The Africa Finance Corporation has committed up to US$100 million to Africa-focused technology fund managers in a push to strengthen the continent’s digital economy and expand access to long-term capital for startups and technology businesses.
As part of the first phase of deployment, AFC has made anchor commitments – cornerstone investments that signal institutional confidence – to two fund managers: Lightrock Africa Fund II, led by Managing Partner and CEO Pal Erik Sjatil, and Future Africa Fund III, the venture capital platform co-founded by Nigerian entrepreneur Iyinoluwa Aboyeji. The commitments position AFC across different stages of the innovation ecosystem, from early-stage startups to growth-stage technology companies.
Future Africa, known for backing startups solving challenges in financial inclusion, education, digital infrastructure and consumer technology, is among the continent’s most recognised venture platforms. Lightrock has previously collaborated with AFC on investments involving companies such as Moniepoint, Lula and M-KOPA.
The announcement comes as Africa’s technology sector continues to attract growing investor attention despite global funding slowdowns, with fintech, digital infrastructure, logistics and AI-driven businesses increasingly shaping the continent’s economic future.
AFC said the investment would focus particularly on African-owned fund managers as part of efforts to deepen local participation in venture capital and reduce Africa’s overreliance on foreign institutional funding in its startup ecosystem.
Speaking on the initiative, AFC President and CEO Samaila Zubairu said Africa’s young population is already driving digital transformation through technology adoption and entrepreneurship.
“Across the continent, young Africans are not waiting for the digital economy to arrive — they are seizing the moment, adopting technology, creating markets and solving real economic problems faster than infrastructure has kept pace,” he said.
Zubairu described digital infrastructure as increasingly critical to Africa’s growth, comparing its importance to roads, rail, ports and power.
“Digital infrastructure is now as fundamental to Africa’s transformation as roads, rail, ports and power, enabling productivity, payments, logistics, services, data and cross-border trade, while creating jobs and industrial scale,” he said.
Africa’s digital economy is projected to contribute more than US$700 billion to the continent’s GDP by 2050, driven by rising internet penetration, mobile adoption and a rapidly growing youth population. Yet many African startups continue to face limited access to the patient capital – long-term, stable funding – required to scale across markets. According to AFC, the latest commitment is intended to help close that funding gap while encouraging more African institutional investors to participate in venture financing.
Aboyeji described AFC’s investment as a strong signal about the strategic importance of Africa’s digital economy. While echoing Zubairu’s sentiment, he said young Africans are already among the most active participants in the global digital economy.
He emphasised that Africa now needs deeper investments in digital skills, connectivity, energy infrastructure and productive tools to enable entrepreneurs and workers to compete globally. “AFC’s US$100 million commitment is the anchor this moment demands,” he added, expressing hope that development finance institutions, insurers and pension funds would increase participation in Africa’s technology sector.
Sjatil said AFC’s participation reflects growing confidence in African technology businesses with strong fundamentals and long-term growth potential.
According to AFC, African startups raised about US$3.8 billion in 2025. The continent has already produced several unicorns – startups valued at more than US$1 billion, despite persistent macroeconomic and infrastructure challenges.
Established in 2007, AFC has invested more than US$19 billion across 36 African countries and currently has 48 member states. The institution says the technology fund commitment forms part of its broader strategy to support infrastructure systems connecting Africa’s digital and physical economies.
Industry observers say the move could help attract more institutional capital into African venture financing at a time when startups across the continent are increasingly seeking sustainable funding models beyond short-term speculative investment.
