The Africa Finance Corporation (AFC) has announced a commitment of up to US$100 million to invest in Africa-focused technology funds, in a move aimed at strengthening long-term financing for startups across the continent and expanding the role of African fund managers in venture capital.
The initiative comes at a time when technology is playing an increasingly central role in Africa’s economic transformation. The continent’s digital economy is projected to contribute more than US$700 billion to GDP by 2050, driven by a young population, rising internet penetration, and accelerating adoption of digital services across key sectors.
YOU CAN ALSO READ: Why Structured Wealth May Be Nigeria’s Missing Financial Solution
Despite this growth trajectory, many African startups continue to face challenges in accessing the long-term institutional capital required to scale sustainably. AFC said its latest commitment is designed to address this gap by increasing local participation in venture funding while strengthening Africa’s position within its own technology investment ecosystem.
Africa’s startup landscape has recorded significant milestones in recent years, including the emergence of nine unicorns and strong returns from select fund managers, some of whom have delivered up to 128 times on initial investments. In 2025 alone, African startups raised approximately US$3.8 billion, underscoring sustained investor interest in the sector.
Speaking on the development, President and CEO of AFC, Samaila Zubairu said Africa’s young population is already driving digital transformation across industries through innovation and rapid technology adoption.
He noted that across the continent, young people are actively shaping digital markets, building solutions, and addressing economic challenges faster than infrastructure development has been able to keep pace.
Zubairu also emphasized the growing importance of digital systems in Africa’s broader development agenda, describing digital infrastructure as increasingly fundamental to economic transformation alongside traditional assets such as roads, ports, rail, and energy.
He said digital platforms are now central to productivity, financial services, logistics, and cross-border trade, while also creating new employment opportunities and enabling industrial-scale growth.
As part of the first phase of the investment programme, AFC has made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III, positioning itself across multiple stages of the startup lifecycle, from early-stage ventures to scale-up companies expanding across markets.
The corporation also confirmed that it is evaluating additional Africa-focused technology funds for future investment deployment.
Pal Erik Sjatil, Managing Partner and CEO of Lightrock, welcomed AFC’s participation, describing it as a strong vote of confidence in high-growth African technology businesses. He said the partnership focuses on backing technology-enabled companies with sustainable business models and measurable social and environmental impact. Lightrock has previously co-invested with AFC in companies including Moniepoint, Lula, and M-KOPA.
Future Africa Fund III will focus on startups operating in financial inclusion, digital infrastructure, consumer technology, and education. Founding Partner Iyin Aboyeji said Africa’s young population is already highly active in the global digital economy but requires stronger support systems to unlock its full potential.
YOU CAN ALSO READ: How a Friendsgiving Experiment Sparked a $3 Million Ice Cream Brand
He added that greater investment is needed in digital skills, infrastructure, and tools that enable entrepreneurs and workers to compete globally, describing AFC’s commitment as a significant signal of confidence in the continent’s digital future.
Established in 2007, the Africa Finance Corporation has evolved into one of the continent’s leading infrastructure investment institutions, with 48 member countries and more than US$19 billion invested across 36 African countries.
Through this latest commitment, AFC aims to mobilize additional institutional capital into Africa’s technology sector, supporting innovation, job creation, and long-term economic growth across the continent.
