African artificial intelligence startups could attract more investment as venture capital firm Enza Capital launches a dedicated fund to support businesses developing and applying AI technology across the continent. The move reflects growing interest in building AI solutions that address Africa’s unique business, infrastructure and technology challenges.
Unlike investors focused on developing large AI models from scratch, Enza Capital plans to support startups adapting artificial intelligence to African markets. Its investment strategy will prioritise businesses using local languages, regional data and technology designed to operate within the continent’s infrastructure limitations. This includes solutions that can address challenges such as unreliable internet connectivity and the cost of computing resources.
The Nairobi-based investment firm has already established a presence in Africa’s technology ecosystem. According to reports, Enza Capital has raised $58 million across its first two funds and made 75 investments in 47 companies across nine African countries. Its existing AI investments include companies such as Hakimu AI, Lua and Aethex AI. However, the firm has not disclosed the size of its newly launched AI fund.
Managing Partner Mike Mompi described artificial intelligence as one of the most significant technology shifts of the current generation, highlighting the opportunity to create value through its development and adoption across Africa. The firm is also looking beyond financial investment by providing technical support and connecting developers through initiatives such as AI Tinkerers, which has communities in cities including Lagos, Nairobi, Cairo and Johannesburg.
The launch comes as African startups continue to explore ways to apply artificial intelligence to industries such as healthcare, education, finance and business operations. By directing investment towards locally developed solutions, Enza Capital hopes to support companies building technology that responds to the needs of African users. Its latest move also highlights the growing importance of specialised funding in helping the continent’s AI ecosystem develop and compete in the global technology market.