Nigeria forges ahead in digital advancement, establishing a new economic zone for technological innovation

In a groundbreaking move, Africa Finance Corporation (AFC) and Itana have announced a collaboration to establish Africa's first digital economic zone in Lagos, Nigeria. This initiative represents a significant step towards establishing Africa as a major player in the global digital economy.

For a fee of less than $2,000, companies can register as free zone enterprises through the Itana app. This app offers a comprehensive platform for company registration, business banking, visa processing, and tax filing. The first phase of the Itana project includes constructing a tech campus in Nigeria, capable of accommodating nearly 5,000 people.

The free zone will exempt registered enterprises from Nigerian tax requirements, import duties, and currency restrictions. This could drive innovation, job creation, and sustainable economic development across the continent. The collaboration could potentially transform the continent's business landscape and attract international investment and talent.

The concept of free zones is not new, with early examples dating back to the early 20th century. However, the Itana project aligns with Nigeria's recent efforts to promote digital economic zones, as evidenced by the government's formation of a steering committee in 2024, led by President Bola Ahmed Tinubu.

Itana has already attracted over 2,000 digital members and issued licenses to several businesses, with more applications in progress. The initial phase of the Itana project will be financed by the AFC, to the tune of $100 million. This funding, along with additional investments of $2 million from Future Africa, Promonos Capital, and LocalGlobe, will help bring the vision to life.

AFC President & CEO Samaila Zubairu expressed pride in pioneering this initiative alongside Itana. He believes that this collaboration has the potential to create a thriving hub for the African digital economy, similar to Delaware, Silicon Valley, DIFC, and e-Estonia.

The Africa Finance Corporation (AFC) and Itana's collaboration could potentially revolutionise the continent's digital economy. With internet usage in Africa tripling from 216 million users in 2015 to 728 million in 2024, and funding for African startups rising from under $200 million in 2015 to $4 billion in 2023, the stage is set for significant growth.

Itana aims to serve as a gateway for local and international businesses expanding across Africa. This initiative could drive economic growth, create jobs, and foster innovation, ultimately positioning Africa as a major player in the global digital economy.

Nigeria forges ahead in digital advancement, establishing a new economic zone for technological innovation