AU Commends New Generation SEZ for Promoting Regional Integration and Structural Transformation
On the sidelines of the African Special Economic Zones Annual Meeting 2024, the African Union (AU) and African Economic Zones Organization (AEZO) held a prize-giving ceremony to highlight the role of Special Economic Zones (#SEZ) in creating Regional Value Chains and realizing structural transformation.
The Annual Meeting took place in Nairobi from 27 to 29 November 2024. For 2024, the theme was ‘Building Resilient, Inclusive, and Sustainable Economies: The Role of African SEZ in Attracting High-Impact Investment and Redefining Competitiveness.’
Among the projects put under the spotlight, we note the following:
- Electric Batteries and Vehicles SEZ between Zambia and DR Congo
- Agro-Industrial SEZ between Zambia and Zimbabwe
- Timber SEZ in Cameroon
- Fertilizer SEZ in Congo
Kenyan President Ruto highlighted that SEZ will play a catalytic role towards the #AfricanRenaissance. He urged for closer collaboration and joint initiatives among African States to advance the continent’s #industrialization.
“By integrating special economic zones into a continental transformation strategy, we shall enhance resilience and competitiveness to achieve inclusive prosperity. This is why SEZ are indispensable engines of growth”
Kenya President William Ruto
Recently, Kenya amended its Finance Act to boost investment in industrial parks. Now, Kenya is planning to amend the SEZ Act of 2015 to bring it up to date with regional realities and global best practices. In addition, the East Africa Community (EAC) SEZ Regulation 2024 will ensure free movement of goods across member States in the #EAC.
In particular, a case study of the Chinese model of SEZ was presented and debated to see how it could be adapted and applied t the African context. To avoid certain pitfalls, Africa must rather extract lessons from the Chinese experience to mitigate wealth disparity, environmental damage and sometimes a poor image.
Through combining resources, Africa can establish Regional Value Chains for a particular sector. The Electric Vehicle (EV) sector is a case in point where the #CriticalMinerals are found in DR Congo (Cobalt), Zambia (Copper) and Zimbabwe (Lithium).
Africa will only be able to achieve structural transformation if it manages to successfully graduates from a raw material producer to a finished goods exporter with higher Local Value Addition (#LVA).
In conclusion, Africa must find ways to leverage its vast natural resources and human capital to realize inclusive and sustainable socio-economic growth.