Special Economic Zones in Africa

Farole, Thomas; Moberg, Lotta

doi:10.1093/acprof:oso/9780198796954.003.0012

Cited by 19 publications

(15 citation statements)

References 3 publications

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“…78 This means that China does permit a special type of SEZ that is privately owned, a lesson that South Africa should have followed. 79 The establishment of Russian SEZs emanates from a large-scale federal project mainly aimed at attracting FDI and Russian investment in selected industries, such as shipbuilding, tourism, high-tech sectors of the economy and import substituting industries. Russian SEZs are entirely owned by the state.…”

Section: Ownership Of Sezsmentioning

confidence: 99%

Evaluating South Africa's Special Economic Zones

Qumba

2023

J. Afr. law

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Special economic zones (SEZs) can be described as “carved out jurisdictions within the overall jurisdiction of a state in order to introduce different laws and regulations that are usually more trade and investment friendly”. South Africa's SEZs are created under the Special Economic Zones Act 16 of 2014. This article analyses the country's legal framework for SEZs, which legal scholars have thus far only examined from a purely economic perspective. It provides a brief historical overview of industrial development zones, examines the 2014 act and suggests some reforms within the SEZ legislative framework. A comparative analysis is provided by drawing some lessons from BRICS member countries that have a successful record in operationalizing SEZs.

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Section: Ownership Of Sezsmentioning

confidence: 99%

Evaluating South Africa's Special Economic Zones

Qumba

2023

J. Afr. law

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“…As discussed, East Asian, Central American, and Caribbean basin countries have realized growth through SEZs due to a competent workforce, good infrastructure, and an effective management strategy (World Bank 2011). They have also unlocked agglomeration economies by overcoming minimum size thresholds and leveraging scale economies (Collier and Page 2009;Farole and Moberg 2017). In contrast, SEZs in sub-Saharan Africa have enhanced manufacturing and exports in low-skill, labour-intensive industries.…”

Section: Application and Adoption Of Strategies To Spur Growth And Employment In Southern Africamentioning

confidence: 99%

Special economic zones and transnational zones as tools for Southern Africa’s growth: Lessons from international best practices

Karambakuwa¹,

Ncwadi²,

Matekenya³

et al. 2020

WIDER Working Paper

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The paper evaluates strategies for developing successful special economic zones and transnational zones for Southern African countries to spur growth and employment. Most special economic zones implemented in Southern Africa have largely failed to bring adequate growth and employment due to numerous constraints. Globally, selected countries have successfully implemented export-oriented industries through such spatial industrial policy. We review case studies across the world by comparing different regions on selected indicators related to the best-practice framework developed through this study. The framework represents the five key components of successful special enterprise zones, namely: institutional arrangements; running (operational) framework; expansion framework; attaining/achieving framework; and reflection/review mechanisms. We identify best practice and review the implications for implementation and sustainability strategy in Southern Africa. The main findings point to unique lessons from international best practice on the establishment and operational strategy for zones and opportunities for transnational zones.

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“…121 Based on the definition of SEZs, the fiscal regimes are more liberal than those of the domestic economy. 122 An SEZ is accordingly a typical example of a preferential regime. In deciding whether a regime is harmful, BEPS Action 5 requires five key factors.…”

Section: Sezs and Base Erosion And Profit Shifting (Beps)mentioning

confidence: 99%

The Pervasive Problem of Special Economic Zones for International Economic Law: Tax, Investment, and Trade Issues

Chaisse

2020

World Trade Review

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Special Economic Zones (SEZs) have been a huge success and brought a great number of benefits to the whole world. With different kinds of incentives, SEZs have created favorable conditions in order to attract foreign investors. In this article, several specific issues are considered. First, whether SEZs are legal under international economic law (IEL). Second, what kind of specific issues they raise under IEL. Thirdly, what measures governments can take in order not to be challenged. The first section illustrates the definition of SEZs and their rapid development; the second section will consider the interaction between SEZs and international tax law, especially the base erosion and profit shifting (BEPS) Action 5; the third section focuses on the relationship between SEZs and investment agreements and the disputes raised as a consequence; the fourth section will talk about SEZs and the World Trade Organization (WTO), as some incentives used by SEZs may not be compatible with WTO regulations. The article shows that SEZs can be harmful. For one thing, tax incentives applied in SEZs may lead to tax evasion, and the competitive circumstances between states may be changed. For another thing, the frequent changes of policies in SEZs may result in indirect expropriation, and investor-state arbitration under investment treaties can be used by foreign investors to protect their SEZ-related benefits. In addition, although WTO rules do not explicitly regulate SEZs, a number of measures, such as subsidies, do fall under the ambit of WTO rules, and these measures cannot be discriminatory.

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Special Economic Zones in Africa

Cited by 19 publications

References 3 publications

Evaluating South Africa's Special Economic Zones

Evaluating South Africa's Special Economic Zones

Special economic zones and transnational zones as tools for Southern Africa’s growth: Lessons from international best practices

The Pervasive Problem of Special Economic Zones for International Economic Law: Tax, Investment, and Trade Issues

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