Africa Finance Corporation (AFC) has approved a commitment of up to $100 million to invest in Africa-focused technology fund managers, with initial allocations going to Lightrock Africa Fund II and Future Africa Fund III as the institution increases its exposure to the continent’s digital economy.

“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.

The move comes as African technology companies continue to attract investor attention despite tighter global venture capital conditions.

AFC said Africa’s digital economy is projected to contribute more than $700 billion to GDP by 2050, supported by demographic growth, rising connectivity and expanding adoption of digital services across sectors.

The corporation said the new initiative is designed to address the limited participation of African institutional capital in venture and growth-stage investing.

While African start-ups raised $3.8 billion in 2025 and several technology-focused fund managers have generated outsized returns, most venture funding on the continent still originates from international investors.

AFC said the capital will be directed primarily toward African-owned fund managers spanning early-stage and growth-stage investing.

The institution intends to use its balance sheet to catalyse broader participation from African pension funds, insurers and other institutional investors.

The first commitments under the programme include an anchor investment in Lightrock Africa Fund II, which focuses on growth-stage technology companies, and Future Africa Fund III, which targets earlier-stage businesses.

Pal Erik Sjatil, Managing Partner and CEO of Lightrock, said AFC’s commitment reflected “a shared conviction in the opportunity to back high-growth, technology-enabled businesses with proven business models, strong fundamentals, and clear pathways to profitability”.

Lightrock has previously invested in African technology companies including Moniepoint, Lula and M-KOPA.

Future Africa Fund III will focus on founders building businesses in sectors including financial inclusion, digital infrastructure, consumer technology and education.

Iyin Aboyeji, Founding Partner at Future Africa, said: “Young Africans are not waiting for the digital economy to arrive; they are already among its most active participants globally. What they need now are the skills, productive assets and infrastructure to build and scale within it.”

He added that AFC’s backing sends “a clear signal that digital is as fundamental to Africa’s transformation as agriculture, manufacturing and physical infrastructure.”

AFC said the technology fund initiative forms part of its broader strategy of investing across integrated infrastructure systems, where digital platforms increasingly support trade, logistics, payments, data services and industrial activity across the continent.

The corporation is also evaluating additional investments in Africa-focused funds across different strategies and stages, with further commitments expected over time.