Google, the world’s largest search engine, has announced a $1 billion investment in Africa.
The news was made during a virtual event when Alphabet Inc (GOOGL.O) announced the creation of an Africa Investment Fund, through which it will invest $50 million in companies and provide them with access to its staff, network, and technology.
In a virtual interview with Reuters, Nitin Gajria, managing director of Google in Africa, said the firm will seek companies focused on finance, e-commerce, and local language content, among other things.
Niti Gajria also explained how the money will be spent over the years.
What will Google do with its $1 billion investment in Africa?
The three areas of focus will be improving connectivity, investing in entrepreneurs, and working with non-profit organizations on the continent.
Small companies in Africa frequently face difficulties obtaining money because they lack the appropriate collateral that banks need in the event of a failure. When financing is accessible, the interest rates are frequently excessive.
Google will also give $10 million in low-interest loans to small companies and entrepreneurs in Ghana, Kenya, Nigeria, and South Africa, in partnership with the non-profit Kiva, to help them get through the economic hardship caused by COVID-19.
Google said on Wednesday that it will invest $1 billion in Africa over the next five years to guarantee that the continent has access to fast and affordable internet, as well as backing businesses to help the region’s digital transformation.Follow Cbgist.com On: