Menu

Special Economic Zones

thefreezonebookpicture.....-1

Ekiti special economic zone strategic – Osinbajo

0

Vice President Yemi Osinbajo says the knowledge-based Ekiti Special Economic Zone (SEZ) has the potential to transform the economy of the state and create good tech-based jobs.

Osinbajo delivered a keynote address at the Ekiti Economic Development and Investment Summit tagged Fountain Summit 2021 on Thursday in Ado-Ekiti, Ekiti State.

The theme of the summit is, “Investment Attractiveness and Economic Development: Lessons for Sub-Nationals.’’

The vice president said that knowledge economy had become critical to development in the digital age.

“We have already noted the enormous potential in agriculture and dairy; but clearly the way of the future especially the huge population of young men and women seeking good paying jobs is technology.

“And I think you are in the flow of progress with the planned establishment of the Technology Special Economic Zone; clearly, the future of fast growing economies is in the knowledge economy.

“Every day, we are beginning to see the transition.’’

Citing Shimon Peres, the former Prime Minister of Israel, Osinbajo said that the world had transited the age of territory to that of science as land size and natural resources had given way to science and knowledge economy.

He said that technology had erased land borders and physical offices.

“So young men and women in Ekiti can work from there and earn world class wages.

“This is why the planned investment in Ekiti knowledge economic zone is  strategic and it is exciting to see that the plan is to use business process outsourcing as an anchor.

“A design, I am told, will be a service-led Special Economic Zone, a digital technology hub leveraging its proximity to five different tertiary institutions.

“This is, if one may borrow the term, the future of jobs; certainly, it is the future of jobs and I think we must commend the foresightedness of the state governor and his team for determining that technology, especially, in the knowledge economy is the way to go.

“However, for a digital SEZ to be successful, it must be attractive to digital markets; that means that there must be high quality, well trained grade talents.

“And I am glad to hear already that on account of the reduction of charges for laying of cables for broadband connectivity, the state is already attracting investments in the laying of cables.

“And that I think it is fantastic; an important component of knowledge economy and using that for commercial purposes; so, we need trained local talents,’’

He made reference to the Chief Executive Officer of Apple, Tim Cook, who was asked why his company was investing so much in China.

The vice president quoted  Cook as saying that his company was in  China because China had extraordinary skills– almost 2 million application developers who wrote applications for IOS app store

According to Osinbajo,  gone are the days when a place should be considered as an attractive destination for investment because it has  cheap labour.

“Today, well trained technology and innovation talent is the main thing.

“So, there are three keys to this knowledge economy, which in my opinion is the future; and the three keys are education, education, education.

“And it is important for Ekiti to leverage its famed love and its famed passion for education; I believe you have not lost that edge.

“This is the moment to refocus, especially on Science, Technology, Engineering and Mathematics (STEM) education; this is vital for being able to participate effectively in the fourth industrial revolution; which has launched the digital age and the digital age.’’

According to him, Ekiti must go beyond the Fountain of Knowledge to becoming the fountain of knowledge economy.

He said that aside quality, education also required a strategic framework for imparting technical and vocational skills.

“The importance of having a pool of health well-trained workers such as electricians, fitters, mechanics, laboratory technicians, welders, machine toolists and even web designers is vital for an ecosystem that will be attractive for technology and innovation investments,’’ he said.

The vice president had earlier inaugurated the Ekiti Civic Centre.

In his welcome address, Gov. Kayode Fayemi of Ekiti, said the summit was another significant step to set the state on the path of sustainable economic development.

Fayemi commended the vice president for the role he in implementing the Economic Sustainability Plan which played a significant role in returning Nigeria’ economy to growth following COVID-19 set-back.

The governor said that the summit was to encourage private enterprise and to make the state attractive to investors.

The summit featured a panel discussion in which the vice president, Fayemi, Governors Babajide Sanwo-Olu of Lagos, Nasir el-Rufai of Kaduna and Godwin Obaseki of Edo States deliberated on issues ranging from economy to security and human capital development.

The event also attracted members of the National Assembly, traditional rulers and members of the Federal Executive Council (FEC) including Niyi Adebayo, the Minister of Industry, Trade and Investment, who was the first elected governor of Ekiti State.

Nelson-Chamisa-1-12

Govt to gazette SEZs incentives

0

Government will in the next two weeks gazette investor
incentives and regulations that will guide the functioning of the
Zimbabwe Special Economic Zones Authority (ZimSeza), effectively
bringing it into full operation.

In June last year, Government appointed the board of the Authority,
chaired by former Reserve Bank of Zimbabwe (RBZ) governor Dr Gideon
Gono, but the Authority was yet to become fully operational.
ZimSeza chairman Dr Gideon Gono said once the regulations and
incentives (specifically the non-fiscal incentives) are promulgated, the
Authority will begin approving projects that were on hold.

“It means that by end of this week or next week, the regulations and
incentive packages will be gazetted and once gazetted, we can start
approving projects, we can then begin declaring targeted areas, cities
and towns as special economic zones (SEZs). Government has publicised
its desire for SEZ status for Sunway City here In Msasa/Ruwa, Victoria
Falls, Bulawayo and recently Mutare and Norton,” he said.“We will now, after gazetting the regulations and incentives, request
investors in these places to submit specific projects that speak to the
exact location of their proposed factories, business plans with
projections of exports generation or level of import substitution,
employment creation, technology transfers and introductions, proposed
linkages with local industries and implementation time tables.
“We will look at other attributes such as proximity to raw materials
or markets, road, rail or air networks, waste management programs, power
and water availability, proximity to labour markets and other
amenities.”
ZimSEZA is incorporated in terms of the Zimbabwe Special Economic Zones Act (Chapter 14:34).
The anticipated promulgation of the regulations for the ZimSEZA falls
under Section 57 of the Act, which speaks to the gazetting of
regulations to guide operationalisation of SEZs.Fiscal incentives for SEZs have already been gazetted.
In terms of the fiscal incentives that were gazetted in the Finance
Act of 2017, there is zero-rated corporate income tax for the first five
years of operation with a corporate tax rate of 15 percent applying
thereafter; there is also a duty-free importation on capital equipment.
The other fiscal incentives include a special initial allowance of 50
percent of cost from year one and 25 percent in the subsequent two
years; exemption from non-residents tax on fees for services that are
not locally available; exemption from non-residents tax on fees for
services that are not locally available, and zero-rated capital gains
tax, among others.
“It is the bulk of the non-fiscal issues that will be gazetted within the next two weeks,” said Dr Gono.
He said by last year they had put in place a Special Economic Zone
revival plan for ZiscoSteel, but said approvals and certificates could
not be granted without the regulations and incentives in place.
Zimbabwe’s Special Economic Zones are being established to fulfil the
following objectives: to restore the economy’s capacity to produce
goods and services competitively; to create economies of scale good
enough for the locator of the proposed SEZs to be internationally
competitive, and to ensure inclusive growth emanating from the spread of
growth nodes and diversified provincial offerings.They are also aimed at maximising the economic benefits of a given
geographical location and its stakeholders, and attracting more
investment from the International world.
Meanwhile Dr Gono said the appointment of the inaugural chief
executive officer for the Authority was a key step in effectively
operationalising its functions.
Earlier this year, Government announced the appointment of Edwin Kondo as the CEO of ZimSEZA, with effect from May 1, 2018.
Mr Kondo is a holder of a Masters’ degree in Strategic Management,
Bachelor of Science degree in Mathematics and Physics; Certified Diploma
in accounting and finance (ACCA) and a National Diploma in marketing
management.
DrAmeru

Free Trade Zones Key To Industrialisation, Says Meru

, , , , 0

RETIRED Permanent Secretary and investment
consultant, Dr Adelhelm Meru, has called on state and private sector decision
makers to adequately use existing economic processing zones to speed up the
country’s industrialisation drive and make Tanzania a middle-income nation in
the next seven years.

Dr Meru told a Public-Private Dialogue meeting that attracted senior
government officials and members of the Tanzania Private Sector Foundation
(TPSF) in Dodoma recently that present zones should be profitably used and more
zones created.

Dr Adelhelm Meru        (Photo credit: Alleastafrica)

He said at the moment creation of industrial parks is inevitable. He defined
an industrial park as an area zoned and planned for the purpose of industrial
development, further explaining that the park is one form of special economic
zone (SEZ).

Dr Meru described an SEZ as selected geographical area which is provided
with special business environment to promote priority economic activities,
adding that the SEZ may include industrial parks, Export Processing Zones, free
trade zones, free ports, tourist parks, science and technological parks.

The consultant said Ethiopia, Kenya and Rwanda have made significant
economic gains by making good use of economic processing zones. Outside Africa,
he named China as the country, which he said has used the zones to make
economic wonders within three decades.

He explained that since l978, China has focused on producing and exporting
products from EPZs, turning itself into a world economic giant. “China has made
miracles in the world of industries. It has made huge development strides using
industries. In 2010 Chinese economy was declared the second largest economy in
the world,” he said. Dr Meru called on Tanzania’s decision makers to take a
leaf from China.

Tanzania: Tooku Garments Factory Set for Expansion

, , , , , , , , , 0

TANZANIA Tooku Garments Company Limited, producing
clothing for the US market is set for expansion to increase production in order
to meet demand in the market.
Export Processing Zone Authority (EPZA) Director
General Joseph Simbakalia, said in Dar es Salaam over the weekend during the
tour of the students and staff from the National Defence College (NDC) the
garment factory operating at the Benjamin Mkapa Special Economic Zone, Mabibo
External is one of the success stories.
“Manufacturing for exports is considered
important in generating valuable foreign exchange as well as maintain a
competitive exchange rate,” he said during the tour. He said special
economic zones were increasingly becoming significant avenue in attracting new
investors, as well as touting industrialisation drive towards building strong
industrial economy.

He said the factory that employs about 3,000
Tanzanians is set for expansion in order to increase production. For example,
in the quarter ended September, more than 20 projects worth over 600bn/- were
registered. He said the NDC visits was significant because the country’s
security was closely linked with building strong economy particularly through
industrialisation.
He said the special zones are geographically
designated areas set aside in the country for specifically targeting economic
activities, with support through special arrangements, including laws and
systems, which are often different from those applied in other areas.
Also the special zones are part of an export oriented
development strategy, which can contrast with an important substitution
industrialisation strategy, where the aim is to produce goods that were
formerly imported.
Some of the special zones include the Bagamoyo SEZ,
which is a unique project in the region that will be developed into Industrial
Parks, Trade Parks, Technological Parks, Tourism Industry, Real Estates,
Logistics Centres, Financial Institutions as well as the construction of an
airport and a port.
Others are the Tungi SEZ in Morogoro, which is the
largest industrial, commercial and residential development project under SEZ
Investment Scheme developer by the private sector. The Mtwara Freeport Zone,
for service companies engaging in oil and gas exploration in Mtwara Region will
be developed by private financing.
Source: Tanzania daily news (dar es Salaam)
Calabarfreezone

EXPOUNDING THE DEFINITION OF FREE TRADE ZONE.

, , , , , , , 0

Calabar Free Zone in Calabar, Nigeria

Before we start delving into other areas of
important facts on Free Trade Zone, like linking the Free Trade Zones/ Special
Economic Zones to local industries, and critical analysis of the ecosystem of
the scheme, Let us further expound the definition of Free Zone for the benefit
of other significant publics that may not be well knowledgeable about the
scheme but have part to play in the development and growth of the scheme in
Africa.

FREE ZONES have existed for several centuries. They
were established to encourage centre pot trade, mostly in the form of city wide
zones located on international trade routes. Examples cited by experts include:
Gibraltar (1704), Singapore (1819), Hong Kong (1848), Hamburg (1888), and
Copenhagen (1891).

The World Bank publication on Special Economic Zones
(2008) stated that the modern Free Zones are variants of these traditional,
commercial zones. The principles underlying the basic concept of a Free Zone
include:

·        
Geographically delimited area, usually
physically secured

·        
Single management/administration

·        
Eligibility for benefits based upon
physical location within the Zone

·        
Separate customs area (duty-free
benefits) and streamlined procedures.

The fundamental concept of a Zone is that it is an
alternative policy framework, developed by government, to promote policy
objectives of government. Sometimes this involves a specific geographical
region, often involves specific industry such as banking or insurance, or
companies with some common behavior such as export orientated, high technology
content.

Free Trade Zones are generally established within a
country, although there are few examples of cross border zones, where free
trade areas are established between countries.

The Free Zones of today are quite different from the
Free Zones of the past. Although they serve a largely similar purpose, they
have grown increasingly complex and are thus involved with an increasing volume
and variety of economic transactions. Contrary to the view of the Trade Bureaucrats
and Liberal Trade economists, the liberalization of trade has not eliminated
the need for Free Zones, but rather expanded their roles. As globalization
takes place the formation of Free Zones continues at an increasing rate (Robert
Haywood, 2000). It encourages export manufacturing.

As was stated in our first post and for matter of
emphasis, Free Zones are defined as “outside the customs territory” for the
purposes of the assessment of import duties and taxes. Free Zones typically
allow for duty-and tax-free imports of raw and intermediate materials and, in
many cases capital equipment. This is to lower the cost of production so as to
enable the product compete favourably at the international market.