1 °c
London
Sunday, April 11, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

How can economic zones in Africa sustain growth?

FurtherAfrica by FurtherAfrica
June 4, 2018
in Africa, Development, Economy, Industry and Commerce, Zimbabwe
Reading Time: 3 mins read
0
How can economic zones in Africa sustain growth?
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

At the Beijing Summit of the Forum on China-Africa Cooperation in 2006, China promised to establish three to five overseas economic and trade cooperation zones in African countries within three years.

So far, China has built six economic and trade cooperation zones in Africa. But with the development of China-Africa economic and trade cooperation, more challenges to sustainable development have emerged.

For example, amid the global financial crisis in 2009, the Zambia-China Economic and Trade Cooperation Zone began to build an industrial park in the Zambian capital Lusaka.

Near the Lusaka International Airport, the park provides links to the markets of Zambia and southern Africa with a focus on the development of business services, modern agriculture, processing and manufacturing, real estate and ancillary services. Its development goal is to become a modern airport industrial park that functions as a free trade zone.

However, as of July 2017, only a small portion of the park had been built, and only two companies were operating there. This situation reflects the challenges facing the Lusaka park.

The infrastructure outside the park is poor. The supporting infrastructure outside the park is the responsibility of the host government.

However, due to low investment by the Zambian government, weak infrastructure has become a bottleneck in the economic and social development of the park. In terms of transportation, problems like high costs, long import and export cycles and inadequate logistics are prominent.

Local policies on such issues as taxes are inconsistent. Zambia has a multi-party system, and alternating administrations are likely to make changes in laws and policies. To repay political favors, each new government may rescind privileges granted to foreign investors by the previous government.

There are also funding shortages. Economic and trade cooperation zones require large investment and have long payback periods. Most of these zones face different degrees of financial pressure, including the Zambia-China Economic and Trade Cooperation Zone.

The construction cost of supporting facilities in such a zone can be two to three times more than for domestic ones. Depending purely on corporate stakeholders to fund the park means the park could be a highly risky bet.

Security is another concern. Health problems in Zambia are serious, and diseases spread quickly, posing a serious threat to Zambian workers.

Moreover, there is an unfavorable public opinion environment. Western countries constantly make claims of neocolonialism, resource plundering, disregard for human rights and the China threat theory in Zambia. This magnifies small problems and puts Chinese companies at the center of controversy.

The lack of professionals is also an issue. The Zambian government requires that foreign-invested enterprises must employ eight local people for each work visa issued. So if China wants to invest in technology-intensive industries in Zambia, it will inevitably face labor shortages.

Based on this, the Chinese government should increase communication and guidance through such means as bilateral high-level coordination, financial support and human resources, to promote the sustainable development of China-Africa economic and trade cooperation zones.

We need to strengthen government-to-government communication. The host governments of parks are encouraged to promote preferential policies and provide the necessary supporting infrastructure.

We also need to strengthen capital guidance. For example, we can use the newly established China-Africa Production Capacity Cooperation Fund to support the establishment, management and promotion of special economic zones.

This fund can overcome the financing bottlenecks facing infrastructure at the early stage, provide financial support for the management of the special zone and promote established development zones.

In addition, foreign aid funding can help build supporting infrastructure outside the park.

We also need to expand human resources training. We can start with exchange programs between representatives of African governments and managers of special economic zones, creating a comprehensive and pan-African special economic zone training exchange program.

We can also provide technical education and training in key industries in special economic zones.

Under the framework of the China-Africa Cooperation Forum, the Chinese government can provide education and training services to African governments in accordance with the industrial requirements of the special economic zones to meet the employment needs of enterprises that want to enter the park.

Source: Global Times

Related

Tags: africaChina-Africa CooperationEconomic and Trade Cooperation ZoneFeatureLusakaSpecial Economic ZoneTax benefitsTrade Cooperation Zone.Zambiaафриказамбияアフリカザンビア赞比亚非洲
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

World Bank grants US$130M to support agriculture in Angola

Next Post

Angola negotiates the termination of the concession with Caioporto

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Weekend: Love yourself and celebrate your victories!
Lifestyle

Weekend: Love yourself and celebrate your victories!

by Sibongile Nchifor
April 10, 2021
Ethiopian Airlines celebrates 75th anniversary
Aviation

Ethiopian Airlines celebrates 75th anniversary

by Mark-Anthony Johnson
April 10, 2021
African leaders pay tribute to Prince Philip
Diplomacy

African leaders pay tribute to Prince Philip

by FurtherAfrica
April 10, 2021
Namibia Rare Earths to survey prospective cobalt-copper project in the north
AfCFTA

AfCFTA: Namibia tells Secretary-General it is ready to increase trade with Africa

by Mark-Anthony Johnson
April 9, 2021
Opinion: Can an investment summit save Trump’s Africa policy?
Energy

U.S. Africa Energy Forum 2021 to promote U.S. as a primary investor in African Energy

by Africa Oil & Power
April 9, 2021
Next Post
Angola: Cabinda’s Caio Port investment deal signed

Angola negotiates the termination of the concession with Caioporto

Angola: 400Km of roads repaired in Cunene

Tanzania sets aside 4 million for road linking with Zambia, Malawi

West Africa crude-IOC buys Angolan, Nigerian trades on spot

Total E&P Angola takes over Block 48 operations

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?