Africa-focused infrastructure financier Africa Finance Corporation (AFC) will commit up to $100 million to technology-focused fund managers across the continent, as development finance institutions increasingly expand into digital infrastructure and venture ecosystems to support economic growth.
The investment vehicle, approved by AFC’s board, will back Africa-focused technology funds, particularly African-owned managers, in a move aimed at mobilising more local institutional capital into the continent’s startup ecosystem, the corporation said.
The initiative highlights how development financiers are broadening their infrastructure strategies beyond transport, power and ports to include digital platforms, connectivity, payments systems and data infrastructure viewed as critical to economic transformation.
Africa’s digital economy is projected to contribute more than $700 billion to gross domestic product by 2050, according to AFC, driven by a young population, rising connectivity and growing enterprise adoption of technology.
Despite that momentum, Africa’s venture capital sector remains heavily dependent on foreign investors, while local pension funds, insurers and other institutional investors remain underrepresented in startup financing.
AFC said the commitment is designed to help address that gap by deploying catalytic capital into leading technology funds and encouraging broader participation from African institutional investors.
The move underscores how development finance institutions are increasingly treating technology ecosystems, digital payments, connectivity and data infrastructure as strategic economic assets rather than purely venture capital opportunities.
The strategy also reflects a broader shift among development lenders seeking exposure to sectors with faster scalability and stronger domestic consumption dynamics than traditional infrastructure projects, particularly as African governments push digitalisation agendas and fintech adoption accelerates across the continent.
As part of the first deployment, AFC has made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III, spanning early-stage and growth-stage technology investments. The corporation did not disclose individual allocation sizes.
African startups raised about $3.8 billion in 2025, according to AFC, while the continent has produced nine unicorns and several fund managers have generated returns of up to 128 times invested capital.
Still, funding remains concentrated in a small number of markets and many startups continue to face challenges securing long-term local capital, particularly as global venture investors become more selective after the post-pandemic funding boom.
AFC President and Chief Executive Samaila Zubairu said digital infrastructure was becoming as important to Africa’s development as roads, rail, ports and power, enabling productivity, payments, logistics, services, data and cross-border trade.
Founded in 2007, AFC has invested more than $19 billion across 36 African countries, focusing on sectors including energy, transport, telecommunications, natural resources and heavy industry.