Itana and African Finance Corporation (AFC) have formally signed an agreement to jointly develop Africa’s first digital economy zone. The partnership was announced yesterday at the Global Africa Business Initiative (GABI) held on the sidelines of the United Nations General Assembly.
AFC led the financing of the first phase of the $100 million Itana project and is already working with Itana, Future Africa, PwC Nigeria and Charter Cities Institute as a technical advisor to the Nigeria Digital Economy Zone Promotion Initiative (DiFZIN).
In August 2024, the Nigerian government launched a steering committee for the establishment of a digital economic zone.
The committee, chaired by President Bola Ahmed Tinubu, also includes the Minister of Finance and the Minister of Justice. Others include the ministers of industry, trade, investment, communications, innovation and digital economy.
Africa’s digital economy has grown at an astronomical rate over the past decade. The number of internet users has tripled from 216 million in 2015 to 728 million in 2024.
Meanwhile, funding for African startups has also increased significantly. The continent’s startups raised less than $200 million in 2015, rising to $4 billion in 2023, indicating growing investor interest.
Despite these growth stories, African startups are growing primarily in spite of, and not because of, government regulations. While the uncertain regulatory environment in startup hubs such as Nigeria is forcing investors and entrepreneurs to rethink their plans, Itana hopes to foster further development of the digital economy.
Co-founded by Luqman Edu (CEO), Coco Liu (COO), and Future Africa co-founder Iyinoluwa Aboyeji, Itana is building a digital economic zone in Lagos, Nigeria, targeting technology, financial, and service-based companies looking to expand their operations across Africa.
Free zones are not new, with some of the earliest free zones starting around the beginning of the 20th century. These economic sectors offer companies regulatory incentives such as reduced or exempt taxes, full foreign ownership, flexible labor laws, and simplified business registration.
Victoria Fakiyah – senior writer
Tech Point Digest
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Companies that register as free zone companies in Itana are exempt from Nigerian tax requirements such as corporate income tax and value added tax. You are also exempt from paying import duties on physical products and are free to receive payments in the currency of your choice.
“Itana is intended to be to Nigeria and Africa what Delaware and Silicon Valley are to the United States, what DIFC is to Dubai, and e-Estonia is to the European Union. Itana is poised to become the gateway to doing business in Africa. Domestic and international companies looking to expand across Africa will inevitably look to Itana as a gateway,” Edu said in a statement.
Since its founding, Itana has raised $2 million from investors including Above Future Africa, Promonos Capital and Local Globe. Phase 1 of the Itana project includes the construction of a tech campus in Nigeria that can accommodate nearly 5,000 people.
We already have over 2,000 digital members, several have obtained licenses to operate in the region, and many more are at various stages of the application process.
We also launched the Itana app, which provides one-stop company registration and business banking. In the future, we also plan to make visa processing and tax filing features available. Businesses can register as a free zone business in the Itana app for less than $2,000.
“AFC is proud to be a pioneer in building Africa’s first digital economy alongside Itana. This unprecedented initiative marks a pivotal step towards building a thriving hub for Africa’s digital economy and strengthens the Corporation’s commitment to fostering innovation, job creation and sustainable economic development across Africa,” said Samaira Zubair, President and CEO of Africa Finance Corporation.
