Africa Revamps Special Economic Zones to Drive Industrial Growth Under AfCFTA

A major policy shift is underway in Africa‘s economic integration agenda following strong commitments made at the just-ended inaugural Regional Conference on Special Economic Zones (SEZs) in Djibouti. The conference, organised by the AfCFTA Secretariat in collaboration with the Government of Djibouti, marks a turning point in how the continent seeks to leverage SEZs not merely as investment enclaves but as integral engines of industrial production and cross-border trade under the AfCFTA.

Held from April 21 to 22, the gathering brought together senior government officials, SEZ developers, financiers, and private sector leaders to recalibrate Africa’s SEZ model. Central to the discussions was a landmark commitment to implement a Ministerial Regulation that recognises goods produced in SEZs as qualifying under the AfCFTA Rules of Origin. This move is expected to resolve longstanding policy ambiguities and unlock seamless movement of SEZ-manufactured goods across the continent.

Also emerging from the conference was an agreement to align national SEZ policies with AfCFTA trade protocols. This creates a harmonised regulatory environment that enhances investor confidence and reduces operational bottlenecks for manufacturers operating across multiple African jurisdictions.

In his closing remarks, AfCFTA Secretary-General Wamkele Mene described SEZs as pivotal to Africa’s efforts to industrialise in the face of global uncertainty.
“The AfCFTA is Africa’s response to global trade fragmentation. Special Economic Zones are not just policy instruments. They are practical tools for investment, innovation and resilience. If aligned with the AfCFTA, they can unlock unprecedented growth across the continent,” he said.

Beyond regulatory convergence, the conference also sharpened focus on scaling intra-African infrastructure investment and building resilient regional value chains. Stakeholders pushed for stronger public-private partnerships to ensure long-term impact. Delegates explored mechanisms such as the Pan-African Payment and Settlement System (PAPSS), the Adjustment Fund, and the Non-Tariff Barriers (NTB) Online Mechanism to support this shift.

Opening the event on behalf of President Ismail Omar Guelleh, Djibouti’s Prime Minister Abdoulkader Kamil Mohamed made a strong case for SEZs as strategic platforms for shared prosperity.
“Djibouti’s strategic location must serve Africa’s broader vision. We see Special Economic Zones as engines of opportunity. With the AfCFTA, we can transform our geography into shared prosperity,” he noted.

Djibouti’s positioning as a continental logistics hub connecting Africa, the Middle East and Asia lent practical weight to the event. The Chairperson of the African Union Commission, Mahmoud Ali Youssouf, added that:
“Djibouti is not only a bridge between continents. It is an example of what can be achieved when infrastructure, policy and vision work together. It sets a benchmark for the continent.”

With over two dozen African countries operating SEZs, often under varying national frameworks, the Djibouti meeting signalled a unified effort to transition from fragmented industrial strategies to a continental model. This new direction prioritises regional trade, value addition and sustainability.

Last Updated on April 23, 2025 by samboad