Internet giant Google has made a multimillion-dollar investment to support South African SMEs and non-profit organisations, in what it says is a move to contribute to SA’s digital economy.
The announcement was made at a virtual event today.
The investment follows announcements made at the virtual Google for Africa event in October last year, when Google and Alphabet CEO Sundar Pichai announced Google’s plan to set aside $1 billion over five years to support Africa’s digital transformation.
According to a statement, the focus of these investments is on enabling fast, affordable internet access for more Africans, building helpful products, supporting entrepreneurship and small business, and helping non-profits to improve lives across Africa.
As the COVID-19 pandemic enters its third year, these initiatives seek to help alleviate the devastation caused in communities and offer support to organisations that work tirelessly to improve the livelihoods of South Africans, notes the company.
Through a rigorous and competitive selection process, the Google for Start-ups Black Founders Fund in Africa Programme has selected 50 top black-led technology start-ups locally and across the continent to join the programme.
The start-ups will receive $50 million in funding to help spur their growth, as part of a broader Africa Investment Fund plan launched last year.
South African Gaming firm Carry1st is one such start-up that has already received equity investments from the programme.
“To date, 22 South African non-profit organisations have tapped into $6.5 million in Google.org grants to bolster their work supporting under-served black youth, SMEs and women with skills and knowledge to improve their livelihoods,” says Dr Alistair Mokoena, country director, Google South Africa.
“Start-ups in South Africa have the potential to unlock a myriad of job opportunities through innovative thinking and products that seek to solve some of the country's most pressing needs.”
In partnership with the Department of Small Business Development, Google says it wants to provide support, training and resources to these small enterprises through the newly-launched Hustle Academy, a Sub-Saharan African initiative aimed at supporting SMEs and helping their businesses thrive.
Small business development minister Stella Ndabeni-Abrahams spoke at the event, lauding the announcement.
“Digital markets and digital transformation are important enablers for the Department of Small Business Development’s vision to ensure a transformed and inclusive economy, driven by sustainable, innovative SMEs and co-operatives. The initiatives discussed today at Google for South Africa are strongly aligned to this vision,” noted Ndabeni-Abrahams.
In the coming months, Google says, in collaboration with Kiva, a local financial service provider, it will disburse $3 million in loans to qualifying small businesses in SA, unlocking further growth opportunities for SMEs.
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