Africa Finance Corporation (AFC) has announced a significant commitment of up to $100 million to support Africa-focused technology fund managers. This strategic initiative aims to increase the proportion of local capital in the continent's rapidly expanding venture funding landscape. As part of its initial deployment, AFC has made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III, signaling strong support for the ecosystem.
Shifting the Capital Landscape
The investment directly addresses the current imbalance where most venture funding in Africa originates from international sources. AFC's commitment is designed to act as a catalyst, encouraging greater participation from African institutional investors such as pension funds and insurers. By backing local fund managers, the corporation seeks to build a more resilient and self-sustaining investment environment on the continent.
This initiative strategically aims to deepen local ownership within Africa's technology sector, which is crucial for long-term economic sovereignty. By fostering a stronger domestic investor base, the program supports the scaling of high-potential businesses with capital that understands the local context. This approach is expected to create a more robust and dynamic ecosystem driven by African stakeholders.
Fueling Africa's Digital Transformation
The commitment arrives as Africa's digital economy shows immense potential, with projections suggesting it could add over US$700 billion to the continent's GDP by 2050. The continent's venture capital scene has already demonstrated strong growth, with startups raising US$3.8 billion in 2025 and producing nine unicorns. AFC's investment is timed to capitalize on this momentum and accelerate further development across the technology sector.
Samaila Zubairu, President and CEO of AFC, emphasized that digital infrastructure is now as vital to Africa's development as traditional sectors like transport and power. He noted that young Africans are actively creating solutions and driving technology adoption faster than infrastructure has been able to support. This fund is intended to bridge that gap, enabling productivity, job creation, and cross-border trade.
Strategic Anchor Investments and Partnerships
AFC's initial deployment includes anchor investments in Lightrock Africa Fund II and Future Africa Fund III, covering the full innovation lifecycle. This dual approach supports both early-stage ventures and growth-stage companies poised for scaling, ensuring a comprehensive impact. These commitments represent the first tranche of a broader program, with AFC actively evaluating additional funds for future investment.
Pal Erik Sjatil, CEO of Lightrock, welcomed AFC as an anchor investor, highlighting a shared vision for backing high-growth, technology-enabled businesses with clear paths to profitability. He noted their existing partnership on successful investments like Moniepoint, Lula, and M-KOPA. This collaboration leverages aligned capital and a long-term perspective to support exceptional management teams and deliver strong returns.
Iyin Aboyeji, Founding Partner of Future Africa, described AFC's involvement as a pivotal moment, marking the fund's first partnership with a multilateral development bank. He expressed hope that this would encourage other development finance institutions and pension funds to follow suit. Aboyeji stressed the importance of investing in skills, tools, and infrastructure to empower Africa's youth in the global digital economy.
Ultimately, AFC's US$100 million commitment represents a landmark move to reshape Africa's technology investment landscape from within. By championing local fund managers and mobilizing domestic institutional capital, the initiative promises to foster a more sustainable and locally-owned innovation ecosystem. This strategic deployment of capital is poised to accelerate the continent's digital transformation and unlock significant long-term development impact.