African Special Economic Zones are considered as one of the main instruments that stimulate economic reforms, promote quality FDI and accelerate industrialization across the continent. According to the African Economic Zones Outlook (Edition 2021), more than 200 SEZs are operational in Africa and 73 projects have been announced for completion in the 47 of the 54 countries. The total area dedicated to the development of SEZs exceeds 146,372 hectares of land, mobilizing more than $2.6Bn investments dedicated to agro-processing, manufacturing and services.
African policymakers seek to develop SEZs with the aim of attracting investment, creating jobs, boosting manufacturing production, exports of processed goods and much-needed industrial and economic diversification and Regional Value Chains Development. Indirect economic benefits range from upgrading of the local industrial base to being catalysts for innovation, knowledge and technological spillovers as SEZs can plant the seeds for not just the generation of significant direct employment, but also the transfer of knowledge and skills that can ignite enhanced innovation, productivity and economic growth.
Research and empirical evidence suggest that many African SEZs are still far from achieving their objectives even considering the most direct economic gains usually expected, such as increased FDI, exports and jobs (Farole, 2011). Moreover, many African SEZs have remained isolated enclaves, and failing to dynamize the surrounding industrial context. The reasons for such shortcomings frequently relate to the design and implementation of SEZ policies and programs. It is also a fact that, when dealing with SEZs investment, African countries inevitably interact with foreign investors, this has meant that African governments compete with one another to provide greater incentives to foreign investors, racing to the bottom. African SEZs are also entitled to promote knowledge transfer, peer to peer learning, and technical cooperation in the design and implementation of sustainable SEZs project. The unfolding of the fourth industrial revolution, the heightened focus on sustainable development and the new wave of global value chains will require greater adaptability and resilience in developing SEZ project.
In this context, the African Union Commission (AUC)’s Department of Trade and Industry and Africa Economic Zones Organization (AEZO) are joining efforts to organize the 5th AU Symposium on SEZs and the 7th edition of the AEZO Annual Meeting under the theme: “African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development”.
This year’s edition will pave the way for the celebration of the 30th anniversary of the Special Economic Zones scheme in Nigeria, and will gather prominent government officials, ministers, and heads of international organizations. This event will offer the opportunity to +400 participants to follow the deliberations and interact with eminent experts, academia, policy makers, financial institutions and C-level representatives from Economic Zones and Investment Promotion Agencies.