Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, announced that its Board has approved a commitment of up to US$100 million to invest in Africa-focused technology fund managers as part of a broader strategy to accelerate Africa’s digital industrialization.
The initiative comes as Africa’s digital economy is projected to contribute more than US$700 billion to GDP by 2050, driven by rising technology adoption, a rapidly growing digitally connected population, and increasing enterprise demand for digital solutions. Despite this momentum, AFC noted that long-term institutional capital remains limited across the continent’s technology ecosystem, constraining the growth and scaling of high-potential companies.
Through the commitment, AFC plans to deploy catalytic capital into leading Africa-focused technology funds, particularly African-owned fund managers. The company said the strategy is designed to increase participation from African institutional investors while deepening local ownership across the venture capital ecosystem.
Africa’s venture ecosystem has continued to expand in recent years, with the continent producing nine unicorns and African start-ups raising US$3.8 billion in 2025 alone. AFC noted that several leading African fund managers have also generated returns of up to 128 times invested capital. However, the majority of venture funding on the continent still originates from international investors, leaving local institutional capital significantly underrepresented.
As part of the initial deployment, AFC has made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III. The investments position AFC across the innovation lifecycle, ranging from early-stage venture capital to growth-stage scaling opportunities. AFC said the commitments represent the first tranche of a broader deployment strategy, with additional Africa-focused funds currently under evaluation.
The company explained that the commitment aligns with its broader infrastructure investment strategy, where digital platforms increasingly complement traditional infrastructure assets such as roads, rail, ports, and power systems. AFC added that it intends to leverage its balance sheet, structuring capabilities, and pan-African network to become a leading institutional investor in Africa’s technology ecosystem.
KEY QUOTES:
“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. That is the investment signal. 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. 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.”
Samaila Zubairu, President and CEO, Africa Finance Corporation
“We are delighted to welcome Africa Finance Corporation as an anchor investor in Lightrock Africa II, deepening a strong partnership shaped by our collaboration on high-impact investments across Africa, including Moniepoint, Lula, and M-KOPA. This commitment reflects a shared conviction in the opportunity to back high-growth, technology-enabled businesses with proven business models, strong fundamentals, and clear pathways to profitability. With aligned capital, a long-term perspective, and a shared focus on value creation, we are well positioned to support exceptional management teams and scale category-leading businesses that deliver attractive financial returns alongside measurable environmental and social outcomes.”
Pal Erik Sjatil, Managing Partner & CEO, Lightrock
“Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally. What they need now are the skills, productive assets and infrastructure to build and scale within it. By investing in AI-native skills, financing productive tools such as phones and laptops, and expanding energy, connectivity and compute infrastructure, we can convert Africa’s greatest asset — its people — into critical participants in the new global economy. AFC’s US$100 million commitment is the anchor this moment demands. As our first multilateral development bank partner, AFC is sending a clear signal that digital is as fundamental to Africa’s transformation as agriculture, manufacturing and physical infrastructure. We trust that other development finance institutions, insurers, reinsurers and pension funds will follow AFC’s lead.”
Iyin Aboyeji, Founding Partner, Future Africa
