Africa Finance Corporation (AFC) will invest up to $100 million in Africa-focused technology fund managers, signaling a strategic move into the continent’s digital economy. The first allocations will support Lightrock Africa Fund II and Future Africa Fund III, both targeting technology companies at various growth stages.
The continent’s digital economy is expected to contribute over $700 billion to GDP by 2050. This growth stems from a young population, increasing connectivity, and wider adoption of digital services.
Samaila Zubairu, AFC’s President and CEO, described the initiative as a response to Africa’s entrepreneurial energy. “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,” he said.
The effort seeks to close a funding gap. African startups raised $3.8 billion in 2025, yet most capital still comes from international investors. AFC’s investment aims to encourage local pension funds, insurers, and other institutions to participate more actively.
Lightrock Africa Fund II, led by Managing Partner Pal Erik Sjatil, focuses on growth-stage companies with proven business models. Its portfolio includes Moniepoint, Lula, and M-KOPA, all of which have expanded in financial services and consumer technology.
Sjatil welcomed AFC’s support, calling it a shared belief in the potential of technology-driven businesses. These companies often reshape industries like payments and logistics through digital platforms.
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Future Africa Fund III targets earlier-stage businesses in financial inclusion, digital infrastructure, consumer technology, and education. Founding Partner Iyin Aboyeji stressed the need to equip founders already active in the digital economy. “Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally,” he said. “They require skills, productive assets, and infrastructure to build and scale.”
Aboyeji noted that AFC’s involvement highlights digital transformation as essential to Africa’s progress, alongside agriculture, manufacturing, and physical infrastructure.
The initiative fits AFC’s broader strategy of investing in integrated infrastructure systems. The corporation sees digital platforms as key to enabling trade, logistics, payments, and industrial activity. More investments in Africa-focused funds are under review, with additional commitments likely soon.
Risks remain. Venture capital markets are unpredictable, and Africa’s digital economy faces obstacles like regulatory challenges and inconsistent access to electricity and internet. Yet AFC’s bet is straightforward: the continent’s tech-savvy population is already shaping the future, and institutional capital must adapt.
This transition could change how African startups secure funding. Success may prompt other local investors to follow, reducing dependence on foreign capital and retaining more value within Africa.
Digital infrastructure plays a vital role in this shift. Power system optimization can further support the stability needed for technology-driven growth.
