Transformative impact: new report shows Google services contributed $16bn in economic activity to Africa

A new report released today by Google has indicated that the company’s products and services—including Search, Ads, and Cloud—contributed an estimated $16 billion in economic activity across the region. This is equivalent to boosting the revenue of over 1 million small and medium-sized businesses.

The Digital Opportunity‬‭ of Sub-Saharan Africa, an independent report created by global policy and strategy consultancy, Public First reveals the significant economic impact of digital technologies‬ across Sub-Saharan Africa

For instance, it observed that a 1 per cent increase in internet access could‬ boost GDP by nearly 6%, demonstrating the critical role of digital technology in driving the‬ region’s economic future.‬

In 2021, Google committed $1 billion to accelerate Africa’s digital economy, focusing on improving‬ internet connectivity, supporting local entrepreneurs, and fostering innovation. The report was commissioned by the tech giant to highlight how these investments are driving‬
‭ progress in these areas across the continent.‬

According to the report, with more than half of Sub-Saharan Africa’s population expected to gain access to the Internet‬ over the next decade, the report reveals that even modest increases in connectivity can have‬ profound economic effects.

Speaking to media representatives at the launch of the report, Alex Okosi, Managing Director, of Google in Africa explained that this illustrates the commitment of the company to continue to work with stakeholders to build a future where technology truly empowers every African to reach their full potential.

Related: FG announces ₦100M AI Fund for Nigerian startups in partnership with Google

“The opportunities for digital transformation in Sub-Saharan Africa are immense. We’re excited to‬ be part of this journey, driving innovation and economic growth through our investments in‬ connectivity, skills development, and entrepreneurship. The impact we’re seeing today is just the‬ beginning, and we’re committed to helping unlock the full potential of this dynamic region”, he explained.‬

Amy Price, Director & Head of Technology Policy‬‭ at Public First said that the research emphasises the‬ strategic importance of connectivity, cloud computing and artificial intelligence and explores‬ Google’s leadership in these areas.

“Digital technology has already had a powerful impact on people’s lives across Sub-Saharan‬ Africa. Further innovation is now set to turbocharge these benefits, with every dollar invested in‬ tech returning two dollars to the region’s broader economy”, she said.

‬In all, the report highlights the fact that with strategic interventions and supportive policies, the region can leverage its young population, vibrant culture, and entrepreneurial spirit to become a leader in the global digital landscape. It also provides strategic policy recommendations to maximise the potential of artificial‬ intelligence in Africa.

It emphasises the need for prioritising cloud-first policies and expanding‬ digital infrastructure to support AI and broader digital transformation.

It also highlights‬ the importance of building AI fluency and strengthening STEM education through collaboration‬ across public and private sectors, ensuring that the region’s workforce is equipped with the skills‬ necessary to thrive in a digitally driven economy.

Read also: Google search for AI topics in Nigeria increased by 130% in 2024

Key findings:

• The report estimates that AI could increase the region’s economy by over $30 billion.‬ Google’s ongoing commitment to responsible AI development, through its research centres in Ghana and Kenya, is set to play a pivotal role in this growth.‬
• ‭Digital technology is one of the most powerful ways for Sub-Saharan Africa to boost its economic growth. The report estimates that every $1 invested in digital technology will return over $2 for the region’s wider economy by 2030.
• In 2023, Google Search, Google Play, Android, YouTube, Google Cloud and Google Advertising helped provide an estimated $16 Billion of economic activity for businesses, nonprofits, publishers, creators and developers across Sub-Saharan Africa.
• The report shows that 76% of online adults in Sub-Saharan Africa identify as‬ entrepreneurs. Google’s initiatives, such as the Google for Startups Accelerator and the‬ Black Founders Fund, are providing crucial support to these entrepreneurs, helping them‬ transform innovative ideas into successful businesses.
• Google Search and Google Workspace help knowledge workers save over 100 million hours a week. This is equivalent to producing an $11 billion improvement in productivity for the region’s economy.
• YouTube has empowered a generation of digital entrepreneurs. 9 in 10 YouTube Creators agree that YouTube has given them a platform to share their creativity and culture with others – whilst also monetising their content.
• A majority of Sub-Saharan Africans access the internet through a mobile device powered by Android.

For more information and to access the full report, visit here.

The post Transformative impact: new report shows Google services contributed $16bn in economic activity to Africa first appeared on Technext.