$100m Itana Digital Economic Zone to open in Lagos

Itana, Nigeria’s pioneering licensed digital economic zone management firm, in collaboration with Africa Finance Corporation (AFC), the foremost provider of infrastructure solutions on the continent, has reached an agreement to co-develop Africa’s inaugural digital economic zone. This zone is specifically designed to facilitate the operations and expansion of global and Pan-African technology, finance, and service-oriented enterprises, thereby enhancing the continent’s digital economy. The official announcement of this partnership occurred yesterday in the presence of international government and business leaders during the Global Africa Business Initiative (GABI), held alongside the ongoing United Nations General Assembly (UNGA) in New York.

The Itana Digital Economic Zone, located in Lagos, Nigeria, aims to function as an online jurisdiction, providing a gateway for establishing a global business presence in Nigeria. Through Itana, businesses can remotely register and manage their operations within the zone, benefiting from laws, business incentives (including tax, immigration, and banking), and services tailored to the digital economy. This initiative will be complemented by sustainable live-work communities and a residential accelerator program, exemplifying the future of urban development in Africa and offering the necessary infrastructure and support for businesses to grow and compete on a global scale.

AFC will provide project development funding to Itana and plans to spearhead the financing for the initial phase of the Itana project, which is estimated to cost approximately $100 million. This phase will encompass the establishment of an eco-friendly technology campus in Lagos, Nigeria, as well as funding for startups participating in Accelerate Africa, Itana’s accelerator program in collaboration with Future Africa. Additionally, AFC will assist in the implementation of the Itana Digital Economic Zone for global and Pan-African technology, finance, and service-based companies aiming to operate throughout Africa.

Itana and AFC are currently collaborating with Future Africa, PwC Nigeria, and the Charter Cities Institute, serving as technical advisers to the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN). This initiative is a non-profit advocacy and policy research organization that represents the private sector within the newly established Nigerian Federal Government steering committee, which is focused on creating Digital Economic Zones in Nigeria. The committee is chaired by President Bola Tinubu and comprises relevant government ministers and agency heads.

Itana aims to create a supportive environment designed for the digital trade and technological landscape of the 21st century. The organization has recently introduced the Itana Application, which allows individuals to join the community and access various events and services, including business visa facilitation, local bank accounts, and a curated marketplace featuring reliable vendors and consultants for conducting business in Africa. Eligible businesses can easily register as Free Zone Enterprises (FZEs) and will be granted a Business Operating License, enabling them to operate in Nigeria, similar to several digital companies such as Reliance Info and Future Africa.

Once businesses are incorporated, they can function within the zone while benefiting from tax incentives and capital repatriation. They will also gain access to the Itana business community, have the opportunity to apply for business banking within the Digital Economic Zone, and obtain special work and residency permits without the restrictions typically associated with expatriate quotas.

Itana aims to establish itself as the equivalent of Delaware and Silicon Valley for Nigeria and Africa, akin to the role of the DIFC in Dubai and e-Estonia within the European Union, stated Luqman Edu, CEO of Itana. He emphasized that Itana is strategically positioned to serve as the primary gateway for businesses, both local and international, seeking to expand their operations throughout Africa.

According to Samaila Zubairu, President & CEO of Africa Finance Corporation, the digital economy in Africa is on the brink of substantial growth and innovation, driven by the swift adoption of mobile technology, a rapidly growing youth demographic, and the increasing significance of digital commerce and services. He expressed pride in AFC’s role as a pioneer alongside Itana in the establishment of Africa’s inaugural digital economic zone. This groundbreaking initiative represents a crucial advancement towards developing a vibrant hub for the African digital economy, reinforcing the Corporation’s dedication to fostering innovation, job creation, and sustainable economic progress across the continent.

Last year, Itana revealed a funding round supported by prominent technology venture capital firms and influential leaders in the tech industry, including LocalGlobe, Amplo, Pronomos Capital (associated with Peter Thiel), Balaji, and Future Africa, led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave.

As the first Digital Economic Zone, Itana is dedicated to transforming Nigeria into a significant player in the global digital economy. This initiative will be situated in Alaro City, a comprehensive, mixed-use development spanning over 2,000 hectares within the Lekki Free Zone.