Africa Finance Corporation backs Itana’s $100 million Digital Economic Zone in Lagos 

The Africa Finance Corporation (AFC) has said it would lead the financing of Itana’s Digital Economic Zone, which is budgeted at around $100 million.

The facility, which is to be built in Lagos is designed for global and Pan-African technology, finance and service-based businesses to operate and scale with ease across Africa, unlocking the continent’s digital economy.

According to a statement from the AFC, the formalisation of the partnership Itana on the project took place in front of global government and business leaders, at the Global Africa Business Initiative (GABI), on the sidelines of the ongoing United Nations General Assembly (UNGA) in New York.

The project 

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.

• According to the details of the project shared, through Itana, companies can remotely incorporate and operate their businesses in the Itana zone, with laws, business incentives (tax, immigration & banking), and services optimized for the digital economy.

• This will be coupled with eco-friendly live-work districts and a live-in accelerator program, showcasing the future of African cities and providing the ideal infrastructure and support for businesses in Africa to scale and compete globally.

• This will include an eco-friendly tech campus in Lagos, Nigeria, and funding of startups in Accelerate Africa, the accelerator program of Itana in partnership with Future Africa.

• AFC will also support the roll-out of the Itana Digital Economic Zone for global and Pan-African tech, finance, and service-based businesses seeking to operate across Africa.

Africa’s Silicon Valley 

Commenting on the project, CEO of Itana, Luqman Edu, said the company 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.

“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,” he said.

President & CEO, Africa Finance Corporation, Samaila Zubairu, also commented on the initiative saying:

“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 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,” he added.

What you should know 

Itana, Nigeria’s first licensed digital economic zone management company.

Before now, Itana and AFC have been 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 (DiFZIN), a non-profit advocacy and policy research organization representing the private sector in the recently announced Nigerian Federal Government steering committee for the establishment of Digital Economic Zones in Nigeria.

• The committee is chaired by President Bola Tinubu and includes relevant Government Ministers and Agency Heads.
• 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 (led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave).
• As the first of its kind in Africa, the Digital Zone project to be hosted in Alaro City, an integrated, mixed-use city planned on over 2,000 hectares in the Lekki Free Zone, is poised to make Nigeria a powerhouse in the global digital economy.