Business Briefings
AFC Commits $100m to African Technology Funds
Africa Finance Corporation has approved a commitment of up to $100 million for investments in Africa-focused technology fund managers as part of efforts to deepen institutional participation within the continent’s venture capital ecosystem.
The corporation disclosed the development in a statement released on Monday.
According to AFC, the investment is aimed at addressing the shortage of long-term institutional funding that continues to constrain the growth and expansion of African technology companies despite increasing investor interest in the sector.
The corporation noted that Africa’s digital economy is projected to contribute more than $700 billion to the continent’s Gross Domestic Product by 2050, driven by growing technology adoption and rapid expansion of the digital population.
AFC stated that the capital commitment would focus on leading Africa-focused technology funds, particularly African-owned fund managers, to strengthen local ownership within the venture capital ecosystem and reduce dependence on foreign capital.
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President and Chief Executive Officer of AFC, Samaila Zubairu, stated that Africa’s youthful population and increasing technology adoption continue to create strong investment opportunities for digital infrastructure and innovation.
“AFC’s US$100 million Africa-focused Technology Fund will accelerate the convergence of growing demand, rapid technology adoption, youthful demographics and the enabling infrastructure we are building,” Zubairu stated.
According to him, digital infrastructure has become central to Africa’s economic transformation, supporting productivity, logistics, payments, services, cross-border trade, and job creation.
The corporation disclosed that Africa’s venture capital ecosystem has recorded significant growth in recent years, with startups across the continent attracting about $3.8 billion in funding in 2025.
AFC added that the continent has already produced nine unicorns despite funding challenges facing technology startups.
The institution, however, noted that local institutional investors remain largely underrepresented within African venture capital structures, with international investors continuing to dominate funding activity.
As part of the first phase of deployment, AFC disclosed that it has already made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III.
The corporation stated that the investments position AFC across the full innovation lifecycle, ranging from early-stage venture capital financing to growth-stage technology scaling.
According to AFC, the current commitments represent the first phase of a broader investment pipeline, with additional commitments to Africa-focused funds expected in the coming months.
Managing Partner and Chief Executive Officer of Lightrock, Pal Erik Sjatil, described the investment as a reinforcement of the organisation’s partnership with AFC in supporting high-growth technology-enabled businesses across Africa.
He stated that the collaboration reflects a shared commitment to backing scalable companies with strong fundamentals, proven business models, and clear profitability pathways.
Founding Partner of Future Africa, Iyin Aboyeji, stated that AFC’s investment highlights growing recognition of digital infrastructure as a major pillar of Africa’s economic transformation.
According to him, AFC’s backing as the fund’s first multilateral development bank partner could encourage development finance institutions, pension funds, insurance firms, and other institutional investors to increase participation in Africa’s technology ecosystem.
