The Africa Finance Corporation (AFC), a multilateral infrastructure finance institution headquartered in Nigeria, has approved an allocation of up to $100 million to invest in technology-focused venture capital and growth equity funds operating across Africa. The capital is intended to flow through fund managers that deploy into companies building digital infrastructure, financial technology, and related services.
AFC, established in 2007, is a development finance institution with 48 member countries. It focuses on infrastructure and industrial projects across Africa, providing debt, equity, advisory services, and project structuring support. Since inception, it has deployed more than $19 billion across 36 countries.
The new allocation is structured as catalytic capital aimed at expanding the participation of African institutional investors in venture funding. According to AFC, a key objective is to increase the role of African-owned fund managers in early and growth-stage financing, where international investors have historically accounted for a large share of commitments.
Samaila Zubairu, president and chief executive officer of AFC, said the investment reflects structural changes in how technology adoption is evolving across African markets.
“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. That is the investment signal,” said Samaila Zubairu, president and CEO of AFC.
“AFC’s US$100 million Africa-focused technology fund will accelerate the convergence of growing demand, rapid technology adoption, youthful demographics and the enabling infrastructure we are building. Digital infrastructure is now as fundamental to Africa’s transformation as roads, rail, ports and power – enabling productivity, payments, logistics, services, data and cross-border trade, while creating jobs and industrial scale.”
The initial deployment includes anchor commitments to Lightrock Africa Fund II and Future Africa Fund III, positioning AFC across multiple stages of the venture ecosystem. Lightrock focuses on growth-stage investments in technology-enabled businesses, while Future Africa invests in early-stage companies and supports founder development and ecosystem financing.
The two commitments represent the first phase of a broader deployment strategy, with AFC reviewing additional fund opportunities across different stages of venture capital. The institution said further allocations are expected as it builds a pipeline of Africa-focused fund managers.
Pal Erik Sjatil, managing partner and chief executive officer of Lightrock, said the partnership builds on prior co-investments in African technology companies.
“We are delighted to welcome Africa Finance Corporation as an anchor investor in Lightrock Africa II, deepening a strong partnership shaped by our collaboration on high-impact investments across Africa, including Moniepoint, Lula, and M-KOPA,” said Pal Erik Sjatil, managing partner and CEO of Lightrock.
“This commitment reflects a shared conviction in the opportunity to back high-growth, technology-enabled businesses with proven business models, strong fundamentals, and clear pathways to profitability. With aligned capital, a long-term perspective, and a shared focus on value creation, we are well positioned to support exceptional management teams and scale category-leading businesses that deliver attractive financial returns alongside measurable environmental and social outcomes.”
Iyin Aboyeji, founding partner of Future Africa, said the expansion of digital infrastructure and access to productive tools is central to scaling participation in the digital economy.
“What they need now are the skills, productive assets and infrastructure to build and scale within it. By investing in AI-native skills, financing productive tools such as phones and laptops, and expanding energy, connectivity and compute infrastructure, we can convert Africa’s greatest asset, its people, into critical participants in the new global economy,” he said.
“AFC’s US$100 million commitment is the anchor this moment demands. As our first multilateral development bank partner, AFC is sending a clear signal that digital is as fundamental to Africa’s transformation as agriculture, manufacturing and physical infrastructure. We trust that other development finance institutions, insurers, reinsurers and pension funds will follow AFC’s lead.”
