Africa Finance Corporation Commits $100 Million to Tech Funds as African Startups Face 26.6% Funding Drop
Updated
Updated · msmeafricaonline.com · May 14
Africa Finance Corporation Commits $100 Million to Tech Funds as African Startups Face 26.6% Funding Drop
8 articles · Updated · msmeafricaonline.com · May 14
$100 million in AFC capital will go to Africa-focused technology fund managers, with early anchor commitments already made to Lightrock Africa Fund II and Future Africa Fund III.
The push targets a chronic shortage of patient institutional capital that has left African venture funding dominated by foreign investors despite rising digital adoption and startup growth.
AFC said the strategy backs the full innovation cycle—from early-stage venture funding to growth-stage scaling—and gives particular weight to African-owned fund managers to deepen local ownership.
The move comes as Africa's digital economy is projected to exceed $700 billion of GDP by 2050, even as startup funding softened to $110.4 million across 34 deals in April from $150.5 million in March.
African startups still drew about $3.8 billion in 2025 and produced nine unicorns, but AFC hopes its first-mover role will pull in more pension funds, insurers and development financiers.
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