Over the past decades, as Africa’s startup scene has grown, many African-founded companies have moved their parent companies to foreign locations such as Delaware, California, London and Paris.
One of the main reasons for this move is to attract foreign capital, as many global investors prefer to invest in companies registered in countries whose laws and business systems they trust. This is often linked to concerns about unclear business rules and regulations in African countries, including Nigeria.
But since 2023, ITANA has taken steps to build a digital free zone in Nigeria, giving African startups another way to register and run their businesses from the Africa (Nigeria) while reaching global markets.
In this article, we look into what ITANA is building and what it means for African startups and the future of digital free zones in Africa.
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What is ITANA’s digital trade zone?
ITANA is Nigeria’s first licensed Digital Special Economic Zone, approved by the Nigeria Export Processing Zones Authority (NEPZA) to help digital and service-based businesses register and operate remotely from Nigeria.
Through its platform, eligible companies can complete incorporation within 24 to 48 hours. The zone also allows 100% foreign ownership without a local partner and offers faster visa processing.
According to ITANA’s official website, business setup costs $2,000 for the first year, with an annual renewal fee of $1,000.
The company aims to attract startups that traditionally register their parent companies abroad by giving them a way to build and run their businesses from Nigeria while serving African and global markets.
In September 2026, the Nigerian Presidency described the wider ITANA Innovation project as a $500 million development. The announcement established the scale of the planned project.
ITANA has also attracted companies looking to operate through Nigeria’s digital free zone. Choplife, the entertainment and technology company founded by Nigerian musician Mr Eazi, announced in August 2026 that it had joined ITANA’s digital free zone.
Why African startups register abroad
Foreign incorporation remains very common among African startups seeking investment. In April 2025, investment firm Renew Capital estimated that about ~60% of African startups and 80% of Nigerian startup were incorporated in the United States of America.
One of the key reasons is that foreign investors often prefer legal systems they already know. In jurisdiction like Delaware, investors already understand how companies are set up and how their shares are protected. Others invest through companies registered in places such as California, London, or Mauritius.
Although, these places are not all the same. But familiar laws, clear rules on company ownership and ways to settle legal disputes can make investors more comfortable putting money into a business.
Moving a startup’s parent company abroad is often called a “Delaware Flip”, although the new parent company can be registered in other places too aside from Delaware. The foreign company usually owns the business operating in Nigeria or another African country. This helps a startup in a local market meet investor requirements, even though it also brings extra legal costs and place ownership of shares or intellectual property right under a foreign based parent company.
Foreign investment, over the years has helped African startups grow, hire workers and build useful products. But when the parent company is abroad, some ownership and the financial gains from a future sale sits outside the country where the business was built. How much wealth stays in Africa, where its profits go and how it pays taxes depends on the company’s ownership structure.
The company is trying to give eligible businesses another choice: set up through Nigeria’s digital free zone while serving customers in Africa and around the world.
How ITANA’s digital free zone could benefit startups
ITANA combines online company registration, banking services and tax benefits under Nigeria’s free zone rules. It is designed to give eligible businesses a way to register and run their operations from Nigeria while serving customers across Africa and the rest of the world.
Through the platform, businesses can access banking services in US dollars, euros, British pounds and Nigerian naira. Eligible companies also receive tax benefits, including 0% corporate income tax on qualifying activities and 0% VAT on eligible free zone transactions.
These services support companies that sell software, offer consulting or provide other digital services to customers abroad. But, businesses must still meet ITANA’s eligibility rules and follow the tax laws of other countries where they operate.
ITANA’s model aims to make it easier for businesses to register, manage their money and serve global customers from Nigeria.
What the data says about ITANA’s growth
ITANA has grown to a community of over 3,000 members across more than 40 countries.
Condia in August 2026 reported the number of businesses operating in the zone at about 50 since it began operations in September 2023.
ITANA is also working to build the wider business zone. In September 2024, it announced a partnership with the Africa Finance Corporation (AFC) to develop the project, with the first phase budgeted at about $100 million. The plan includes a technology campus in Lagos and support for startups through an accelerator programme linked to Future Africa (a USA/Nigerian based venture capital & investment firm) co-founded by Iyinoluwa Aboyeji who also co-founded ITANA.
AFC said it would provide funding for project development and intended to lead financing for the first phase.
In August 2026, Choplife, the entertainment and technology company founded by Mr Eazi, joined ITANA’s digital special economic zone. Choplife works across areas such as music, events, gaming and media in several African markets. Its move shows that ITANA is seeking businesses beyond software startups, including companies that manage different types of digital services and creative work.
Other companies that have incorporated with ITANA are Circular Energy, Mona, Breeze, among many others.
Although, the key numbers are still missing. There is no clear public data showing how much investment companies registered through ITANA have raised, how many jobs they have created or how many founders chose it instead of setting up a parent company abroad.
How the Nigerian Government is supporting digital free zones
The Nigerian government is working to bring more technology, finance and service businesses into the country through digital free zones.
In September 2026, President Bola Tinubu directed the government to prepare a plan to fully launch the Digital Free Zones initiative within 180 days.
The Presidency said the goal is to help Nigerian businesses raise money from global investors, create jobs and serve customers around the world without moving their businesses and intellectual property abroad.
But before then, in August 2024, the government set up a committee to help create digital free zones and review Nigeria’s free zone rules. The work covers areas such as tax, banking, visas and the steps businesses must follow to meet government rules. The aim was to make it easier for digital businesses to operate from Nigeria and serve customers abroad.
ITANA is also involved in these talks through the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN). The group brings together private organisations, including the Africa Finance Corporation, PwC Nigeria, Charter Cities Institute and Future Africa.
Can ITANA replace Delaware for African startups?
ITANA offers another option for businesses that want to operate from Nigeria, but it has not yet shown that it can replace foreign registration for startups seeking money from international investors.
The real issue is that investors may want a startup to register its parent company in a country whose laws they know. ITANA offers business services and tax incentives under Nigeria’s free zone rules, but these benefits do not mean that every foreign investor will accept an ITANA-registered company as the main company receiving their investment.
This is Likely to result to some startups using ITANA to run their African operations, while keeping a parent company in the United States, the United Kingdom or another country whose laws are familiar. Others may choose ITANA if its legal structure meets their investors’ needs. The right choice will still depend on how the business works and where it plans to raise money.
To win more startups, ITANA needs to show clear results. How many of its registered companies are still active? How much money have they raised? How many jobs have they created? And has the zone helped them do business across borders? These answers will show whether ITANA is making it easier for African startups to build and grow their businesses from Nigeria.
What ITANA’s digital trade zone means for African startups
ITANA’s digital free zone creates a new path for eligible startups to register and run their businesses from Nigeria. Its partnership with the Africa Finance Corporation and the government’s work on digital free zone rules are part of the plan to build the services and facilities these businesses need.
However, ITANA’s impact is not yet clear. The company may report more than 100 registered businesses, but there is little public data on how many are still active, how much money they have raised or how many jobs they have created. It is also not clear how many startups have chosen ITANA instead of registering abroad.
If ITANA can offer reliable services, clear rules and a business structure that foreign investors will accept. More companies will likely be able to build their businesses in Nigeria while serving customers around the world.
Iyinoluwa AboyejiFounder, Future Africa
