The Africa Finance Corporation (AFC) has launched a $100 million investment push aimed at reducing foreign dominance in Africa’s fast-growing startup ecosystem and increasing African ownership of technology companies built on the continent.
The corporation said the funding will be channelled into Africa-focused technology fund managers, especially African-owned investment firms, to help local investors take a stronger position in the continent’s digital economy.
The move comes at a time when African startups continue to attract billions of dollars from foreign investors, while local institutional investors such as pension funds, insurance firms, and development finance institutions remain largely absent from venture capital financing.
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Although Africa has produced nine unicorns and startups raised about $3.8 billion in 2025, most of the capital still comes from outside the continent.
AFC said its new commitment is designed to change that trend by mobilising African capital into African technology businesses.
Samaila Zubairu, president and chief executive officer of AFC, said young Africans are already driving digital transformation across the continent by building businesses, creating markets, and solving economic problems with technology.
According to him, the challenge is no longer talent or innovation, but the shortage of long-term African institutional capital needed to scale those businesses.
He described digital infrastructure as a critical part of Africa’s future economy, saying it now plays the same strategic role as roads, ports, rail systems, and electricity infrastructure.
As part of the first phase of the programme, AFC has already made anchor investments in Lightrock Africa Fund II and Future Africa Fund III.
The investments are expected to support startups from early-stage development to large-scale expansion across sectors including fintech, digital infrastructure, consumer technology, artificial intelligence, and education technology.
Pal Erik Sjatil, chief executive officer of Lightrock, said AFC’s investment reflects growing confidence in African startups with strong business models and clear paths to profitability.
He noted that the partnership would help scale technology companies capable of delivering both financial returns and social impact.
Meanwhile, Iyin Aboyeji, Nigerian entrepreneur and Future Africa founding partner, described AFC’s commitment as a major signal that digital infrastructure should now be treated as a core development priority for Africa.
He said the continent’s young population is already deeply involved in the digital economy but needs better access to infrastructure, financing, and productive tools such as smartphones, laptops, energy, and connectivity.
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Aboyeji added that AFC’s intervention could encourage more African pension funds, insurers, and development finance institutions to participate in venture capital financing instead of leaving the sector almost entirely in foreign hands.
The $100 million commitment forms part of AFC’s broader strategy to combine digital platforms with physical infrastructure investments to unlock growth across Africa’s economies.
Founded in 2007, AFC has invested more than $19 billion across 36 African countries in sectors including transport, telecommunications, energy, heavy industry, and natural resources.
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