During the first Google for Africa event, which was virtually held and live aired concurrently throughout African countries, including Nigeria, Sundar Pichai, CEO of Google and Alphabet, revealed the strategy yesterday.
The five-year investment will promote the digital development of African nations, including Nigeria, by enabling higher internet speeds and reduced connectivity costs. It also involves the landing of the Equiano undersea cable.
Along with equity investments in African entrepreneurs, the $1 billion investment also includes low-interest loans to assist small enterprises.
Since 2017, Google has provided digital skills training to six million young Africans and businesses. More than 50 nonprofit organisations in Africa have received funding totalling more than $16 million from Google, and 100 million more Africans may now use the internet for the first time thanks to Android.
According to Google, the investment would concentrate on allowing quick, inexpensive internet access for more Africans, developing useful products, encouraging entrepreneurship and small businesses, and assisting organisations to improve lives all around Africa.
“Google is building global infrastructure to help bring faster internet to more people and lower connectivity costs. The subsea cable, Equiano, is expected to run through South Africa, Namibia, Nigeria and St Helena and connect the continent with Europe.
The price of smartphones is another barrier to internet access. In order for partners to offer financed devices, Android has developed a device locking technology as part of the Android platform, according to Google. The company also noted that it worked with Safaricom, Kenya's largest carrier, to support the launch of the first "Device Financing" plan in Kenya. The initiative will be expanded across Africa with partners including Airtel, MKOPA, MTN, Orange, Transsion Holdings, and Vodacom, among others.
According to the statement, the collaborations will give millions of people who have never used smartphone access to high-end Android devices at reasonable prices.
Google further explained that the government of The Gambia has adopted the initiative in providing addresses for residents and businesses across the capital Banjul and is now scaling to the rest of the country, “Plus codes is expected to expand to South Africa, Kenya and other countries in partnership with governments and non-governmental organisations.”
Google said that it would fund and provide hands-on support to Black-led firms in Africa through a Black Founders Fund.
This is in addition to Google's current assistance provided through the Google for Entrepreneurs Accelerator Africa, which over the past three years has provided over 80 African startups with equity-free financing, office space, and access to knowledgeable advisors. Additionally, Google declared the opening of an Africa Investment Fund. The business will invest $50 million through this fund in entrepreneurs, giving them access to Google's staff, network, and technologies to aid in the development of useful products for their communities.
Pichai said: “We have made huge strides together over the past decade, but there is more work to do to make the internet accessible, affordable and useful for every African. I am excited to reaffirm our commitment to the continent through an investment of $1 billion over five years to support Africa’s digital transformation to cover a range of initiatives from improved connectivity to investment in startups.”
On his part, Managing Director for Google in Africa, Nitin Gajria, said: “I am so inspired by the innovative African tech startup scene. In the last year, we have seen more investment rounds into tech startups than ever before. I am of the firm belief that no one is better placed to solve Africa’s biggest problems than Africa’s young developers and startup founders. We look forward to deepening our partnership with, and support for Africa’s innovators and entrepreneurs.”
Also speaking, the Minister of Small Business Development in South Africa, Stella Tembisa Ndabeni-Abrahams, said: “I am happy to note that Google has been active in supporting Small to Medium Enterprises (SMEs), dedicating even more resources to this sector, since the start of the COVID-19 pandemic. In the last 12 months, Google has helped close to 500,000 African businesses get online and reach new customers.”
Since 2012, the Google Arts and Culture team has worked with institutions all over the continent to preserve and publicise their collections. In exchange, the team offers a free online platform that is accessible to anybody in the world.