The financing will initially back Lightrock Africa Fund II and Future Africa Fund III as AFC seeks to increase the flow of African institutional capital into technology businesses.

The investment comes at a time when African startups are still attracting strong interest despite a slowdown in global venture capital markets.

African startups raised about $3.8 billion in 2025, according to AFC, even as funding conditions became tougher worldwide.

The corporation believes the continent’s expanding digital economy presents a long-term growth opportunity, with projections showing it could contribute more than $700 billion to Africa’s GDP by 2050.

AFC President and Chief Executive Officer Samaila Zubairu said technology adoption across Africa is already reshaping economies faster than traditional infrastructure development.

“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. That is the investment signal,” Zubairu said.

Founded in 2007, AFC has traditionally focused on sectors such as power, transport, telecommunications and heavy industries.

The latest commitment signals a broader expansion into digital infrastructure and technology-enabled businesses, areas the institution increasingly sees as central to Africa’s economic transformation.

The corporation said one of its main goals is to reduce Africa’s dependence on foreign capital for startup financing.

Although African tech companies have continued to grow and several startups have achieved unicorn status in recent years, most venture capital funding on the continent still comes from international investors.

By investing in African-focused and African-owned fund managers, AFC hopes to encourage pension funds, insurance companies and other institutional investors on the continent to participate more actively in venture capital and private equity markets.

The first phase of the program includes anchor investments in Lightrock Africa Fund II, which supports growth-stage technology companies, and Future Africa Fund III, which targets earlier-stage startups. AFC is also evaluating additional fund managers for future commitments.

Tech publication TechCabal reported that AFC has already committed $25 million to Lightrock Africa Fund II and $15 million to Future Africa Fund III as part of the wider $100 million allocation.

Lightrock has previously backed African companies such as Moniepoint, Lula and M-KOPA, firms that have become major players in financial services and digital commerce across the continent.

The investment firm said AFC’s support reflects confidence in African technology businesses that have demonstrated strong business fundamentals and growth potential.

“We are delighted to welcome Africa Finance Corporation as an anchor investor in Lightrock Africa II,” said Pal Erik Sjatil, Managing Partner and CEO of Lightrock.

“This commitment reflects a shared conviction in the opportunity to back high-growth, technology-enabled businesses with proven business models, strong fundamentals, and clear pathways to profitability.”

Future Africa Fund III will focus on sectors such as financial inclusion, digital infrastructure, education technology and consumer technology.

The firm’s founding partner, Iyin Aboyeji, said Africa’s young population is already deeply engaged in the global digital economy but still lacks adequate infrastructure and investment support.

“Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally,” Aboyeji said.

“What they need now are the skills, productive assets and infrastructure to build and scale within it.”

He added that AFC’s decision to back technology funds sends a strong message about the importance of digital infrastructure to Africa’s future growth.

“AFC’s backing sends a clear signal that digital is as fundamental to Africa’s transformation as agriculture, manufacturing and physical infrastructure,” Aboyeji said.

AFC said the initiative aligns with its broader strategy of investing in integrated infrastructure systems, where digital platforms increasingly support payments, logistics, trade and industrial activity across Africa.