LAGOS, May 18 – Africa Finance Corporation has approved a commitment of up to $100 million for Africa-focused technology fund managers, as the institution moves to expand local institutional participation in the continent’s venture capital ecosystem.
The investment initiative comes amid projections that Africa’s digital economy could contribute more than $700 billion to the continent’s gross domestic product by 2050, driven by rising internet adoption, digital payments and technology-enabled services.
According to AFC, the capital will be deployed into leading Africa-focused venture capital funds, with a particular emphasis on African-owned fund managers.
The institution said the strategy is designed to address a persistent shortage of long-term institutional funding that continues to constrain the growth and scaling of African technology companies despite rising investor interest in the sector.
Samaila Zubairu, president and chief executive officer of Africa Finance Corporation, said Africa’s youthful demographics and accelerating technology adoption present a compelling long-term investment opportunity.
“Digital infrastructure is now as fundamental to Africa’s transformation as roads, rail, ports and power,” Zubairu said.
He added that technology infrastructure is increasingly driving productivity, payments, logistics, services, data systems and cross-border trade across the continent.
Africa’s venture capital market has expanded rapidly in recent years, producing several billion-dollar startups while attracting approximately $3.8 billion in startup funding in 2025.
However, AFC noted that African pension funds, insurers and other local institutional investors remain underrepresented in venture capital structures, leaving the sector heavily dependent on international capital.
As part of the initial deployment phase, AFC said it has already made anchor commitments to Lightrock’s Africa Fund II and Future Africa’s Fund III.
The investments position AFC across multiple stages of the innovation ecosystem, ranging from early-stage startup financing to growth-stage technology scaling.
Pal Erik Sjatil, managing partner and chief executive officer of Lightrock, said the partnership reflects growing confidence in scalable African technology businesses with strong profitability potential.
Iyin Aboyeji, founding partner of Future Africa, said AFC’s backing could encourage more development finance institutions and institutional investors to increase exposure to Africa’s digital economy.
Future Africa’s portfolio includes startups operating in sectors such as financial inclusion, digital infrastructure, education technology and consumer technology.
AFC said the current commitments represent the first tranche of a broader investment pipeline, with additional Africa-focused technology fund allocations expected in the coming months.
The move underscores growing efforts by African financial institutions to strengthen domestic ownership and financing capacity within the continent’s rapidly expanding technology sector.
