Google announces new initiatives to boost small business recovery

9th February 2022

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Google has committed support for startups, nonprofits and small, medium-sized and microenterprises (SMMEs) in South Africa to accelerate digital transformation and contribute to the country’s economic recovery.

This formed part of the global giant’s plan to invest $1-billion over five years to support Africa's digital transformation, announced by Google and Alphabet CEO Sundar Pichai in October 2021.

The focus of these investments is on enabling fast, affordable Internet access; building helpful products; supporting entrepreneurship and small business; and helping nonprofits to improve lives across Africa.

At the 2022 Google for South Africa event, Google South Africa country director Dr Alistair Mokoena said that small businesses contribute 52% to gross domestic product and employ millions of South Africans.

The support of small business recovery, which has been the hardest hit by the Covid-19 pandemic, will be key to economic recovery, as they have the potential to scale with the right support.

Google is committed to partnering with governments and partners to drive digital transformation and launch new – and bolster current – initiatives to help alleviate the devastation caused by the Covid-19 pandemic and offer support to organisations that work to improve the livelihoods of South Africans.

“Nonprofits are deeply impacted by the pandemic and the work done by these organisations to serve communities has been vital in helping South Africans over the past two years,” he said.

In line with this, Google.org awarded $500 000 in grant funding and training to Gift of the Givers, which received $300 000, and Food for Life South Africa, which received $200 000, to support them in their economic recovery.

The grant enables Food for Life South Africa to feed hot meals to over 40 500 people a month and distribute 3 000 parcels to needy families across the Gauteng region.

The Gift of Givers was able to upgrade hospitals in the Eastern Cape, provide food for patients at 40 hospitals, support feeding and food parcel schemes and support its programme, Jumpstart, which helps youth get into business.

Mokoena added that, to date, 22 South African nonprofit organisations have tapped into $6.5-million in Google.org grants to bolster their work supporting underserved black youth, SMMEs and women with the skills and knowledge to improve their livelihoods.

“Startups in South Africa have the potential to unlock a myriad of job opportunities for South Africans through innovative thinking and products that seek to solve some of the country's most pressing needs.”

The $3-million Google for Startups Black Founders Fund in Africa Programme, launched in June last year, has selected 50 top black-led technology startups locally and across the continent to join the programme after a rigorous and competitive selection process.

Through the six-month programme, they receive mentoring, training, access to Google products and tools, strategic support and product support, besides others.

The startups will receive $50 000 to $100 000 in funding to help spur their growth, Google government affairs and public policy senior manager Abongile Mashele said.

Further, 82 startups from 17 countries have participated in the Google for Startup Accelerator Africa Programme, raising $117-million in funding and creating 2 800 jobs, including 12 South African firms working across nine vertical sectors which collectively raised $3.5-million to date.

The intake for the seventh cohort of the three-month programme closed in January, with the selected participants set to be announced on March 7. The programme will run from March to May and include a one-week virtual bootcamp each month.

Small Business Development Minister Stella Ndabeni-Abrahams said that 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 SMMEs and cooperatives.

“In partnership with the Department of Small Business Development, Google 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 SMMEs and helping their businesses thrive,” she said.

The Hustle Academy, which will launch on February 21, offers a three-week-long course to enable small businesses to grow by increasing revenue, building sustainable business models for the future and positioning themselves for investment.

The academy seeks to train 1 500 entrepreneurs, offering live training sessions, one-on-one mentorship and masterclasses by industry leaders.

“Business owners will also gain direct access to a wealth of networking opportunities,” Ndabeni-Abrahams added.

Further, over the next few months, Google, in collaboration with Kiva and a local financial service provider, will be disbursing $3-million in loans to qualifying small businesses in South Africa, unlocking further growth opportunities for SMMEs.

The group is also building infrastructure to boost connectivity through its significant subsea cable investment.

Equiano will run through South Africa, Namibia, Nigeria and St Helena and connect the continent with Europe.

The cable, which is scheduled to land in South Africa in June and in Namibia in May, will almost triple Internet speeds by 2025 and reduce connectivity costs in a boost that is predicted to create 180 000 jobs in South Africa between 2022 and 2025, Mokoena said.

Meanwhile, Google Arts & Culture continues to digitise and share Africa’s rich heritage, partnering with the Origins Centre in South Africa on a new project called Cradle of Creativity.

The Cradle of Creativity project enables people from across the globe to explore more than 500 high-resolution images, 60 expertly-curated stories with audio narrations, as well as Street View virtual tours, helping to showcase Africa’s creative talent and heritage, said Google sub-Saharan Africa business to business marketing head and South Africa marketing head Asha Patel.

Edited by Creamer Media Reporter

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