Africa Finance Corporation (AFC) has announced a commitment of up to US$100 million to invest in Africa-focused technology fund managers, marking a significant step in mobilizing institutional capital for the continent’s digital economy. With Africa’s digital economy projected to contribute over US$700 billion to GDP by 2050, the initiative aims to address the persistent gap in long-term capital that constrains the growth of high-potential technology businesses. By deploying catalytic capital, AFC seeks to increase the participation of African institutional investors and strengthen local ownership in the venture ecosystem.
Africa’s venture capital sector has already shown strong potential, producing nine unicorns and raising US$3.8 billion in 2025. However, most of this funding has come from international sources, leaving local capital underrepresented. AFC’s investment is designed to shift this dynamic, supporting African-owned fund managers and positioning itself as a leading institutional investor in the technology ecosystem.
The initial deployment includes anchor commitments to Lightrock Africa Fund II and Future Africa Fund III, covering the full innovation lifecycle from early-stage ventures to growth-stage scaling. Lightrock emphasized the shared conviction in backing high-growth, technology-enabled businesses with strong fundamentals, while Future Africa highlighted the importance of equipping young Africans with skills, infrastructure, and productive assets to fully participate in the global digital economy.
AFC President and CEO Samaila Zubairu underscored that digital infrastructure is now as fundamental to Africa’s transformation as traditional infrastructure like roads and power, enabling productivity, payments, logistics, and cross-border trade. The commitment reflects AFC’s broader strategy of integrating digital platforms with physical infrastructure to unlock value across sectors.
By combining its financial strength, structuring expertise, and pan-African network, AFC aims to catalyze greater investment in Africa’s technology ecosystem, mobilizing capital at scale while delivering sustainable development impact. This move signals a pivotal moment for Africa’s digital future, with the potential to accelerate innovation, create jobs, and drive long-term economic transformation.
