Africa Finance Corporation has approved a commitment of up to $100 million to invest in Africa-focused technology fund managers, marking a major push to strengthen local participation in the continent’s fast-growing digital economy.
The initiative comes as Africa’s digital economy is projected to contribute more than $700 billion to GDP by 2050, driven by a rapidly expanding digitally connected population and increasing technology adoption by businesses. Despite this growth, limited access to long-term institutional capital continues to hinder the ability of many African technology companies to scale effectively.
Through the new commitment, AFC said it will deploy catalytic capital into leading Africa-focused technology funds, with a particular emphasis on African-owned fund managers. The corporation said the move is aimed at reducing the underrepresentation of local capital in venture funding while encouraging stronger participation from African institutional investors.
Africa’s technology ecosystem has continued to attract global attention in recent years, producing nine unicorns and raising approximately $3.8 billion in startup funding in 2025 alone. Some African fund managers have also delivered returns as high as 128 times invested capital. However, most venture financing on the continent still comes from international investors.
Speaking on the development, Samaila Zubairu said Africa’s youthful population and rapid technology adoption present a significant investment opportunity.
“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 has become as important to Africa’s transformation as traditional infrastructure sectors such as roads, ports, rail and power.
As part of the first phase of deployment, AFC announced anchor commitments to Lightrock Africa Fund II and Future Africa Fund III. The investments are expected to support businesses across the innovation cycle, from early-stage startups to growth-stage technology firms.
Pal Erik Sjatil welcomed AFC’s participation, describing it as a sign of confidence in Africa’s high-growth technology businesses.
He said the partnership would help support companies with strong fundamentals, proven business models and the potential to deliver both financial returns and measurable social impact.
Future Africa, which focuses on technology-enabled solutions addressing major African challenges, said AFC’s investment would strengthen support for founders operating in sectors such as financial inclusion, education, digital infrastructure and consumer technology.
Iyin Aboyeji described AFC’s commitment as a major signal to the market, particularly as AFC becomes the firm’s first multilateral development bank partner.
He noted that expanding digital infrastructure, AI-related skills and access to productive tools would help position Africa’s growing youth population as active participants in the global digital economy.
AFC said the investment initiative aligns with its broader strategy of financing integrated infrastructure systems where digital platforms complement physical infrastructure to unlock economic value across sectors.
The corporation added that it intends to leverage its balance sheet, structuring expertise and pan-African network to become a leading institutional investor in Africa’s technology ecosystem while supporting long-term development across the continent.
TNAM
Edited By Egwu Patience Nnennaya
