Google continues to build on its commitment to invest $1 billion in Africa’s digital economy.
As AFROTECH™ previously reported, Google announced on Oct. 6, 2021, that it would focus on supporting the continent’s tech sector over the next five years to make the internet more accessible.
“Today I’m 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,” Google CEO Sundar Pichai said during a virtual event held in 2021, per TechCrunch.
Fast forward to 2024, and the tech giant has already invested over $900 million since the announcement and expects to reach its goal by 2026, according to information shared on its platform.
Its most recent investment includes participation in a $90 million funding round for telecom solutions provider Cassava Technologies, one of Google’s partners in building the first subsea fiber-optic cable connecting Africa to Australia, called the Umoja project. According to TechCrunch, Cassava Technologies, which has reached 30 countries, secured $310 million overall. Of that, its subsidiary Liquid Intelligent received $220 million through a debt refinancing deal from Standard Bank, Rand Merchant Bank, Nedbank, and the World Bank’s International Finance Corp., notes Data Center Dynamics.
As for the $90 million, the U.S. federal government’s International Development Finance Corp. (DFC) and Finnish finance company Finnfund also participated in the round, which will allow the fintech company to “…strengthen its balance sheet, drive sustainable profitable growth, and cement its position as a global technology company of African heritage.”
“DFC is committed to expanding digital infrastructure in the markets where we work to connect local communities to the world and unlock economic potential,” explained DFC CEO Scott Nathan in a news release. “Our investment in Cassava Technologies is a premier example of this effort. We are proud to be partnering with Cassava and with our counterparts at Google and Finnfund to help bridge the digital divide through reliable internet access, creating new opportunities for prosperity in Africa.”
Hardy Pemhiwa, president and group CEO of Cassava Technologies, commented:
“The investment by DFC, Google and Finnfund will further support the roll-out of our digital infrastructure and digital services across Africa. This, together with support from our existing shareholders is a validation of our vision of becoming the leading digital solutions provider in our chosen markets and cements our position as the largest technology company in Africa.”
