Technology is becoming an increasingly important part of Africa’s economic growth story, but many startups still face difficulties securing the long-term funding needed to scale. To help close that gap, Africa Finance Corporation (AFC) has committed up to US$100 million to invest in Africa-focused technology funds, with a strong focus on African-owned fund managers.
The announcement comes as Africa’s digital economy continues to expand rapidly. The sector is projected to contribute more than US$700 billion to the continent’s GDP by 2050, supported by a young population, rising internet access and growing adoption of digital services across industries.
Despite the momentum, many African technology businesses continue to face challenges accessing long-term institutional capital needed to grow and compete at scale. AFC says its latest commitment is aimed at increasing local participation in venture funding while helping African investors take a stronger position in the continent’s technology ecosystem.
Africa’s startup sector has already shown strong growth in recent years. The continent has produced nine unicorns and some African fund managers have delivered returns of up to 128 times their original investments. African startups also raised US$3.8 billion in 2025 alone, highlighting continued investor interest in the market.
Samaila Zubairu, President and CEO of AFC, said Africa’s young population is already driving the digital economy forward through innovation and technology adoption.
“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,” he said.
Zubairu added that digital infrastructure is becoming just as important as traditional infrastructure sectors in supporting economic growth across Africa.
“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,” he said.
Supporting African Technology Businesses
As part of the first phase of the initiative, AFC has already made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III. The investments position AFC across different stages of the startup ecosystem, from early-stage ventures to companies looking to expand across markets.
The corporation also confirmed that it is reviewing additional Africa-focused technology funds for future investment.
Pal Erik Sjatil, Managing Partner and CEO of Lightrock, said AFC’s participation reflects confidence in high-growth African technology businesses.
“We are delighted to welcome Africa Finance Corporation as an anchor investor in Lightrock Africa II,” he said.
Sjatil added that the partnership is built around backing technology-enabled businesses with strong business models and clear paths to profitability while also supporting measurable social and environmental impact.
Lightrock has previously worked with AFC on investments involving companies such as Moniepoint, Lula and M-KOPA.
Meanwhile, Future Africa Fund III will focus on supporting founders building businesses in financial inclusion, digital infrastructure, consumer technology and education.
Iyin Aboyeji, Founding Partner at Future Africa, said Africa’s young population is already deeply connected to the digital economy but still needs stronger support systems to fully benefit from it.
“Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally,” he said.
Aboyeji said more investment is needed in digital skills, infrastructure and tools that help entrepreneurs and workers participate in the global digital economy. He described AFC’s commitment as “the anchor this moment demands” and said the investment sends a strong signal about the importance of digital infrastructure to Africa’s future growth.
Driving Long-Term Growth
The commitment forms part of AFC’s wider strategy to invest in infrastructure systems that connect Africa’s digital and physical economies. The organisation says technology platforms are becoming increasingly important in improving trade, financial services, logistics and connectivity across the continent.
Established in 2007, AFC has grown into one of Africa’s leading infrastructure investment institutions. The corporation has 48 member countries and has invested more than US$19 billion across 36 African countries since inception.
Through the new commitment, AFC aims to mobilise more institutional capital into Africa’s technology sector while supporting innovation, job creation and long-term economic development across the continent.
