AFC Unveils $100 Million Investment Plan to Boost Africa’s Tech Startups and Digital Economy
Africa’s technology sector is set for a major boost as the Africa Finance Corporation (AFC) announced plans to invest up to $100 million in Africa-focused technology funds, a move aimed at expanding long-term capital for startups and strengthening the continent’s growing digital economy. The funding will primarily target leading technology fund managers, with a strong emphasis on African-owned firms that are backing innovative, high-growth businesses across the continent.
The corporation said the initiative is designed to increase the participation of African institutional investors in venture capital funding, a space that has largely been dominated by foreign investors. By directing capital to local fund managers, AFC hopes to deepen African ownership within the venture capital ecosystem while creating more opportunities for entrepreneurs developing solutions to the continent’s challenges.
According to AFC, the investment comes at a time when Africa’s digital economy is experiencing rapid expansion and is projected to contribute more than $700 billion to the continent’s GDP by 2050. The corporation noted that Africa’s startup ecosystem has already demonstrated remarkable potential, producing nine unicorn companies and attracting $3.8 billion in startup funding in 2025, while some fund managers have delivered returns of up to 128 times their original investments.
Speaking on the development, AFC President and Chief Executive Officer, Samaila Zubairu, described digital infrastructure as a critical pillar of Africa’s economic transformation. He said young Africans are increasingly leveraging technology to create businesses, open new markets, and solve pressing economic challenges, even as infrastructure development struggles to keep pace with innovation. Zubairu stressed that digital infrastructure has become as essential to growth as roads, railways, ports, and power systems.
As part of the first phase of the programme, AFC has already made anchor investments in Lightrock Africa Fund II and Future Africa Fund III. The funds support businesses operating in sectors such as financial inclusion, digital infrastructure, consumer technology, and education. Commenting on the partnership, Iyinoluwa Aboyeji said AFC’s commitment sends a powerful signal that digital infrastructure should be treated with the same strategic importance as agriculture, manufacturing, and traditional infrastructure. Since its establishment in 2007, AFC has invested more than $19 billion across 36 African countries, reinforcing its role as one of the continent’s leading development finance institutions.
source: The cable