African Tech Investors Gain New Backing Through AFC’s $100 Million Commitment
Africa’s infrastructure lender is moving deeper into venture capital as startup funding gaps persist
A new pool of institutional money is being directed toward African technology investors after Africa Finance Corporation approved a commitment worth as much as $100 million for venture and growth-stage funds operating across the continent. The financing programme is aimed at increasing the amount of long-duration capital available to technology businesses as digital adoption deepens in African markets.
Rather than backing startups one by one, AFC is placing capital with investment firms that already manage African-focused portfolios. The corporation said the approach is intended to strengthen locally connected fund managers while widening financing options for companies building software platforms, payments systems and digital infrastructure.
The first commitments under the programme have already been made to Lightrock Africa Fund II and Future Africa Fund III. AFC indicated that additional investments into technology-focused funds are under consideration.
According to AFC chief executive Samaila Zubairu, digital systems are becoming increasingly central to economic activity across Africa, particularly as businesses and consumers rely more heavily on online services. He said demand for technology continues to grow even though startup financing conditions have tightened globally over the past two years.
The corporation estimates that Africa’s digital economy could exceed $700 billion in economic output by 2050. Expanding internet access, rising smartphone use and increased adoption of digital business tools are expected to contribute to that growth.
The investment programme also reflects a broader effort to pull more institutional investors into Africa’s technology sector. Pension funds and development finance institutions have historically allocated limited capital to venture-backed technology businesses, leaving many startups dependent on foreign investors and shorter investment cycles.
Technology companies operating in fintech, education, digital commerce and infrastructure are expected to benefit indirectly from the AFC-backed strategy. Venture funding across Africa reached roughly $3.8 billion during 2025, with investors continuing to concentrate on sectors linked to financial services and enterprise technology.
AFC said its latest allocation forms part of a longer-term effort to support African-owned investment platforms capable of financing companies through multiple stages of growth.
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