtel, MKOPA, MTN, Orange, Transsion Holdings and Vodacom, and more. These partnerships will help millions of first-time smartphone users gain access to quality, affordable Android smartphones.

• Investing in entrepreneurs to spur next-generation technologies.

Google will, through a Black Founders Fund, invest in Black-led startups in Africa by providing cash awards and hands-on support. This is in addition to Google’s existing support through the Google for Startups Accelerator Africa, which has helped more than 80 African startups with equity-free finance, working space and access to expert advisors over the last three years. Google also announced the launch of an Africa Investment Fund. Through this fund, the company will invest $50 million in startups and provide them with access to Google’s employees, network, and technologies to help them build meaningful products for their communities.

Google says it will be providing $10 million in low-interest loans to help small businesses and entrepreneurs to get through the economic hardship created by COVID-19. It has collaborated with a non-profit organisation, Kiva, to achieve this in Ghana, Kenya, Nigeria and South Africa

• Supporting nonprofits working to improve lives across Africa

In the support of non-profits, Google.org is increasing its support with $40 million to help more partners responding to challenges in their communities. It is also providing $3 million in new grant funding to expand this pioneering work from Kampala across 10 cities in 5 countries on the continent.

Google has been in the forefront of supporting Africa’s digital transformation and entrepreneurship. In 2017, Google launched its Grow with Google initiative with a commitment to train 10 million young Africans and small businesses in digital skills. To date, Google has trained over 6 million people across 25 African countries, with over 60% of participants experiencing growth in their career and/or business as a result.