Afc Launches $100 Million Initiative to Boost African Tech Ownership
The African Finance Corporation (AFC) has unveiled a $100 million investment facilitation initiative aimed at diminishing foreign dominance in Africa’s rapidly expanding startup ecosystem. This strategic move seeks to enhance African ownership of technology companies established within the continent.
Funds Target African-Owned Investment Firms
According to the AFC, these funds will be allocated to Africa-focused technology fund managers, particularly those that are African-owned. The goal is to empower local investors to secure a more substantial role in the continent’s burgeoning digital economy.
Addressing Funding Disparity
This initiative arrives at a time when African startups are drawing billions in investment from abroad, while local institutional investors—including pension funds, insurance companies, and development finance institutions—remain largely absent from the venture capital landscape.
Current Investment Landscape
Notably, Africa has produced nine unicorns and saw startups raise approximately $3.8 billion in 2025. Despite this, a significant portion of the capital still originates from outside the continent. The AFC aims to shift this trend by mobilizing African capital to invest in African technology startups.
Highlighting Digital Transformation
AFC President and CEO Samaira Zubair emphasizes that young Africans are at the forefront of driving digital transformation across the continent. These entrepreneurs are actively building businesses, creating markets, and leveraging technology to address various economic challenges.
Investments in Promising Funds
As part of the program’s initial phase, the AFC has already made strategic investments in Lightrock Africa Fund II and Future Africa Fund III. These investments are designed to support startups from their early developmental stages through to large-scale expansion, focusing on sectors such as fintech, digital infrastructure, consumer technology, artificial intelligence, and educational technology.
Encouraging Local Participation
Pal-Eric Chatil, CEO of Lightrock, expressed that the AFC’s investment reflects a growing confidence in African startups boasting robust business models and clear profitability paths. Iyin Aboyeji, a co-founder of Future Africa, stated that the AFC’s involvement signifies the need to prioritize digital infrastructure as a critical component of Africa’s development. He highlighted that while the continent’s youth are increasingly engaged in the digital economy, they require better access to infrastructure, financing, and necessary tools like smartphones and laptops.
Strategic Vision for Growth
Additionally, Aboyeji noted that the AFC’s initiative could stimulate more active participation from African pension funds, insurance companies, and development finance institutions in venture capital, countering the current trend of leaving funding predominantly in foreign hands. This $100 million commitment is part of the AFC’s broader strategy aimed at driving growth across African economies through an integration of digital platforms and infrastructure investment.
AFC’s Investment Track Record
Since its inception in 2007, the AFC has invested more than $19 billion in various sectors, including transportation, communications, energy, heavy industry, and natural resources, across 36 African nations.
