Africa’s Digital Economy, Itana and African Finance Corporation (AFC) have formally agreed to collaborate in establishing Africa’s first digital economy zone. This landmark partnership, announced at the Global Africa Business Initiative during the United Nations General Assembly, marks a pivotal moment in Africa’s technological progress.
AFC will lead the initial stage financing of the $100 million Itana project. This initiative is in line with Nigeria’s recent efforts to promote a digital economy, as evidenced by the establishment of a steering committee by the Nigerian government in 2024. The committee, headed by President Bola Ahmed Tinubu, includes key ministers from finance, judiciary, industry, trade, investment, economy and industry. Communication, innovation and digital economy sector.
Africa’s digital landscape has experienced impressive growth over the past decade. The number of Internet users has tripled from 216 million in 2015 to 728 million in 2024. At the same time, funding for African startups has also surged, rising from less than $200 million in 2015 to $4 billion in 2023, reflecting growing investor interest in the region’s potential.
However, this growth has often occurred despite regulatory challenges rather than because of a supportive framework. Itana aims to address this issue by creating a more favorable environment for digital business. Co-founded by Luqman Edu, Coco Liu, and Iyinoluwa Aboyeji, Itana is developing a digital economy zone in Lagos, Nigeria, targeting technology, finance, and service-based businesses looking to expand across Africa.
The concept of free zones is not new, with early examples dating back to the early 20th century. These areas provide companies with regulatory incentives such as tax breaks, foreign ownership allowances, flexible labor laws, and simplified registration processes. In Itana’s free zone, registered companies are exempt from Nigeria’s tax requirements, import duties and currency restrictions.
Edu envisions Itana to be to Nigeria and Africa what Delaware and Silicon Valley are to the United States, what DIFC is to Dubai, and what Electronic Estonia is to the European Union. The project is intended to serve as a gateway for domestic and international businesses 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 involves the construction of a tech campus in Nigeria designed to accommodate nearly 5,000 people. Itana has already acquired more than 2,000 digital members and issued licenses to several companies, with more applications in progress.
The company also launched the Itana app, which provides 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, businesses can register as free zone businesses through the app.
Samaira Zubair, President and CEO of AFC, expressed pride in being a pioneer in this initiative together with Itana, creating a thriving hub for Africa’s digital economy and innovating across the continent. , emphasized the potential to create jobs and promote sustainable economic development.
This collaboration between Itana and AFC represents an important step towards establishing Africa as a major player in the global digital economy, with the potential to transform the continent’s business environment and attract international investment and talent. .
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