Itana, a Lagos-based tech company, and the Africa Finance Corporation (AFC) have announced a partnership to develop Africa’s first digital economic zone. The initiative, valued at $100 million for its first phase, was unveiled at the Global Africa Business Initiative (GABI) during the United Nations General Assembly.The AFC will lead the financing of the project while working alongside Itana, Future Africa, PwC Nigeria, and the Charter Cities Institute. These entities are part of the Initiative for the Promotion of Digital Economic Zones in Nigeria (DiFZIN), established to advance Nigeria’s digital economy.In August 2024, the Nigerian government inaugurated a steering committee for digital economic zones, chaired by President Bola Ahmed Tinubu. This committee includes key ministers from finance, justice, industry, trade, innovation, and digital economy sectors.
Addressing Challenges in Africa’s Digital Economy
Africa’s digital economy has grown exponentially, with Internet users tripling from 216 million in 2015 to 728 million in 2024. Startup funding has also surged from under $200 million in 2015 to $4 billion in 2023, highlighting a robust entrepreneurial ecosystem.Despite this progress, startups often face regulatory challenges, particularly in hubs like Nigeria. This has led to investor hesitation. Itana aims to mitigate these hurdles by creating a business-friendly environment to drive digital and economic growth.
Vision for the Digital Economic Zone
Founded by Luqman Edu (CEO), Coco Liu (COO), and Iyinoluwa Aboyeji, co-founder of Future Africa, Itana’s digital economic zone is designed to attract tech, finance, and service-oriented businesses operating across Africa.Businesses registering in the zone will benefit from numerous incentives, including exemptions from corporate income tax, value-added tax, and import duties. Additionally, companies will be able to transact in any currency.“Itana intends to be for Africa what Delaware and Silicon Valley are to the U.S., the DIFC is to Dubai, and e-Estonia is to the European Union. Itana is positioned as the gateway for businesses expanding across Africa,” said Edu.
Project Highlights and Progress
Since its inception, Itana has secured $2 million in funding from investors like Future Africa, Promonos Capital, and LocalGlobe. The first phase of the project will include the construction of a tech campus in Lagos designed to accommodate approximately 5,000 individuals.The platform currently has over 2,000 digital members, and several businesses have already obtained licenses to operate in the zone, with more applications underway.Itana has also launched an app that simplifies company registration and business banking. Future updates will include visa processing and tax filing services. Registration as a free zone enterprise costs under $2,000 through the app.
AFC’s Commitment to Innovation
Samaila Zubairu, President and CEO of the AFC, highlighted the partnership’s significance. “AFC is proud to pioneer alongside Itana in building Africa’s first digital economic zone. This initiative represents a pivotal step toward fostering innovation, job creation, and sustainable economic development across the continent,” he said.This project is expected to position Itana as a critical hub for businesses entering and expanding within Africa’s digital economy.
