An official agreement has been reached between Itana and the Africa Finance Corporation (AFC) to collaboratively construct Africa’s first digital economic zone. Yesterday, at the Global Africa Business Initiative (GABI) on the fringes of the UN General Assembly, the alliance was unveiled.
In addition to working with Itana, Future Africa, PwC Nigeria, and Charter Cities Institute as technical advisers to the Initiative for the Promotion of Digital Economic Zones in Nigeria (DiFZIN), the AFC will spearhead the financing of the $100 million first phase of the Itana initiative.
The Nigerian government established a steering group to oversee the creation of digital economic zones in August 2024.
The committee is presided over by President Bola Ahmed Tinubu, and its members include the ministers of justice and finance. The ministries of commerce, industry, and investment as well as those of communications, innovation, and the digital economy are among the others.
An official agreement has been reached between Itana and the Africa Finance Corporation (AFC) to collaboratively construct Africa’s first digital economic zone. Yesterday, at the Global Africa Business Initiative (GABI) on the fringes of the UN General Assembly, the alliance was unveiled.
In addition to working with Itana, Future Africa, PwC Nigeria, and Charter Cities Institute as technical advisers to the Initiative for the Promotion of Digital Economic Zones in Nigeria (DiFZIN), the AFC will spearhead the financing of the $100 million first phase of the Itana initiative.
The Nigerian government established a steering group to oversee the creation of digital economic zones in August 2024.
The committee is presided over by President Bola Ahmed Tinubu, and its members include the ministers of justice and finance. The ministries of commerce, industry, and investment as well as those of communications, innovation, and the digital economy are among the others.
Over the past ten years, Africa’s digital economy has grown at an exponential rate. In 2024, there will be 728 million Internet users worldwide, a threefold increase from the 216 million in 2015.
Funding for African entrepreneurs has increased significantly concurrently. The continent’s startups have raised $4 billion in 2023 compared to less than $200 million in 2015, indicating a rise in investor enthusiasm.
In spite of these success stories, government rules have not contributed to the growth of African entrepreneurs; rather, they have flourished in spite of them. Although investors and entrepreneurs have had to reevaluate their plans due to an unclear regulatory environment in startup hotspots like Nigeria, Itana intends to encourage further advancements in the digital economy.
Itana, which targets tech, finance, and service-based companies looking to expand throughout Africa, is developing a digital economic zone in Lagos, Nigeria. It was cofounded by Luqman Edu, the CEO, Coco Liu, the COO, and Iyinoluwa Aboyeji, the co-founder of Future Africa.
Free zones are nothing new; some of the first ones were established at the beginning of the 20th century. Businesses can benefit from favourable regulations in these economies, including zero-tax or reduced taxes, complete foreign ownership, lenient labour rules, and streamlined business registration.
Companies who register with Itana as a free zone firm would not be subject to value-added tax or corporate income tax in Nigeria. In addition, they would not have to pay import taxes on tangible goods and may accept payments in whichever currency they want.
“Itana aims to become for Nigeria and Africa what e-Estonia is to the European Union, Delaware & Silicon Valley is to the United States, and the DIFC is to Dubai.” Positioned as the entry point for conducting business in Africa is Itana. Itana will inevitably be the first port of entry for domestic and foreign companies wishing to grow throughout Africa, according to a statement from Edu.
Itana has raised $2 million from investors since its founding, including Promonos Capital, LocalGlobe, and Aboyeji’s Future Africa. The construction of a tech campus in Nigeria that can accommodate close to 5,000 people is a key component of the Itana project’s first phase.
It currently has more than 2,000 digital members, and some companies have licenses to operate in the area; more are pending application.
The Itana app, a one-stop shop for business banking and company registration, has also been released. It intends to make tax filing and visa processing possible in the future. Businesses can sign up on the Itana app to become a free zone enterprise for less than $2,000.
“AFC is honoured to be leading the way in creating Africa’s first digital economic zone with Itana. Samaila Zubairu, President & CEO of Africa Finance Corporation, stated that “this extraordinary initiative marks a pivotal step towards creating a thriving hub for the African digital economy, cementing the Corporation’s commitment to driving innovation, job creation, and sustainable economic development across the continent.”
