Africa Finance Corporation (AFC) has approved a commitment of up to $100 million to invest in Africa-focused technology fund managers. The initial allocations will go to Lightrock Africa Fund II and Future Africa Fund III, as the institution increases its exposure to the continent’s digital economy.
The move is seen as a significant step in supporting the growth of Africa’s digital economy, which is projected to contribute more than $700 billion to GDP by 2050. This growth will be supported by demographic growth, rising connectivity, and expanding adoption of digital services across sectors.
Digital Economy Growth
African technology companies continue to attract investor attention despite tighter global venture capital conditions. According to the corporation, the new initiative is designed to address the limited participation of African institutional capital in venture and growth-stage investing.
While African start-ups raised $3.8 billion in 2025, most venture funding on the continent still originates from international investors. The corporation said the capital will be directed primarily toward African-owned fund managers spanning early-stage and growth-stage investing.
Investment Strategy
The institution intends to use its balance sheet to catalyse broader participation from African pension funds, insurers, and other institutional investors. The first commitments under the programme include an anchor investment in Lightrock Africa Fund II, which focuses on growth-stage technology companies, and Future Africa Fund III, which targets earlier-stage businesses.
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Pal Erik Sjatil, Managing Partner and CEO of Lightrock, said AFC’s commitment reflected “a shared conviction in the opportunity to back high-growth, technology-enabled businesses with proven business models, strong fundamentals, and clear pathways to profitability”.
As the continent’s digital economy continues to grow, it’s likely that we’ll see more investments in Africa-focused technology funds. This growth could lead to increased participation from African institutional investors, which would be a significant step in supporting the development of the continent’s digital economy.
Future Investments
Future Africa Fund III will focus on founders building businesses in sectors including financial inclusion, digital infrastructure, consumer technology, and education. Iyin Aboyeji, Founding Partner at Future Africa, said: “Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally.”
AFC said the technology fund initiative forms part of its broader strategy of investing across integrated infrastructure systems, where digital platforms increasingly support trade, logistics, payments, data services, and industrial activity across the continent. The corporation is also evaluating additional investments in Africa-focused funds across different strategies and stages, with further commitments expected over time.
The corporation’s commitment to investing in Africa-focused technology fund managers is a significant step in supporting the growth of the continent’s digital economy. As digital economy continues to grow, it’s likely that we’ll see more investments in this sector.
