Africa's digital economy is undergoing rapid expansion, but there is a growing need for infrastructure to support it. Creating a digital economic zone will provide the foundational infrastructure for this growth by enabling tech companies to operate in a streamlined, business-friendly environment.

Africa Finance Corporation (AFC) and Itana, Nigeria’s first licensed digital economic zone management company, have formalized a partnership to develop Africa's first digital economic zone. Announced at the Global Africa Business Initiative (GABI), on September 26, during the United Nations General Assembly (UNGA) in New York, the zone is intended to provide a seamless platform for global and Pan-African tech, finance, and service-based businesses to scale across Africa.

Samaila Zubairu, President & CEO of AFC, described the initiative as a "pivotal step" towards creating a hub for Africa’s digital economy, adding that it will cement “the Corporation’s commitment to driving innovation, job creation, and sustainable economic development across the continent.” 

The Itana Digital Economic Zone, based in Lagos, Nigeria, will operate as an online jurisdiction, allowing businesses to incorporate and manage their operations remotely. This platform will be optimized with laws, tax incentives, and services geared toward supporting the digital economy, alongside eco-friendly live-work districts and a live-in accelerator program designed to foster innovation and sustainability in Africa’s tech ecosystem.

AFC will provide project development funding and lead the financing for phase 1 of the Itana project, which is expected to cost approximately $100 million. This phase includes the development of a tech campus in Lagos and startup funding through Accelerate Africa, a partnership between Itana and Future Africa.

This development provides a framework for businesses seeking to tap into Africa’s growing digital economy. The project will be located in Alaro City, within the Lekki Free Zone, and will collaborate with partners like Future Africa, PwC Nigeria, and the Charter Cities Institute.

Nigeria is home to one of the largest startup ecosystems in Africa. According to the Nigerian Investment Promotion Commission, the country raised over $1.2 billion in startup funding in 2021 alone. Creating a digital economic zone will provide much-needed infrastructure, legal frameworks, and incentives to accelerate the growth of these startups, making Nigeria a global tech player.

Hikmatu Bilali