Nigerian digital zone management company, Itana, and Africa Finance Corporation (AFC) have signed an agreement to develop Africa’s first digital economic zone in Lagos, the nation’s commercial capital.
The project, designed to facilitate global and pan-African technology, finance, and service-based businesses, was formalised during the Global Africa Business Initiative (GABI) at the United Nations General Assembly in New York.
The Itana Digital Economic Zone, set to be located in Lagos, Nigeria, is intended to offer companies a remote platform for incorporation and operations within Africa.
The Itana Digital Economic Zone aims to be a gateway for businesses seeking to expand across Africa. According to its promoters, the zone offers services such as business visa facilitation, local bank account setup, and a curated marketplace of trusted vendors. Companies meeting certain criteria can register as Free Zone Enterprises (FZE), giving them access to tax incentives, ease of capital repatriation, and special work permits without expatriate quota restrictions.
AFC back first phase of Itana Digital Economic Zone with $100m
According to a statement from AFC, businesses in the zone will benefit from optimised laws, tax incentives, immigration benefits, and banking services specifically designed for the digital economy.
The first phase of the project is budgeted at $100 million, with AFC providing project development funding. The plan includes the construction of an eco-friendly tech campus in Lagos, as well as support for startups via Itana’s accelerator programme, Accelerate Africa, developed in partnership with Future Africa.
“Africa’s digital economy is poised for significant expansion and innovation following the rapid adoption of mobile technology, a burgeoning youth population, and the growing importance of digital commerce and services,” Samaila Zubairu, AFC President & CEO said.
“In support of this,” Zubairu added, “AFC is proud to be a pioneer alongside Itana, in building Africa’s first digital economic zone. This unprecedented 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.”
The Itana Digital Economic Zone aims to be a gateway for businesses seeking to expand across Africa. According to its promoters, the zone offers services such as business visa facilitation, local bank account setup, and a curated marketplace of trusted vendors. Companies meeting certain criteria can register as Free Zone Enterprises (FZE), giving them access to tax incentives, ease of capital repatriation, and special work permits without expatriate quota restrictions.
There would also be the Itana District, their first location, a 72,000 sqm district in Alaro City, Lagos is essentially a live-work tech campus in Alaro City, a mixed-use city in the Lekki Free Zone.
“Itana intends to be to Nigeria and Africa what Delaware & Silicon Valley is to the U.S., the DIFC is to Dubai, and e-Estonia is to the European Union,” Luqman Edu, CEO of Itana, said.
“Itana” according to Edu, is poised as the gateway to doing business in Africa. Local and International businesses looking to expand their operations across Africa will naturally look to Itana as their point of entry.”
The partnership between Itana and AFC comes at a time when Nigeria is aiming to strengthen its digital economy. The Nigerian government has been actively promoting the establishment of digital economic zones, through the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN), a non-profit organisation working with Itana, AFC, PwC Nigeria, and others to shape policy and advocacy for these zones.
Back in August, the Nigerian Federal Government launched an initiative to establish Digital Free Zones to position the country as a hub for global digital trade and innovation. A steering committee, chaired by President Bola Ahmed Tinubu, was inaugurated to oversee the development of these zones, aimed at attracting tech, finance, and service-oriented businesses to operate in a digital-friendly environment.
According to Mr Wale Edun, Vice Chairman of the Steering Committee and Nigeria’s Minister of Finance and Coordinating Minister of the Economy,, “the pivotal role of free zones in catalysing and sustaining economic growth in Nigeria cannot be overemphasised. In this digital age, we must integrate technology-focused businesses to attract investments and showcase our domestic talents under a liberal regulatory framework.” The Government, he added, “aims to deliver these benefits through the digital free zones.”
In 2023, Itana raised significant venture capital funding from leading investors, including LocalGlobe, Amplo, Pronomos Capital (backed by Peter Thiel), Balaji, and Future Africa (led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave).
For a total fee of $1,850 ($1,650 if paid upfront), businesses can complete the registration and begin operating in the Itana Digital Zone. To register a Free Zone Enterprise (FZE) in the Itana Digital Zone in Nigeria, businesses need to follow a straightforward process. The registration includes steps like filling out the application form, submitting incorporation documents, and paying the required fees. The process begins on the Itana web app, where businesses can enter their company details and shareholding information.
Itana’s vision is quite similar to global digital zone initiatives like Dubai International Financial Centre (DIFC) and e-Estonia, which have created seamless environments for international businesses.
Itana says it aims to make Nigeria a powerhouse in the global digital economy. With AFC’s backing, the zone is expected to attract foreign investment and boost the region’s infrastructure and digital capabilities.
The first phase of the zone is expected to be completed by 2025.
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