Why is the AFC supporting Africa centric tech fund managers with $100m?

The board of the Africa Finance Corporation (AFC) approved a commitment of up to $100 million to invest in Africa-focused technology fund managers.

The $100 million investment is roughly 10% of the AFC’s annual estimated revenue, a significant portion of it. The commitment is aimed at tech fund managers with a strong interest in the African Tech ecosystem. This will fuel the infrastructure needed to meet Africa’s growing digital demand while providing capital for builders and jobs for talents.

The initiative by the AFC is well-timed. Africa’s digital economy is projected to contribute over $700 billion to GDP by 2050. A fast-growing, digitally connected continent, coupled with a steep rise in institutional adoption of technology, will drive this financial projection.

To meet this projection, the African Tech ecosystem would need a massive influx of institutional capital to scale startups and power technology businesses. The AFC is laying the groundwork for this today by its decision to support Africa-focused tech fund managers.

The Current State of Africa’s Venture Capital Ecosystem

Despite international funds dominating this ecosystem, Venture capital in Africa has done well for itself, producing nine unicorns and generating tangible returns for investors. In 2025, African startups raised $3.85 billion, a healthy figure highlighting a thriving sector.

However, International VC firms like Sequoia Capital, Tiger Global, and Andressen Horowitz are overly represented, mostly at the expense of local institutional capital. The AFC is looking to fix the gap, as the bulk of its investment might go to local VC firms on the continent.

The AFC has already made anchor commitments to Lightrock Africa Fund II and Future Africa Fund III. The corporation hopes to position itself across the full innovation lifecycle – from early-stage venture capital through to growth-stage scaling.

On a broader scale, the AFC has invested over $19 billion across 36 African Countries since its inception in 2007. The corporation has 48 member countries and is also involved in funding infrastructure across the continent.

The AFC is currently in advanced talks to raise $5 billion for the Lobito Corridor construction phase, with a formal financing launch planned for Q3 2026.

The Lobito Corridor project is a trans african railway spanning across Angola, the Democratic Republic of Congo, and Zambia.

Last updated: May 19, 2026