Google recently said it would invest $1 billion in Africa over five years to build a subsea internet cable, support nonprofits, and fund businesses.
The company’s Chief Executive Officer -CEO, Sundar Pichai during a virtual event made this disclosure adding that Google is making tremendous progress on constructing Equiano a platform after the Nigeria-born 18th-century abolitionist to connect Africa to Europe, that will increase Google’s global internet infrastructure that includes Dunant—which stretches from Virginia Beach in the US to the French Atlantic coast—and Curie, which connects Chile to Los Angeles.
The Equiano project according to Nitin Gajria Google’s managing director for Africa is expected to land in Nigeria, Namibia, St. Helena, and South Africa, and that when completed, the cable will provide approximately 20 times more network capacity than the last cable built to serve Africa and reduce internet prices across the continent by 21%.
On a call with journalists, Gajria said check sizes and equity stakes will differ with each startup Google invests in, and that there was no restriction as to sector. The fund will seek out startups “solving real challenges in Africa,” he said.
Google’s Gajria also said that the company won’t be constrained at looking beyond its five physical offices in Africa namely Johannesburg, Nairobi, Lagos, Cairo, and Accra to seek the possible abilities of opportunities across the continent.
He also hinted at Google’s $10 million funds that will issue low-interest loans to small businesses in Ghana, Kenya, Nigeria, and South Africa that will be managed by Kiva, a California-based non-profit microfinance company.
The Equiano project was first announced by Google in 2019 and is one of two subsea internet cable projects by Big Tech companies in Africa, in addition to Facebook’s 2Africa which was expanded this month to cover 26 countries. But Google is said to be getting into a space that Facebook hasn’t entered yet: directly funding African startups with venture capital.
During the virtual event Google’s startup accelerator in Africa Onajite Emerhor, also hinted that 50 entrepreneurs will get a share of a $3 million fund for Black founders in Africa; equity-free money which comes with perks like credits for cloud storage for early-stage startups, freeing up cash for other needs.
