African SEZs & GVCs in the Age of Automation

Is the African dream of industrialisation via special economic zones (SEZs) hosting global value chains (GVCs) feasible? SEZs are “demarcated geographic areas contained within a country’s national boundaries where the rules of business are different from those that prevail in the national territory.” Key success factors for SEZs are cheap labour, large domestic markets, proximity to inputs, and high quality infrastructure, supported by strong institutions and leadership. In a way, many SEZs are cross-border versions of industrial parks, designed to enhance industrialization by attracting investment, improving export performance, creating employment, and generating “cluster effects” among tenants.Published versio