TheCable

President Muhammadu Buhari says Africa must rise to compete favourably with free trade zones in other parts of the world.

Buhari said this on Thursday at the 5th African Union symposium on Special Economic Zones (SEZs) and Green Industrialisation in Abuja.

The 3-day event themed ‘African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development’ was done alongside the 7th edition of the African Economic Zones Organisation (AEZO) annual meeting.

Over 400 delegates representing government officials, ministers, heads of international organisations, eminent experts, academia, policymakers, financial institutions, economic zones, investment and promotion agencies attended across 52 African economic zones.

Buhari, who was represented by Umana Okon Umana, minister of Niger Delta Affairs, urged stakeholders to critically examine factors inhibiting the growth of free zones in Africa and come up with appropriate strategies to address identified challenges.

He stated that the economic zones in Nigeria scheme was to use the export processing zones to promote export-oriented industries.

He, however, said the scheme has over the years evolved from a strictly export-oriented manufacturing strategy to a more liberal scheme that allows a greater level of interaction with the domestic economy while simultaneously driving an increase in its level of attractiveness to potential investors.

“We are ready to partner with the special economic zones in Africa to benefit from the Africa Continental Free Trade Area Agreement,” he said.

“I commend the Africa Economic Zones Organisation for bringing together the operators of the zones. This will enhance intra-African trade and promote peer review among the operators.

“I urge you to critically examine the factors inhibiting the growth of free zones in Africa and come up with appropriate strategies of addressing any identified challenges.”

On his part, Akinwumi Adesina, president of the African Development Bank (AfDB), said the role of SEZs is to accelerate sustainable industrial value chain development.

Adesina also outlined several interventions of pan-African banks to change Africa’s development challenges, adding that the continent has huge potential never seen elsewhere.

Adesoji Adesugba, chief executive officer, Nigeria Export Processing Zones Authority (NEPZA), said the AfCFTA has been a great opportunity for Nigeria since its inception 30 years ago.

“The free zone scheme has indeed opened implausible business opportunities for Nigeria, investors, enterprises and all the key stakeholders in the 30 years of its existence,” he said.

“African Special Economic Zones are considered as one of the main instruments to stimulate sound economic reforms, promote quality foreign direct investments (FDIs), and accelerate industrialisation across the continent.”

According to the African Economic Zones outlook (2021), more than 200 SEZs are operational in Africa while 73 projects have been announced for completion in 47 countries. 

In addition, 150,000 hectares of land is dedicated to SEZs while over $2.6 billion has been mobilised in investments dedicated to agro-processing, manufacturing and services.

African Special Economic Zones are considered as one of the main instruments that stimulate economic reforms, promote quality foreign direct investments (FDIs), and accelerate industrialisation across the continent.