NAIROBI — Pan-African venture capital firm Enza Capital has reached a first close of about $21 million for its third fund, a vehicle dedicated to artificial intelligence companies on the continent.
The AI Africa Fund has secured 35% of its $60 million target and has a hard cap of $80 million, Disrupt Africa reported. Enza expects more commitments before the end of the year and plans a final close in 2027.
What the fund will back
The fund will invest in AI-native and AI-enabled companies tackling large economic and social problems in Africa, as well as African-founded businesses that could compete globally. It will write first cheques of generally $250,000 to $3 million, from pre-seed to Series B, and keep reserves for follow-on rounds.
Target sectors include financial services, healthcare, enterprise technology, education, agriculture, climate and emerging infrastructure. First investments are planned for 2027.
Founded in 2019, Enza has backed 49 technology companies in 10 African countries through its first two funds. It recorded its first realised exit in 2025, when hospital group Netcare took a controlling stake in Quro Medical, a South African company that uses remote monitoring to deliver hospital-level care at home.
The investment thesis
Co-founder and managing partner Mike Mompi argued that AI changes the economics of serving African markets. “For decades, businesses have struggled to serve large parts of Africa’s population economically,” he said. “Fragmented markets, limited infrastructure, expensive distribution and shortages of skilled professionals have made many otherwise valuable solutions commercially unviable. AI fundamentally changes that equation.”
The bet is that cheaper software development and automated service delivery can make products viable at price points that were previously too low to support a business.
A crowded week for African AI
The close lands in a busy period. Google this week named the first 10 startups for its Africa Applied AI Lab in Accra, including Nigerian firms Intron, Termii and Vendy and pan-African identity company Smile ID, with venture partners 4DX Ventures, Norrsken22, Novastar Ventures and Ventures Platform. Earlier, the African Development Bank and UNDP said they aimed to mobilise $1 billion a year for 10 years to speed AI deployment on the continent, The Africa Report noted.
Funding remains small by global standards. Enza’s full target would be a fraction of a single late-stage round in Silicon Valley, and founders still face high cloud costs priced in dollars.
What it means for African readers
For founders, a dedicated early-stage AI fund with cheques of up to $3 million fills a gap between angel money and growth rounds. Fintech teams using AI for credit scoring, fraud detection, customer support or compliance fall squarely within its stated focus.
For the wider economy, the test will be whether AI-first startups create local jobs and lower prices, or mainly automate work. Watch which companies Enza backs first in 2027, and whether more African limited partners, such as pension funds, join later closes.
Enza has not named the limited partners in its first close. Founders interested in the fund should note that it intends to reserve capital for follow-on rounds, which can matter as much as the first cheque.
