Google is preparing to invest millions of dollars in Africa to support businesses there.
Google made its plans known yesterday, at a virtual event where CEO Sundar Pichai announced that the company will invest $1 billion over the next five years in technology initiatives in Africa.
These initiatives range from improved connectivity through Equiano to investments in small businesses and startups.
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Google has already helped businesses through the Google for Startups Accelerator Africa program and the Black Founders Fund.
In three years, the accelerator program has supported more than 80 startup businesses.
So far, 50 startups have been selected to participate in the Africa program since October 13. Of the 50 startups, Google says 40% are led by women representing nine countries and 12 sectors.
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“There is a significant gap in terms of access to finance. Some groups don’t have access to finance as much as others. We’ve seen this in businesses led by women. And our effort with the Black Founders Fund is to help fill that gap to some extent,” said Nitin Gajria, Google’s Africa executive.
With the new investments, however, Google wants to support Africa's digital transformation. The company will invest in projects in various countries on the African continent, such as Kenya, Nigeria, Uganda, Ghana , etc. Google's submarine cable will pass through South Africa, Namibia, Nigeria and the island of Saint Helena, connecting Europe and Africa and offering better connectivity and higher speeds.
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In addition, Google has also created the Africa Investment Fund , which will invest $50 million in startups and offer them access to Google staff as well as its network and technologies to help them grow.
Finally, the company also mentioned low-interest loans. Google will channel about $10 million to small businesses in Nigeria, Kenya, South Africa and Ghana, offering a boost for the problems caused by COVID-19.
When asked about when Google will make its first round of investments, Gajria said: “We are in advanced stages of discussions, but I can’t say more at this point. I hope we will be able to come back with more information soon.”
Source: Techcrunch
