Google plans to invest $1 billion in Africa over the next five years to ensure access to fast and cheaper Internet. According to Wednesday's announcement, the company will support the continent's digital transformation.

"Today I am excited to reaffirm our commitment to the continent. We intend to support Africa's digital transformation. The idea involves covering a range of initiatives, from improving connectivity to investing in startups," said Sundar Pichai, CEO of Google and Alphabet.

The Alphabet Inc (GOOGL.O) unit released the information at a virtual event where it launched an Investment Fund for Africa. Through this Google will invest $50 million in startups, giving them access to its employees, network and technologies.

In collaboration with the non-profit organization Kiva, Google will also make $10 million in low-interest loans available. The idea is to help small businesses and entrepreneurs in Ghana, Kenya, Nigeria and South Africa overcome the economic difficulties created by Covid-19.

Google said that the program launched last year in Kenya in partnership with Safaricom would be extended across the continent with mobile operators such as MTN, Orange and Vodacom. The program allows customers to pay for 4G phones in installments.

The company is building an undersea cable to connect Africa and Europe, which Safaricom says will bring faster Internet and lower connectivity costs.