AFC commits $100-million to African tech funds, the Africa Finance Corporation announced this week, marking a deliberate push to increase the share of local capital in the continent’s venture funding.
The board‑approved commitment will see the development financier anchor a series of Africa‑focused venture funds, with the first tranche already placed in Lightrock Africa Fund II and Future Africa Fund III.
While the exact size of each anchor investment remains undisclosed, AFC described them as the initial step in a broader programme that will continue to be evaluated.
The corporation stressed that most venture funding on the continent still originates from international sources, leaving African institutional investors under‑represented on fund cap tables.
By backing African‑owned and Africa‑focused fund managers, AFC hopes to draw pension funds, insurers and reinsurers into the tech space.
This strategy aligns with the corporation’s view that digital infrastructure is now as essential to development as roads, rail, ports and power.
AFC president and CEO Samaila Zubairu noted that the continent’s start‑ups raised $3.8 billion in 2025, a figure that underscores the growing momentum behind African innovation.
He added that Africa has already produced nine unicorns and that projections estimate the digital economy could add more than $700 billion to GDP by 2050.
Future Africa founding partner Iyin Aboyeji, who previously co‑founded Andela and Flutterwave, welcomed AFC as its first multilateral development bank backer.
He expressed hope that other development finance institutions and pension funds will follow suit, deepening the pool of local capital.
## AFC commits $100-million to African tech funds drives new local investment wave
The move comes amid a surge of interest in African tech, with global investors increasingly looking to the continent for high‑growth opportunities.
Yet AFC’s focus is distinct: it aims to shift the balance of ownership so that African institutions hold a larger stake in the funds that back homegrown start‑ups.
Local pension funds, for example, have traditionally been cautious about allocating to venture capital due to perceived risk and limited track records.
By providing anchor commitments, AFC hopes to de‑risk the asset class and demonstrate that African‑managed funds can deliver competitive returns.
Early indications suggest that several South African retirement funds are already reviewing the Lightrock and Future Africa offerings as potential allocations.
Insurers and reinsurers, which have long‑term liabilities matching the horizon of tech investments, are also viewed as natural partners.
AFC’s programme will run alongside its existing infrastructure lending, creating a synergy between physical and digital development across the region.
Analysts note that if the initiative scales, it could unlock billions of rands currently sitting idle in local balance sheets.
The corporation did not set a timeline for full deployment, but indicated that further fund evaluations are underway and additional announcements are expected later this year.
In shaping this effort, AFC is tapping into a growing narrative that African solutions require African capital.
The emphasis on African‑owned fund managers is intended to ensure that profits and decision‑making remain within the continent.
This approach contrasts with earlier waves of foreign‑led venture funds that often repatriated returns to overseas investors.
By keeping more of the upside local, AFC believes the ecosystem will become more resilient and self‑sustaining.
The initiative also supports broader policy goals of many African governments seeking to deepen their domestic financial markets.
If successful, the model could be replicated in other sectors such as renewable energy, agribusiness and health‑tech.
Overall, the $100‑million commitment represents more than a financial pledge; it is a signal that Africa’s development financiers are ready to back the continent’s entrepreneurial talent with home‑grown money.
As we reported earlier, the venture landscape is evolving, and AFC’s latest move could prove pivotal in tilting the scales toward greater African ownership and long‑term prosperity.