AFC Backs Next Wave of African Tech Investment

The Africa Finance Corporation (AFC), a development finance institution with over $19 billion in assets, is making a significant foray into venture capital. The corporation has committed $40 million to Future Africa and Lightrock Africa, signaling a strategic shift from its traditional infrastructure focus.

This commitment forms part of a larger $100 million fund established within AFC’s telecommunications and technology department—a move that could catalyze renewed institutional investment in African tech. While DFIs have historically supported startup ecosystems, their share has been declining; this new program aims to reverse that trend.

Strategic Investments

AFC’s initial investments include $25 million for Lightrock Africa (which previously backed Moniepoint and M-Kopa) and $15 million for Future Africa. The corporation still has $60 million available to invest in additional fund managers it is currently evaluating.

This represents a departure from AFC’s established mandate, which primarily focused on infrastructure projects like oil & gas, mining, and telecom networks. However, the move addresses a critical gap in the African tech funding landscape—particularly as capital raised by venture firms fell sharply last year amid growing selectivity from international investors.

Addressing Funding Gap

African startups absorbed $3.4 billion in 2025, with Nigeria, South Africa, Kenya, and Egypt accounting for 82% of the total. The AFC’s program is designed to help close this gap by supporting fund managers who invest across various stages—from pre-seed through growth.

The corporation plans to leverage its commitment as an anchor for a parallel $300-$500 million co-investment program targeting US and European foundations, endowments, and pension funds. This approach would provide institutional investors with access to African tech exposure while benefiting from AFC’s on-the-ground expertise.

By offering this credibility bridge, the AFC aims to unlock a new wave of capital for African startups at a critical moment when funding is tightening.