Through its Africa Investment Fund, Google is helping to lessen the gap in funding accessibility. It will provide each selected startup up to $100,000 in equity-free funding and access to its employees, network, and technologies, including Google Ad Grants and Cloud credits.
Until now, Google had fulfilled its obligations in the latter through its Google for Startups Accelerator Africa program and the recently launched Black Founders Fund.
In three years, the accelerator program has supported over 80 startups in seed to Series A stages, providing equity-free mentorship and resources.
Google plans to invest up to $50 million in African early- and growth-stage startups via its Africa Investment Fund, ramping up efforts to support more businesses on the continent.
Google has a good reason for trying to develop both technology providers and consumers in Africa. Africa is a massive technology market, and Google intends to tap into that.
Nigeria and Ghana have developing tech industries, and their cities show great growth potential. Their populations are young and modernize quickly, meaning more potential customers for Google’s services.
The more Google can help develop the tech industry in Africa, the more people will use their products.
In 2017 alone, Google saw a 13 percent increase in revenue from Africa, and this was only early on in its investing process. As time goes on, Google hopes to get more people online and continue to see a massive return on its investment in Africa.
Though Google’s investment in Uganda SafeBoda is an early reminder that startups from the Big Four markets will likely fill the fund’s portfolio in the next couple of years.
The Ugandan startup launched as a two-wheel ride-hailing platform before embarking on a super app plan two years ago. Now, it offers rides, parcel delivery, food and shop, payments, savings, and other financial services to over 1 million customers in Uganda and its second market, Nigeria.
The company counts more than 25,000 drivers who have completed over 40 million orders in both markets.
An important conclusion from this information is why people outside of Africa should care about Google’s investment in Africa, particularly in Ghana and Nigeria.
The answer is that Google is taking significant steps towards opening potential markets that could be future trade partners with U.S. companies and contributors to the U.S. economy.
Nigeria and Ghana currently have a massive potential to contribute to the international economic scene, and Google is providing essential education and capital to help them get there.
