AFC Pledges $100 Million to African Tech Funds

Africa Finance Corporation (AFC) has announced a $100 million commitment to support technology fund managers focused on African startups, aiming to strengthen local institutional involvement in the continent’s growing venture capital ecosystem.

The investment comes at a pivotal moment for Africa’s digital economy, which is projected to contribute over $700 billion to the continent’s GDP by 2050, fueled by a rapidly expanding digital population and increased technology adoption by businesses

Bridging the Funding Gap

Even though Africa’s tech sector is growing, many startups struggle to get long-term funding. AFC’s investment aims to help fix this by putting money into Africa-focused funds, especially those run by Africans. This will reduce reliance on foreign investors and give local fund managers more control.

AFC President and CEO Samaila Zubairu said digital infrastructure is as important to Africa as roads, railways, ports, and electricity. He added that technology investments help improve productivity, payments, logistics, services, trade, and create jobs.

Supporting Innovation and Growth

AFC plans to invest at every stage of tech development, from early-stage startups to companies ready to grow bigger. The first part of the $100 million has already been invested in Lightrock Africa Fund II and Future Africa Fund III. These funds support fast-growing tech companies with strong business models and clear plans to make profit.

Pal Erik Sjatil, CEO of Lightrock, said the investment strengthens an existing partnership to back African tech businesses. Future Africa said AFC’s support will help early-stage startups in areas like financial services, consumer technology, education, and digital infrastructure.

Iyin Aboyeji, Founding Partner of Future Africa, added that AFC’s role as the first multilateral development bank partner could encourage more local banks, pension funds, and insurance companies to invest in African tech.

Africa’s Venture Capital Market Today

Africa’s venture capital market has grown in recent years. In 2025, African startups raised $3.8 billion and produced several unicorns. But local investors still play a small role. AFC’s investment is expected to change that by encouraging more African investors to back innovation.

Funding for startups has slowed down recently. In April 2026, African startups raised $110.4 million across 34 deals, down from $150.5 million across 27 deals in March. While there were more deals, the total money invested fell, showing that investors are cautious and focused on sustainable business models.