SEZ in Africa: Causes of the Crisis and Development Potential

Abstract

The relevance of the topic is caused by the fact that the African continent is still both poorly studied and unattractive for most foreign investors. The aim of the study is to determine the main problems in the creation of SEZ in Africa and to analyze possible directions for the effective development of these structures in the region. As research methods, the authors chose a general scientific methodology based on the works of scientists specializing in the problems of socio-economic development and investment attractiveness of Africa, particularly: T. Farole, W. Angko, J. Akinci, J. Quake, and L. Thompson. The authors also used the data of reports of international organizations devoted to the analysis of the functioning of the SEZs in Africa. In the course of the study, we obtained results demonstrating the presence of sufficient potential for the successful development of existing zones or for the creation of at least one SEZ in almost every African state in the near future, which will allow countries to develop and provide stable sources of income for the local population involved in the SEZ. Based on the results of the study, we concluded that if Africa is seriously considering adopting a SEZ model for development, it needs an urgent integration of policy adjustments, like urgent and fundamental reforms to change attitudes towards foreign capital in order to stimulate industrialization and promote more active participation of Africa in the worldwide market.