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Itana and the Africa Finance Corporation (AFC) have formalized a partnership aimed at developing Africa’s inaugural digital economic zone. The collaboration was announced yesterday during the Global Africa Business Initiative (GABI) held alongside the United Nations General Assembly.
The AFC will spearhead the financing of the first phase of the Itana project, which is valued at $100 million. The corporation is working closely with Itana, Future Africa, PwC Nigeria, and the Charter Cities Institute as technical advisers on the Initiative for the Promotion of Digital Economic Zones in Nigeria (DiFZIN).
In August 2024, the Nigerian government established a steering committee to oversee the creation of digital economic zones. Chaired by President Bola Ahmed Tinubu, the committee includes key ministers from finance, justice, industry, trade, investment, and communications, innovation, and digital economy.
Over the past decade, Africa’s digital economy has experienced remarkable growth, with internet users increasing from 216 million in 2015 to 728 million in 2024. Additionally, funding for African startups has surged, with investments climbing from less than $200 million in 2015 to $4 billion in 2023, indicating a rising interest from investors.
However, despite this growth, many African startups have flourished primarily in spite of governmental regulations, rather than because of them. The uncertain regulatory landscape in startup hubs like Nigeria has prompted entrepreneurs and investors to rethink their strategies. Itana aims to change this narrative and catalyze further advancements in the digital economy.
Founded by Luqman Edu (CEO), Coco Liu (COO), and Iyinoluwa Aboyeji, co-founder of Future Africa, Itana is establishing its digital economic zone in Lagos, Nigeria, targeting technology, finance, and service-oriented businesses seeking to operate across the continent.
Free zones, while not a new concept—some of the earliest were established over a century ago—offer regulatory incentives to businesses. These include reduced or waived taxes, full foreign ownership, flexible labor laws, and streamlined business registration processes.
Companies registering as free zone enterprises with Itana will benefit from exemptions from Nigerian tax obligations, including corporate income tax and value-added tax (VAT). They will also be exempt from import duties on physical products and free to conduct transactions in any currency of their choice.
“Itana aims to be to Nigeria and 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 conducting business in Africa, and both local and international enterprises seeking to expand will naturally consider Itana as their entry point,” Edu stated.
Since its inception, Itana has secured $2 million in funding from investors, including Aboyeji’s Future Africa, Promonos Capital, and LocalGlobe. The first phase of the Itana project will involve constructing a tech campus in Nigeria designed to accommodate nearly 5,000 individuals.
The initiative has already attracted over 2,000 digital members, with several businesses obtaining licenses to operate in the zone, while more are in various stages of the application process. Additionally, Itana has launched an app that serves as a comprehensive platform for company registration and business banking, with plans to incorporate visa processing and tax filing features in the future. For under $2,000, companies can register as free zone enterprises via the Itana app.
“AFC is proud to be a pioneer alongside Itana in establishing Africa’s first digital economic zone. This groundbreaking initiative is a significant milestone towards creating a vibrant hub for the African digital economy, reinforcing the Corporation’s dedication to fostering innovation, job creation, and sustainable economic development across the continent,” remarked Samaila Zubairu, President & CEO of the Africa Finance Corporation
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