ALGIERS, Feb. 13 (Xinhua) — Algeria announced on Tuesday an intiative to open free trade zones in 2024 to foster collaboration with five neighboring countries, the official APS news agency reported.
The initiative would start with Mauritania, followed by the two Sahel countries Mali and Niger, in addition to Tunisia and Libya, Algerian President Abdelmadjid Tebboune said during the 41st meeting of the Steering Committee of the Heads of State and Government of the New Partnership for Africa’s Development.
Underscoring Algeria’s dedication to economic development and continental integration, the president emphasized the significance of fortifying economic integration processes in Africa.
Last December, Algeria formally became a participant of the Guided Trade Initiative under the African Continental Free Trade Area agreement. ■
Special economic zones (SEZs) in South Africa have not fully lived up to their potential — as has been the case in many African countries — to create jobs, beneficiate raw materials, develop new industries and transfer skills and technology from foreign companies.
There are aspects of South Africa’s SEZ model that clearly need to change, one being that the zones must be made to fit within a long-term development plan rather than be ad hoc projects, which many of the country’s SEZs are.
Before special economic zones are considered as a catalyst for development, it is critical to assess the country’s comparative advantages. In other words, what it can do with domestic resources, capital and skills, and what will need to be built with outside help. As part of this, a comprehensive analysis of the country’s position in the global economy, trade and supply chains is required.
There must also be a business case for establishing SEZs. If the intention, for example, is to attract foreign direct investment, the objective must be integrated into a long-term national development plan.
This means there must be a global demand and market for the products manufactured in these zones, and they must be embedded in the country’s comparative advantage. An SEZ cannot be established based on political, ideological and interest-group considerations — as many special economic zones in South Africa have been.
There must also be pragmatic and credible laws, regulations and institutional frameworks to govern SEZs. And governments must implement these consistently, honestly and competently to foster investor, market and society confidence that SEZs are not simply another avenue for corruption, self-enrichment and failure. The business environment must be conducive, efficient and friendly. The costs of doing business — registration, logistics and customs — should be conducive to companies setting up.
Public infrastructure — power, rail and water — for SEZs must be working, reliable and cost effective. Poor, unreliable or no infrastructure is a significant factor increasing the costs of doing business, global pricing competitiveness of products manufactured and of labour.
Sound infrastructure is a vital competitive advantage for investors to set up shop. The neglect and collapse of infrastructure linked to power outages, the broken rail system and port delays have undermined the competitiveness of South Africa’s SEZs.
The zones could be fully government-owned — as is the case with many in South Africa — or privately owned or public-private arrangements.
In developing countries, the state-owned SEZs have mostly failed because the public sector’s governance failures such as corruption, incompetence and red tape are repeated in these zones. Public-private arrangements, in which the private sector co-govern and co-manage, have generally been the most successful.
Supported by bankable feasibility studies and business cases, the OR Tambo SEZ is leveraging its competitive location next to and in proximity to sub-Saharan Africa’s largest and busiest airport to promote the production and export of products that utilize air freight as a mode of transport.
The OR Tambo SEZ attended the Infrastructure Africa Conference held in Cape Town on 16 and 17 July 2024. The conference, which, inter alia, focused on the status and capabilities of Africa’s infrastructure agenda, connected stakeholders from the continent on issues that promote and challenge infrastructure development.
These discussions are central to the OR Tambo SEZ’s development trajectory, which is presently focused on the development of infrastructure at its ORTIA SEZ Precinct 2 location (a 29 ha land parcel located next to OR Tambo International Airport and suitable for the production and export of high-value light weight products that move via air freight) and the Springs Precinct (a 13,9 ha land parcel located next to a major platinum refinery and suitable for the production of platinum related products such as fuel cells and electrolysers).
In respect of the development of large infrastructure projects such as Special Economic Zones, the conference provided insight on the importance of ensuring that bankable feasibility studies are undertaken; reducing project risk and facilitating access to development financing. In this regard, it was noted that the challenge for African projects was not lack of financing but rather, that sometimes, insufficient project preparation work resulted in an elevation of project risks that made the unlocking of the necessary development funding problematic.
Another discussion theme at the 2-day conference was Public-Private Partnerships (PPPs), specifically the importance of structuring projects in a way that encourages private sector to participate in large infrastructure continental projects.
Akey component of the economic policies of KwaZulu-Natal and South Africa is the support of Special Economic Zones (SEZs). In addition to its two existing zones, the province wants to establish two new ones.
Leather and textiles will be the focus of the planned SEZs in the Newcastle-Ladysmith corridor, an area where those industries already flourish. The province’s two established zones, Dube TradePort (at King Shaka International Airport, pictured) and Richards Bay Industrial Development Zone (RBIDZ) are attracting investments in a range of targeted sectors, agricultural exports and logistics, manufacturing and energy, among others.
TradeZone2 at Dube TradePort has been completed and has started attracting investors. These include:
Futurelife, food-processors, R57-million
LM Diapers, expansion of plant, R75-million
Synergy Blenders, chemical manufacturing, R93-million
KwaZulu-Natal is the second-largest manufacturing centre in South Africa, contributing 21% to national manufacturing GDP. The strongest export sectors are base metals (32% including aluminium), mineral products such as ores, vehicles and chemical products.
The sector is also a major contributor to the eThekwini Municipality GDP. The city’s economy grew 4.9% in 2021, 73% of which came from manufacturing, finance, business and trade.
“Manufacturing is responsible for 20% of the employment opportunities in eThekwini which translates to 176 000 jobs of which 83% are semi-skilled,” says Takalani Rathiyaya, Head of the Economic Development Programmes Department at the eThekwini Municipality. Over the last five years the municipality established four manufacturing clusters that collectively have over 200 member firms.
The Tianjin Free Trade Zone has released China’s first data Negative List outlining the types of data that must undergo a security review by China’s cybersecurity bureau to be transferred out of China. While the Negative List maintains previously set thresholds for the volume of data that companies can handle before triggering data export compliance procedures, it also clarifies compliance requirements for companies in the free trade zone operating in certain industries.
The China (Tianjin) Pilot Free Trade Zone Data Export Management List (Negative List) (2024 Edition), released by the Tianjin FTZ Management Committee and the Tianjin Municipal Commerce Bureau on May 8, 2024, is the first CBDT Negative List released in China. Ostensibly, data that is not included in the Negative List can be freely transferred out of China, which would significantly ease compliance requirements for companies based in the Tianjin FTZ.
However, many companies, particularly those handling large volumes of data, will continue to be subject to certain compliance requirements to export data overseas. The Negative List nonetheless provides helpful clarity for companies by specifying the types of data subject to stricter requirements, regardless of the amount, and will allow for easier data assessment and administrative planning.
Shanghai on Friday released a white list to expedite cross-border data transfers for companies that operate in its pilot free-trade zone, including electric vehicle maker Tesla, providing a much-needed boost for the country’s efforts to retain and reel in more international business.
The first batch of this “general data” list, which covers 64 categories, will enable enterprises involved in intelligent connected vehicles, publicly offered funds and biopharmaceuticals to make data transfers overseas without obtaining regulatory approval, according to a WeChat post by authorities at Lingang New Area, part of Shanghai’s free-trade zone in Pudong district.
Oscar Middle East today broke ground on its state-of-the-art liquid bulk terminal at Jebel Ali Free Zone (Jafza), with a total project investment of AED 150 million.
The quayside facility, with a total capacity of 45,400 m3, will provide specialised storage and bulk-breaking services for chemicals and base oils. The project is planned in two phases, with Phase 1 expected to be fully operational within 16 months. Additional storage capacity will be added in Phase 2, further enhancing the facility’s capabilities.
The groundbreaking ceremony was attended by Abdulla Bin Damithan, CEO & Managing Director, DP World GCC, Abdulla Al Hashmi, Chief Operating Officer of Parks & Zones at DP World GCC, Dr. Talal El Sayed, Chairman of Oscar Middle East, and senior representatives from the two companies.
Jebel Ali Free Zone (Jafza) is emerging as the powerhouse driving the unprecedented growth of India-UAE trade, with a 28% year-on-year surge in new Indian businesses setting up in the trade and logistics hub.
DP World’s flagship economic zone has seen 190 new companies from India established in 2023, bringing the total number of Indian businesses in Jafza up by 15% year-on-year to over 1,500.
The surge in customers was announced following a series of Jafza trade events in Mumbai and Hyderabad that were held in coordination with the Confederation of Indian Industry (CII) and the UAE-India Business Council (UIBC).
Bharat Mart, whose foundation stone was laid in February 2024 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Indian Prime Minister Narendra Modi, took the spotlight at the events.
Scheduled to open in 2026, Bharat Mart will allow Indian traders to reach local and international customers in the Middle East, Africa and Europe by providing comprehensive supply chain solutions that integrate retail, warehousing, and logistics services into one streamlined operation. The project has generated nearly 3,000 business leads in less than one month.
Jebel Ali Free Zone (Jafza) and Eaton, a global intelligent power management company, today signed an agreement to build a new sustainable campus, bringing together Eaton’s Dubai-based commercial, manufacturing, and support functions while providing capacity for growth in the future.
The project will extend Eaton’s research, engineering, and manufacturing capacity and aims to significantly boost Dubai’s capabilities in the advanced manufacturing of electrical and electronic components that are required to deliver safe and efficient power for several industries including data centres, buildings, and solar energy.
The construction of the facility, covering more than 500,000 square feet, will begin in 2025 and is expected to be completed in 2026. The manufacturing capability will be complemented by a new R&D facility to house a state-of-the-art centre dedicated to sustainable manufacturing, power management, machine learning, AI, and other related fields. The project will create approximately 700 jobs, ranging from high-skilled engineering roles to advanced manufacturing positions.
The Federal Government has stated that it will ensure that Nigerian businesses maximise the benefits of the African Continental Free Trade Area.
President Bola Tinubu disclosed this on Tuesday while speaking at the launching ceremony of the Guided Trade Initiative under the African Continental Free Trade Area in Lagos.
According to Tinubu, who was represented at the event by the Secretary to the Government of the Federation, Senator George Akume, AfCFTA has the potential to transform the continent’s economic landscape.
The President stated that AfCFTA was not just a trade agreement but a bold vision for Africa’s industrialisation, equitable growth, and the prosperity of the people.
“It requires us to embrace the challenges ahead with enthusiasm and readiness to tackle them headlong in the interest of our stakeholders and collective survival.
“Our commitment to this agreement is underscored by our recognition of the fact that making AfCFTA work is not an option, but a compelling necessity,” he said.
The President noted that the successful implementation of AfCFTA would come with its challenges and Nigeria must confront those challenges with uncommon determination.
According to Tinubu, the strategy to be deployed will include the creation of an enabling environment that supports businesses, encourages innovation, and fosters competitiveness.
He added that there would also be close collaboration with continental partners in a manner that would ensure that the benefits of AfCFTA were equitably distributed and that no one was left behind.
“The companies that are pioneering this initiative today have demonstrated their belief in the potential of made-in-Nigeria products and the immense opportunities that AfCFTA presents.
“These trailblazing businesses have made history by taking this bold step, and they set a precedent for others to follow. Their success is our success, and their journey is our journey,” he expounded.
The President stated that trade has inherently become highly competitive and that the country cannot become complacent.
He remarked that the country must be prepared to be innovative, and efficient and must relentlessly strive to excel.
“Nigeria’s competitive edge is underscored by several factors, including strategic location, robust economic fundamentals, and a dynamic entrepreneurial spirit. We must therefore leverage the opportunities presented by AfCFTA.