Unlocking investment opportunities in Africa

In Africa, Special Economic Zones (SEZs) have emerged as integral drivers of economic growth and industrialization. With over 220 operational SEZs on the continent, these zones are positioned to attract quality investments, spur industrial development, and generate employment opportunities. CNBC Africa recently interviewed Ahmed Bennis, the Managing Director of Tanger Med Zones and the Secretary General of the Africa Economic Zone Organization, shedding light on the transformative potential of SEZs in Africa. Bennis highlighted the need for a unique model tailored to the African context, emphasizing the role of SEZs in advancing sustainable industrial zones in the region. The annual meeting of the Africa Economic Zone Organization serves as a platform to address challenges, assess achievements, and propel the development of an African SEZ model. Key priorities include sustainable industrial development, social inclusion, SME support, and fostering linkages with local markets. Policymakers, international institutions, and partners are pivotal in driving these initiatives forward. In terms of economic impact, SEZs are instrumental in catalyzing Africa's industrialization agenda, particularly in light of the African Continental Free Trade Area. By enhancing connectivity and trade performance, SEZs play a vital role in integrating African economies into the global value chain. While Africa's current contribution to global trade is modest, SEZs and associated logistics infrastructure hold promise in bolstering the continent's trade engagement. Significant investments have been channeled into SEZ development, with approximately $5 billion invested, 140,000 hectares dedicated, and 5 million jobs created. This underscores the potential of SEZs as engines for Africa's growth. Bennis underscored the importance of accelerating digitization, enhancing governance models, and engaging the private sector to sustain this momentum. Despite evolving investment landscapes and investor apprehension, SEZs offer compelling value propositions for investors, leveraging Africa's sizable market and growth opportunities. Successful SEZ cases exemplify the competitive advantages and incentives that can attract foreign investments. To optimize SEZ ecosystems, key challenges must be addressed. Quality infrastructure, skill development, market access, and government support constitute fundamental pillars for SEZ success. Bennis emphasized the pivotal role of SEZs in driving Africa's development trajectory, calling for collaborative efforts to overcome obstacles and unlock the full potential of these economic zones.