For nearly two decades, Africa Finance Corporation (AFC) wrote cheques for bridges, ports, mines, and subsea cables. Now, the $19 billion Africa-focused development finance institution is doing something its own board initially resisted: betting $100 million on African venture capital.
Future Africa, the early-stage venture capital firm, and LightRock Africa, an impact investment firm, have received a combined $40 million anchor commitment from AFC, making them the first firms to raise capital from an unlikely backer of African venture capital.
Begna Gebreyes, the head of AFC’s technology division, is leading this pivot into tech investing for one of the largest Africa-focused development financial institutions.
Future Africa, the fund led by renowned tech founder and investor Iyin Aboyeji, is getting $15 million, and LightRock Africa will get $25 million as the first deployments from a $100 million fund the AFC has earmarked for African venture capital.
While the AFC has previously backed African startups, it is the first time that the AFC is investing directly into an African tech venture capital firm, a pivot from writing cheques for bridges, ports, mines, and subsea cables.
