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Nigeria's new digital free zone aims to boost ease of business, attract global tech firms, and drive economic growth with modernised policies and incentives. (Image source: Adobe Stock)

To enhance the ease of doing business for global enterprises in digital, finance, knowledge, and services sectors in Nigeria, the Federal Government has established a steering committee chaired by President Bola Ahmed Tinubu GCFR

This initiative aims to promote and establish a digital free zone in Nigeria, catering to the unique needs of innovative digital trade and service businesses.

The Initiative for the promotion of Digital Free Zones in Nigeria (DiFZIN) represents private-sector stakeholders and serves as technical advisers. DiFZIN is a non-profit advocacy and policy research organisation backed by a consortium of private sector development-focused institutions, including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana. Its mission is to ensure Nigeria’s free zones ecosystem becomes a leading hub for global technology and service businesses in Africa.

The committee will work with government agencies and private stakeholders to align Nigeria’s free zone policies, technology, and processes with international standards. It will develop and publish frameworks to allow both global and local technology and service businesses to set up Pan-African or global operations from Nigeria. Businesses utilising the zone will benefit from competitive incentives such as tax, immigration, and banking advantages, streamlined government compliance, predictable regulations, and a supportive business environment.

This initiative supports the Federal Government’s strategic growth goals by aiming to increase foreign direct investment, create job opportunities, and facilitate capital flow into Nigeria’s economy through a forward-thinking approach to the free zones ecosystem.

The HMF/CME highlighted the crucial role of free zones in driving and sustaining economic growth in emerging markets like Nigeria, emphasizing that the digital age must integrate technology-focused businesses within a liberal regulatory framework to attract investment and showcase domestic talent globally.

Dr Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), emphasised NEPZA’s dedication to digital transformation. He highlighted the e-NEPZA platform’s role in streamlining government services in line with the Federal Government’s ease of doing business policy. Dr. Ogunyemi also stressed the importance of data privacy and the need for digital infrastructure, such as fibre optics, to support small businesses accessing global markets. “We look forward to partnering with DiFZIN to advance our digital processes,” he stated. NEPZA’s backing of Digital Free Zones marks a step towards a digitally-driven economy, unlocking new opportunities for businesses of all sizes in Nigeria.

Luqman Edu, executive director of DiFZIN and CEO of Itana, and the DiFZIN consortium, aim to support the Federal Government in making Nigeria a hub for regional expansion across Africa. These efforts are intended to enhance Nigeria’s GDP, government revenue, capital importation, and foreign exchange availability, while creating employment opportunities for the growing Nigerian youth population.

“DiFZIN is committed to driving the agenda for reforms to the regulatory frameworks for taxation, banking, immigration, and ease of doing business, among others, within the free zones ecosystem,” said Edu. “Our goal is to create a conducive environment for global technology and services-based businesses to thrive, facilitating remote operations and banking from Nigeria for Africa, thereby positioning Nigeria as a hub for Africa, akin to what Delaware is for the US, and Dubai is for Asia.”

Banji Fehintola, head of financial services at AFC, commented, “AFC’s advisory team is uniquely skilled in providing tailored financial and technical advice to public and private sector players across Africa. We look forward to collaborating with DiFZIN and all other partners to modernize Nigeria’s free trade zones, attract much-needed investment, create local jobs, and boost trade and commerce in Nigeria and Africa.”

Digital Free Zones promote innovation and economic growth by utilizing advanced digital technologies like AI and Edge Computing within a supportive regulatory environment. These zones act as incubators for innovation, offering a platform for businesses to enhance growth and competitiveness. The supportive regulatory framework ensures an environment conducive to experimentation, collaboration, and the seamless integration of emerging technologies into business operations.

The introduction of Network One in Nigeria aligns with the Central Bank of Nigeria’s directive for in-country transaction routing, boosting local processing capabilities. (Image source: Adobe Stock)

Network International, a prominent payment solutions provider and a key ally of Nigerian banks, has unveiled its state-of-the-art Network One platform in Nigeria

This award-winning digital payment solution positions Network International, a FTSE-listed entity, as a crucial enabler for local and regional markets, even amidst challenging conditions.

The company is now poised to onboard and empower banks, mobile network operators (MNOs), and fintechs across Nigeria and West Africa.

With a 30-year legacy in digital payments, Network International began as the processing arm of Emirates Bank in the UAE and has since expanded into markets like Egypt and South Africa under different brands. After two decades in Nigeria, the company continues to bolster its presence and commitment to the region.

Network One transforms Nigeria

The introduction of Network One in Nigeria aligns with the Central Bank of Nigeria’s directive for in-country transaction routing, boosting local processing capabilities. This integrated platform offers a comprehensive suite of payment products and services for banks, financial institutions (FIs), and fintechs in Nigeria, including digital solutions, loyalty programs, tokenisation, enterprise fraud prevention, embedded finance, and advisory services.

Nandan Mer, group CEO of Network International, stated, “This major milestone took us only a few months to deploy thanks to a local team that worked tirelessly and seamlessly with cross-functional colleagues in various geographies to ensure we deliver on Network One’s promise of innovation, resilience, and agility. Taking Network One live in Nigeria is integral to our company’s continued commitment to the country and the continent.”

Nigeria, with its fourth-largest GDP in Africa and strong consumer spending, is primed for a digital payments surge. The domestic digital payments market's total transaction value is expected to hit US$21.32bn in 2024, growing at an annual rate of 10.06% to reach US$31.28bn by 2028.

Electronic payments offer advantages over cash transactions, which are costly due to printing, storing, and transporting money, representing 2% to 5% of a country's transaction costs. In contrast, electronic payments are more secure, cost-effective, and faster, fostering economic growth.

Network One is an integrated payment suite that provides both merchant and issuer solutions, hosted and supported locally. It combines top technologies to offer end-to-end payment processing in a highly adaptable environment.

Network International's investment in local technology infrastructure aims to meet the needs of local and regional entities with market-relevant digital payment solutions.

Dr Reda Helal, Group MD – Processing, Africa and co-head group processing, Network International, explained, “Our presence on the ground and comprehension of the specific needs of the local market have enabled us to tailor a solution that is ideally suited for Nigerian enterprises. Our capability to establish a hub equipped with all the essential technology not only empowers our clients to enhance their value proposition but also positions Network to effectively contribute to financial inclusion and democratisation of payments, addressing the needs of a large population of consumers across the continent.”

Network International operates on a hub-and-spoke model, with Nigeria serving as the hub for West Africa and Francophone Sub-Saharan Africa. Additional hubs in Ghana and South Africa enable efficient service to its African clientele.

The company’s investment in Nigeria includes fostering a skilled local workforce. By collaborating with local banks and mobile operators, Network International enhances its support for small and medium-sized enterprises and payment experts.

Network recently advanced its BBBEE status from level 4 to level 1 in a year, reflecting its growing trust among African institutions as a preferred payments partner.

Dr. Helal added, “By recruiting the right talent, we are assured that our teams in Nigeria can achieve quicker results with reduced reliance on our international teams, leading to significant operational benefits for our clients locally and regionally.”

Network International’s investments across Africa have improved economies of scale, allowing the provision of advanced technology at lower costs compared to internal development. This affordability, combined with cutting-edge features, attracts a broad audience and supports digital transformation across the continent.

“Network One’s successful touchdown in Nigeria embodies our ambition to establish ourselves as a company that is authentically local in the African markets we serve,” Mer concluded.

The company prioritises creating a secure digital payment sector to foster trust among consumers, banks, and other stakeholders. Network International has invested in comprehensive cybersecurity and fraud prevention, utilizing AI tools to monitor transaction patterns and device usage for fraud detection.

By focusing on connecting buyers and sellers through digital payments, Network International aims to reduce cash reliance and boost the Nigerian economy. The company promotes financial inclusion by partnering with telecoms and fintechs to reach underserved populations, including those in remote areas.

The platform’s virtual wallet feature simplifies access to digital products for the unbanked, enabling users to obtain cards directly from their phones and load them via mobile wallets. This feature is crucial for driving financial inclusion, providing banks with enhanced capabilities to serve end-users efficiently.

Network International is also committed to corporate social responsibility, adopting a school to promote financial literacy among young students as part of its effort to support financial inclusion and digital transformation in Nigeria from an early age.

A collaborative industry environment, supported by government policies, is vital for accelerating digital payments and financial inclusion. Network International is ready to engage with government-sponsored programs and infrastructure developments to enhance Nigeria’s digital economy.

The company’s platform handles high transaction volumes with speed, security, and scalability, ensuring reliable and trustworthy digital payments.

Safaricom and Kenya Airways unite to enhance efficiency with in-flight Wi-Fi, IoT solutions, and data science for improved operations and customer experience. (Image source: Adobe Stock)

Safaricom and Kenya Airways have joined forces to boost the airline's operational efficiency, introducing enhancements such as in-flight Wi-Fi, improved cybersecurity, and an elevated customer experience

Their partnership will also target infrastructure inspection, security surveillance, loyalty programs, data science, software development, and innovation in aviation, including agricultural applications.

Additionally, the collaboration will focus on developing and implementing Internet of Things (IoT) solutions for warehousing, baggage tracking, aircraft materials, and Unit Load Devices (ULDs), which are containers used for loading luggage and cargo in aircraft holds. These IoT solutions will address tracking, location, reconciliation, and stock-taking needs.

Kenya Airways' chief information and data officer, Fredrick Kitunga, noted, "By harnessing our combined expertise, we are not only addressing today's challenges but also laying the groundwork for sustainable growth, enhanced connectivity, and transformative innovations that will benefit our customers and communities for years to come."

Cynthia Kropac, Safaricom's head of business, highlighted that the partnership supports Safaricom’s strategy to improve customer experience by connecting people in innovative ways. She stated, "By leveraging our respective strengths, Kenya Airways in providing safe journeys and Safaricom in cutting-edge communications and technology - we ensure that our customers remain seamlessly connected throughout their travels."

Safaricom's strategic partnerships

Safaricom has been actively pursuing strategic partnerships to extend its reach and enhance connectivity. In August 2023, the company secured a notable sustainability-linked loan from a consortium of four banks in Kenya, aimed at advancing its environmental, social, and governance (ESG) initiatives. Furthermore, Safaricom expanded into Ethiopia in August 2022 and launched commercial operations in the Tigray region in June this year.

In June 2023, Safaricom's operation in Ethiopia closed a deal with the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) that included an equity investment of US$157.4mn and a US$100mn loan.

The same month, Safaricom announced that the IFC would become an investor in its Global Partnership for Ethiopia consortium to support the ongoing construction and operation of Safaricom's greenfield telecom network in Ethiopia.

Mandla Mbonambi, CEO of Africonology Solutions. (Image source: Africonology Solutions)

Mandla Mbonambi, CEO of Africonology Solutions, delves into the intersection of Generative AI (GenAI) and cybersecurity, highlighting the critical challenges and opportunities it presents

As digital landscapes evolve, the convergence of GenAI with cybersecurity becomes increasingly significant. This merging of technologies introduces both substantial threats and unique prospects, placing cybersecurity experts in a pivotal role to innovate and safeguard against emerging risks.

Integrating GenAI into cybersecurity strategies is crucial. Experts in the field are now adept at using AI algorithms to analyze large datasets, uncover code vulnerabilities, and counteract advanced malware. The rapid evolution of AI-driven attack methods, including multilingual phishing and sophisticated deepfakes, underscores the importance of leveraging GenAI for enhanced threat detection and response.

Navigating GenAI Security Synergy

Recruiting and retaining top talent in GenAI and cybersecurity is essential. Creating an environment that fosters innovation and continuous learning through advanced training programs is vital for adapting to the fast-paced cybersecurity landscape.

GenAI’s dual nature presents both hurdles and opportunities. While it equips attackers with potent tools for deception, it also empowers cybersecurity teams to develop robust defenses. The key challenge is to outpace adversarial strategies while exploring new methods to strengthen security.

An optimistic perspective is crucial, despite the risks associated with GenAI. Its transformative potential in cybersecurity is undeniable, as collaboration between human expertise and AI can forge a resilient defense against evolving threats. The emphasis should be on responsible and ethical usage, ensuring GenAI serves as an aid rather than a threat.

Navigating the evolving landscape of GenAI and cybersecurity demands a strategic approach, balancing the benefits and challenges of technological advancements. The future of digital security hinges on the synergy between human skills and AI innovations.