Industrial processing of raw materials: The proliferation of Special Economic Zones in Africa

2024-10-02 01:48:39

(237 industrial platforms: the solution to development?)

To boost their industrial and inclusive development, many African countries are banking on the creation of Special Economic Zones (SEZs) or Economic Zones (EZ). There are 237 on the African continent in 2023 and others are on the way.

Abdul Wahab ADO

In order to strengthen public-private partnership (PPP) in Africa and attract local and international investors to develop value chains aimed at the transformation of local resources, especially in the sectors of agro-industry, timber, building materials and pharmaceutical products etc. . , African countries are committed to creating Special Economic Zones. According to a report published by the Senegalese Ministry of Economy, Planning and Cooperation in December 2023, there are a total of 237 SEZs in Africa spread across 37 African countries. From North Africa through the center, west, east and south, the creation of special economic zones is the challenge for African governments. And economic zones are expanding in abundance in Africa. According to a report, the African countries hosting the highest number of these zones are Kenya (61), Nigeria (38), Ethiopia (18), Egypt (10) and Cameroon (9 ). But that’s not all.

Cameroon at the school of Benin, Togo and Gabon

Pan-African developer and operator of industrial parks, ARISE Integrated Industrial Platforms (ARISE IIP), in a press release published on Monday September 30, 2024, announced the signing of a partnership agreement with the Autonomous Port of Douala (PAD) for the creation of the industrial zone -port in Dibamba, a town located west of Douala. According to the source, the agreement provides for the creation of an industrial ecosystem that will extend over 517 hectares and include several distinct spaces, including a multimodal logistics area, an integrated industrial park, a one-stop center for administrative procedures and a training. . professional focused on capacity building. The different industries will be distributed by sector, with individual plots of area that will depend on the needs of the investors. The zone will also offer various incentives, including tax and customs benefits, as well as privileged access to global markets according to the source. “By combining our expertise with that of our partners in the Autonomous Port of Douala, we will create an excellent industrial ecosystem here that will promote local resources and attract significant international investments, generating thousands of jobs and sustainable growth for Cameroon CEMAC region, ” said founder and general director of ARISE IIP, Gagan Gupta, quoted in the press release. The implementation of this development policy will be modeled on the example of the Glo-Djigbé Industrial Zone (GDIZ) of 1,640 hectares; Special Economic Zone of Gabon and Togo (Adétikopé Industrial Platform) known as PIA and in other countries on the African continent where the developer of economic zones ARISE has established itself.

Are economic zones the solution to the development of African countries?

It seems that economic zones are a real basis for structural change in African countries if they respect some of the principles of Asian countries that flood Africa today with commercial products. In fact, economic zones are considered geographical spaces demarcated within the borders of a country, which offer tax incentives to investors (tax reduction or elimination), infrastructure (developed land, factory buildings, public services), special customs regime (exemption ). inputs from customs duties and taxes) and simplified administrative procedures. Economic zones have been a catalyst for the economic rise of China and other Asian dragons such as South Korea, Hong Kong and Singapore without forgetting China.

In China, SEZs have added value to the Chinese economy. The creation of special economic zones in the 1980s in Chinese port cities such as Zhangzhou and Shenzhen enabled the Middle Kingdom to structurally transform its economy, by diversifying and increasing its exports of manufactured products. According to the World Bank, China’s SEZs have represented at least 22% of GDP, 46% of FDI and 60% of exports in recent years. They have also generated more than 30 million jobs and accelerated the industrialization, modernization of agriculture and urbanization of the country, while enabling the transfer of technologies, technical know-how and management skills. The example of austerity implemented in these Asian countries would be timely for African countries to take advantage of the opportunities of the African Continental Free Trade Area (AfCFTA) to boost intra-African trade.