AFC partners with Itana for the creation of Africa’s first digital economic zone
Itana, Nigeria’s first licensed digital economic zone management company, and the Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, have agreed to jointly develop the first digital economic zone in Africa – unlocking the continent’s digital economy.
The formalisation of this partnership took place at the Global Africa Business Initiative, on the sidelines of the United Nations General Assembly in New York.
The Itana Digital Economic Zone in Lagos, Nigeria is intended as an online jurisdiction and to serve as a gateway to build a global business in Nigeria. Through Itana, companies can remotely incorporate and operate their businesses in the Itana zone, with laws, business incentives (tax, immigration and banking), and services optimised for the digital economy. This will be coupled with eco-friendly live-work districts and a live-in accelerator programme, showcasing the future of African cities and providing the ideal infrastructure and support for businesses in Africa to scale and compete globally.
The AFC will support Itana with project development funding and intends to lead in the financing of phase 1 of the Itana project, which is budgeted at around $100 million. This will include an eco-friendly tech campus in Lagos and funding of startups in Accelerate Africa, the accelerator programme of Itana in partnership with Future Africa (led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave). AFC will also support the rollout of the Itana Digital Economic Zone for global and pan-African tech, finance and service-based businesses seeking to operate across Africa.
Itana and AFC are already collaborating alongside Future Africa, PwC Nigeria and Charter Cities Institute as technical advisers to the Initiative for the Promotion of Digital Free Zones in Nigeria, a non-profit advocacy and policy research organisation representing the private sector in the recently announced Nigerian Federal Government steering committee for the establishment of digital economic zones in Nigeria.
Itana will be a conducive environment tailored to the 21st-century digital trade and technological age. The organisation recently launched the Itana Application where individuals can join the community and have access to events and services such as business visa facilitation, local bank accounts and a curated marketplace of trusted vendors and consultants for doing business in Africa.
Businesses that meet the criteria can register as a free zone enterprise with ease and will receive a business operating licence that enables them to do business in Nigeria like numerous digital companies including Reliance Infosystems and Future Africa.
After business incorporation, businesses can operate in the zone with tax and capital repatriation incentives, get access to the Itana business community, apply for business banking in the Digital Economic Zone, and special work and residency permits without limitations imposed by expatriate quotas.
“Itana intends to be to Nigeria and Africa what Delaware and Silicon Valley are to the US, the International Finance Centre is to Dubai, and e-Estonia is to the European Union,” said Luqman Edu, CEO of Itana. “Itana 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.”
Added Samaila Zubairu, president and CEO of the AFC: “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. In support of this, AFC is proud to be a pioneer alongside Itana, in building Africa’s first digital economic zone. This unprecedented initiative marks a pivotal step toward 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.”
Last year, Itana announced a funding round backed by leading technology venture capitals and highly influential tech industry leaders, including LocalGlobe, Amplo, Pronomos Capital (backed by Peter Thiel), Balaji and Future Africa.
As the first digital economic zone, Itana remains committed to making Nigeria a powerhouse in the global digital economy. It will be hosted in Alaro City, an integrated, mixed-use city planned on over 2 000 hectares in the Lekki Free Zone.