Building Africa’s Answer to Delaware: Can Itana Power the Continent’s Tech Revolution?

By Caleb Maru

In the global race to build the next generation of tech unicorns, Africa is no longer just catching up – it’s reimagining the rules of the game. While the continent has produced nine unicorn startups, a striking reality looms: most of them aren’t legally based in Africa.

Instead, they are incorporated in far-flung jurisdictions like Delaware, Singapore, and the Cayman Islands.

This isn’t a quirk – it’s a symptom of a deeper structural challenge.

Nearly 60 percent of venture-backed African startups choose to register outside the continent from day one. Why? Because launching a company in many African countries remains a bureaucratic maze.

In some nations, registration can take weeks or even months. Foreign investment restrictions make fundraising a legal tightrope. And regulatory unpredictability means the rules can shift overnight, undermining investor confidence.

Enter Delaware – America’s tiny yet mighty corporate haven. Known for its business-friendly courts, swift incorporation (just 24 hours), unrestricted access to foreign capital, and favorable tax and exit policies, Delaware has become the de facto home for African tech giants.

But this convenience comes at a cost: lost tax revenue, weakened domestic ecosystems, and a persistent dependency on foreign infrastructure.

The High Cost of Going Abroad

Now, two of Africa’s most influential tech leaders are betting on a bold alternative.

In 2022, Luqman Edu, a seasoned investor with a decade of experience backing African tech ventures, joined forces with Iyinoluwa Aboyeji, co-founder of two African unicorns – Flutterwave and Andela – to launch Itana.

Their vision? To create Africa’s first Special Economic Zone (SEZ) purpose-built for technology startups – a “Delaware for Africa,” just outside Lagos, Nigeria.

Itana isn’t just another innovation hub. It’s a city with its own governance framework, designed to offer startups the legal, financial, and physical infrastructure they need to scale – without leaving the continent.

Inside Itana, entrepreneurs will be able to:

• Register their companies online in record time
• Open and operate USD-denominated bank accounts seamlessly.
• Access reliable power, high-speed internet, and modern office spaces.
• Benefit from stable, transparent regulations tailored for tech growth.

A Homegrown Solution for African Innovation

This isn’t theoretical. Itana has already secured major momentum:

• Backing from the Nigerian federal government.
• A 1,500-acre site acquired for development.
• A US$100 million financing deal to begin construction of the physical city.

The implications are profound. For too long, Africa’s brightest founders have been forced to choose between building at home and building under favorable conditions.

Itana aims to eliminate that trade-off.

But the stakes go beyond convenience. As history has shown, billion-dollar companies don’t emerge in a vacuum – they require ecosystems.

Silicon Valley didn’t rise on innovation alone; it was powered by universities, capital, legal frameworks, and infrastructure working in concert. Africa’s tech future demands the same.

Building the Foundation for Africa’s Tech Future

Itana represents more than bricks and bandwidth. It’s a statement: that Africa can – and must – own the infrastructure that powers its economic transformation.

Next week, I will be sitting down with Iyinoluwa Aboyeji, co-founder of Itana, to discuss the challenges, opportunities, and long-term vision behind building a new foundation for African innovation. From regulatory design to attracting global capital, we will explore what it truly takes to turn a bold idea into a city that could redefine Africa’s place in the global tech economy.

One thing is clear: the future of African tech won’t just be built by founders. It will be built by visionaries who understand that the right infrastructure can change everything.

Caleb Maru is Founder and CEO of Tech Safari, Africa’s leading tech community and media company, specializing in tech innovation, market trends, and exclusive insights across the continent. Based in Nairobi, Kenya