Sylvia Duruson
Africa’s digital economy, Itana and the Africa Finance Corporation (AFC) have formally agreed to collaborate on establishing the continent’s first digital economic zone. This landmark partnership, unveiled at the Global Africa Business Initiative during the United Nations General Assembly, marks a pivotal moment in Africa’s technological advancement.
The AFC will spearhead the financing of the Itana project’s initial phase, valued at $100 million. This initiative aligns with Nigeria’s recent efforts to promote digital economic zones, as evidenced by the government’s formation of a steering committee in 2024. The committee, led by President Bola Ahmed Tinubu, includes key ministers from finance, justice, industry, trade, investment, communications, innovation, and digital economy sectors.
Africa’s digital landscape has undergone remarkable growth over the past decade. Internet usage has tripled from 216 million users in 2015 to 728 million in 2024. Concurrently, funding for African startups has skyrocketed, rising from under $200 million in 2015 to $4 billion in 2023, reflecting heightened investor interest in the region’s potential.
However, this growth has often occurred despite regulatory challenges rather than because of supportive frameworks. Itana aims to address this issue by creating a more conducive environment for digital businesses. Co-founded by Luqman Edu, Coco Liu, and Iyinoluwa Aboyeji, Itana is developing a digital economic zone in Lagos, Nigeria, targeting tech, finance, and service-based businesses looking to operate across Africa.
The concept of free zones is not new, with early examples dating back to the early 20th century. These areas offer businesses regulatory incentives such as tax breaks, foreign ownership allowances, flexible labor laws, and simplified registration processes. Itana’s free zone will exempt registered enterprises from Nigerian tax requirements, import duties, and currency restrictions.
Edu envisions Itana becoming for Nigeria and Africa what Delaware and Silicon Valley are to the U.S., DIFC to Dubai, and e-Estonia to the European Union. The project aims to serve as a gateway for local and international businesses expanding across Africa.
Since its inception, Itana has secured $2 million in funding from investors including Future Africa, Promonos Capital, and LocalGlobe. The first phase of the project includes constructing a tech campus in Nigeria, designed to accommodate nearly 5,000 people. Itana has already attracted over 2,000 digital members and issued licenses to several businesses, with more applications in progress.
The company has also launched the Itana app, offering a comprehensive platform for company registration and business banking. Future plans include adding visa processing and tax filing capabilities. For a fee of less than $2,000, companies can register as free zone enterprises through the app.
AFC President & CEO Samaila Zubairu expressed pride in pioneering this initiative alongside Itana, emphasizing its potential to create a thriving hub for the African digital economy and drive innovation, job creation, and sustainable economic development across the continent.
This collaboration between Itana and AFC represents a significant step towards establishing Africa as a major player in the global digital economy, potentially transforming the continent’s business landscape and attracting international investment and talent.
