Africa Finance Corporation, the development bank with over $19 billion in total assets, has committed $40 million to Future Africa, an early-stage venture capital firm, and Lightrock Africa, the London-headquartered impact investment firm with investments in Moniepoint and M-Kopa.
The commitment is part of a larger $100 million fund created within AFC’s telecommunications and technology department to invest in African tech venture capital managers.
Funding from development finance institutions (DFIs) like the AFC has long served as the backbone of startup investing on the continent, but it fell to 27% of total commitments in 2025, according to the African Private Capital Association.
By deploying the equivalent of 3% of last year’s total African startup funding into tech-focused fund managers, the $100 million fund from the AFC, an Africa-focused development bank, could trigger a fresh wave of institutional investment in African tech.
That wave would be timely, as the amount raised by African venture capital fell for the first time in four years, with Africa-focused fund managers raising just $107 million across six final closes in 2025, an 87% year-on-year drop by value, according to the African Private Capital Association.
