The Africa Finance Corporation (AFC) has announced plans to invest $100 million into Africa-focused technology venture capital funds, in a move aimed at strengthening early-stage startup financing and deepening institutional capital participation in the continent’s tech ecosystem.
The initiative will be deployed as a fund-of-funds programme, targeting selected venture capital managers that invest across African startups, particularly in sectors such as fintech, infrastructure technology, logistics, and digital services.
As part of the initial allocation, AFC has committed $25 million to Lightrock Africa and $15 million to Future Africa, both of which focus on backing high-growth startups across the continent. The remaining $60 million will be distributed among additional fund managers currently being evaluated.
AFC officials said the programme is designed to address the declining availability of venture capital funding for African startups, which has recently faced sharp contractions due to global macroeconomic pressures and reduced foreign investor appetite.
By deploying capital through established fund managers, AFC aims to crowd in additional institutional investors, including pension funds, development finance institutions, and global asset managers, thereby expanding the overall pool of investment available to African tech companies.
The initiative also reflects a broader strategic shift by AFC, traditionally known for infrastructure financing, into technology and innovation-driven sectors that are increasingly seen as key drivers of Africa’s long-term economic growth.
According to AFC, African startups raised about $3.4 billion in 2025, but funding remains heavily concentrated in a few markets, including Nigeria, Kenya, Egypt, and South Africa, which together attract the majority of venture capital inflows. Analysts say the new fund could help stabilize Africa’s venture ecosystem at a time when global startup funding has slowed, while also improving access to growth capital for early-stage founders.
