In early 2022, Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave, shared his ambitious project, Talent City, during an interview with TechCrunch. Talent City aimed to assist both local and global startups and service businesses in expanding their operations across Africa without the usual hindrances of unstable policies, infrastructure deficits, and other business challenges.
At that time, this self-proclaimed charter city, backed by the Charter Cities Institute and Pronomos Capital (a venture fund supported by Peter Thiel), had already secured over $10 million for its location within Alaro City, just outside Lagos, Nigeria. However, fundraising efforts were ongoing, and the physical city’s completion was expected to take a few more years. In the interim, Talent City, now known as Itana, successfully raised $2 million in pre-seed funding. This capital was earmarked for establishing a digital free zone.
Itana, founded by CEO Luqman Edu, COO Coco Liu, and investor Iyinoluwa Aboyeji, was set to become Africa’s inaugural digital free zone. The founders intended to use the funding to enhance Nigeria’s business environment, attract foreign direct investment (FDI), and stimulate employment in the country.
Nigeria has both privately and government-operated free zones, with the former being more prosperous. These zones have typically attracted oil and gas as well as manufacturing companies due to their financial incentives and tax breaks. While waiting for the physical charter city’s completion, Itana aimed to create a virtual city within these free zones, catering to digital and service industries while providing similar benefits. Luqman Edu likened this concept to Delaware in the U.S., e-Estonia in Europe, or Dubai in Asia, although the government’s involvement raised questions about Itana’s potential as a venture-backed business.
Itana’s initial project, Itana Edge, was designed as an all-in-one online platform, similar to Stripe Atlas, enabling international businesses to access incentives like taxation benefits, business visas, banking services, capital repatriation, and favorable legislation when incorporating and operating in Nigeria, even without a physical presence in a free zone. Itana offered these services in partnership with the Nigerian government, which issued the necessary business licenses.
Itana planned to initiate its pilot program in Nigeria, aspiring to become Africa’s Silicon Valley. Select companies were expected to participate in the coming weeks, with the launch scheduled for the first quarter of 2024. The proposed “live-work-build” campus, Itana District, would span 72,000 square meters and accommodate permanent residents and digital community visitors for networking, co-working, and co-living. The first phase of development was slated for completion by 2027.
Itana aimed to generate revenue through various means, including annual subscriptions for business licenses, with a portion shared with the government. Additionally, on-demand services from its one-stop-shop app within the Free Zone, such as banking, visas, tax auditing, recruitment, payroll management, business sector licenses, and minimal transaction fees, would contribute to revenue. The COO, Coco Liu, emphasized the intention to collaborate with government agencies and optimize revenue as clients expanded their businesses.
Despite its futuristic vision, Itana had several factors working in its favor. Africa was viewed as a promising continent for software developers and foreign direct investments, supported by data from Stripe Atlas showing a 400% year-on-year growth in incorporated businesses in Nigeria. Furthermore, initiatives like the Nigerian Startup Act and the appointment of Bosun Tijani as Minister of Innovation and Digital Economy suggested a favorable environment for projects like Itana to flourish.
Itana received backing from venture funds like Future Africa (founded by Iyinoluwa Aboyeji), as well as global venture capitalists including LocalGlobe, Amplo, and Pronomos Capital. These investors believed in the significant market opportunity for serving digital service and technology businesses in Africa and saw Itana as a solution to address infrastructure challenges while supporting a new generation of entrepreneurs in Nigeria and beyond.
