Africa Finance Corporation (AFC) has approved up to $100 million in commitments to support Africa-focused technology fund managers, in a move aimed at increasing local participation in the continent’s growing startup and digital economy.
The investment programme will focus particularly on African-owned fund managers and is designed to help close the gap in local institutional funding within Africa’s venture capital ecosystem.
AFC said the initiative will provide catalytic capital to technology investment funds supporting startups and fast-growing digital businesses across the continent.
As part of the first phase of deployment, AFC has already made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III.
The corporation said the strategy allows it to support companies across different stages of growth, from early-stage startups to more mature technology businesses preparing to scale.
According to AFC President and CEO Samaila Zubairu, Africa’s young population and rapid digital adoption continue to create strong opportunities for technology-driven growth.
He said digital infrastructure has become as important to Africa’s development as roads, power, rail, and ports because it supports payments, logistics, services, cross-border trade, and job creation.
“Across the continent, young Africans are not waiting for the digital economy to arrive; they are seizing the moment,” Zubairu said.
The investment also reflects growing efforts to strengthen African ownership within the technology investment space, where much of the venture capital funding historically came from international investors.
Lightrock said AFC’s backing strengthens an existing relationship between both organisations, which have previously collaborated on investments in African technology companies including Moniepoint, Lula, and M-KOPA.
Pal Erik Sjatil described the commitment as a sign of confidence in technology-enabled African businesses with strong fundamentals and long-term growth potential.
Meanwhile, Future Africa said the funding comes at an important moment for Africa’s digital economy.
Founding partner Iyin Aboyeji said Africa’s young population is already actively participating in the digital economy but still needs greater access to infrastructure, financing, digital tools, and technology skills to scale businesses successfully.
He added that AFC’s investment could encourage other development finance institutions, insurers, pension funds, and institutional investors to increase support for Africa’s technology ecosystem.
AFC said the commitments to Lightrock Africa Fund II and Future Africa Fund III represent only the first tranche of a broader investment strategy, with additional Africa-focused technology funds currently under evaluation.
The move comes as African startups continue to face a more cautious global funding environment, with investors increasingly prioritising sustainable growth, profitability, and stronger local ecosystem participation.
