The Ethiopian federal government has mandated that industrial parks transition into Special Economic Zones (SEZs) within 20 days. This directive was revealed during discussions with investors at Hawassa Industrial Park (HIP) on August 20, 2024, by the Ethiopian Investment Commission (EIC). Currently, only the Dire Dawa Industrial Park has been designated as an SEZ. The transition to SEZs is expected to provide customs control, trade facilitation, and tax incentives for businesses operating within these zones. To qualify for SEZ designation, a minimum of 50 hectares of land and a capital investment of USD 75 million are required. Notably, exporters in SEZs can retain 100% of their foreign exchange earnings, while those outside can only retain 50%. This move comes amid hopes for the reinstatement of Ethiopia's African Growth and Opportunity Act (AGOA) privileges, spurred by recent peaceful resolutions and ongoing economic liberalization efforts. [46d91bcd]
In India, exports from special economic zones (SEZs) increased by over 4% to reach $163.69 billion in the financial year 2023-24. SEZs are designated areas that enjoy certain tax benefits and trade advantages, treated as foreign territories for trade and customs duties. As of March 31, 2024, there are 423 approved SEZs in India, with 280 operational and 5,711 approved units. Major export destinations for SEZs include the United Arab Emirates, the United States, the United Kingdom, Australia, and Singapore. The Indian government is considering measures to further promote SEZs, such as implementing a flexible framework for domestic market sales and streamlining approval processes for units. [b1529b3b] [fec77f06]
In Ghana, the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, in partnership with the Kiel Institute for World Economy (IfW) in Germany, hosted a National Policy Forum on Economic Zones in Accra. The forum, funded by Riksbankens Jubileumsfond and the Volkswagen Foundation, focused on the theme 'Special Economic Zones: A Force for Industrialization'. Mr. Michael Oquaye Junior, CEO of the Ghana Free Zones Authority (GFZA), emphasized the importance of SEZs in Ghana's economic trajectory, especially with the implementation of the African Continental Free Trade Area (AfCFTA). He noted that SEZs in Ghana cover over 7,000 acres and have significantly contributed to employment and industrial activities. SEZ companies directly employed about 29,567 people in 2020, which increased to 35,399 by 2023, generating nearly 500,000 indirect jobs. Export revenues from SEZs also grew from US$1.5 billion to US$1.7 billion over the same period. [5d436cc8]
Zimbabwe has attracted US$2.5 billion in investments through SEZs and Public-Private Partnerships (PPPs), aimed at creating jobs and boosting economic growth. The government has implemented various reforms to improve the business environment and attract investment, focusing on sectors such as agriculture, manufacturing, tourism, and infrastructure. Plans are underway to establish more SEZs and PPPs to further promote economic development. [5eda1429] [fec77f06]