$100 Million Support for Africa’s Digital Economy
Africa Finance Corporation (AFC), one of Africa’s leading development finance institutions, announced that it will invest up to $100 million in Africa-focused technology funds to grow the continent’s digital economy. The new investment program aims to support technology startups, digital infrastructure and Africa-based fund managers.
In the statement made by AFC, it was stated that the investment was designed to accelerate the digital transformation process in Africa and increase the share of local capital in the technology ecosystem.
The Digital Economy Is Expected to Reach $700 Billion in 2050
According to the institution, Africa’s digital economy is expected to contribute more than $700 billion to the continent’s economy by 2050. The rapid increase in the young population, growth in mobile internet usage and rising demand for digital services are cited as determining factors in the investment decision.
AFC President and CEO Samaila Zubairu stated that the young population in Africa is becoming a direct part of this transformation instead of waiting for digital transformation, and made the following statement: “Young Africans are not waiting for the digital economy to arrive. By adopting technology, they are creating new markets and producing solutions to real economic problems. This gives a strong investment signal.” Zubairu also emphasized that digital infrastructure has now become as critical as roads, ports, energy and railways.
First Investments in Lightrock Africa and Future Africa Funds
In the first phase of the $100 million investment program, AFC invested as an “anchor investor” in Lightrock Africa Fund II and Future Africa Fund III. Thus, it was announced that the institution would support funds investing at different levels, from early-stage ventures to growth-stage technology companies. The company announced that it will continue to evaluate new Africa-focused technology funds with different strategies in the coming period.
Africa’s Startup Ecosystem Is Gaining Strength
According to AFC data, the startup ecosystem in Africa has gained significant momentum in recent years. While 9 unicorn ventures have emerged across the continent to date, some Africa-based fund managers have achieved returns of up to 128 times on their investments. It was also stated that African startups received a total of $3.8 billion in investment in 2025 alone.
Despite this, it is stated that a large portion of venture capital investments still comes from international investors. AFC’s new investment program aims to increase local capital participation and enable Africa-based investors to play a stronger role in the technology ecosystem. The institution’s investment strategy includes not only venture financing, but also AI-focused talent development, digital infrastructure investments, data centers, connectivity technologies and device financing. In particular, it is aimed to include more people in the digital economy by increasing access to phones, computers and connectivity infrastructure.