Most African countries see industrialization as part of their path to economic growth. Many are developing Special Economic Zones (SEZs) to improve economic performance, but they are experiencing implementation challenges. As a result, there is a growing demand to learn from successful strategies in SEZ development. Building on earlier exchanges and capacity development facilitated by the World Bank, 18 African countries participated in a regional conference with the theme of the role of Free Zones in achieving Millennium Development Goals in Africa.

The governments of Africa want to improve the investment climate and reduce poverty in their countries through modernization and industrialization. Learning from the Asian experience, many governments are developing Special Economic Zones (SEZs) to achieve these goals. Chinese knowledge, experience, and investment have been invaluable in developing these zones. However, most African countries still lack the infrastructure to make such SEZs effective and competitive on international markets.

Most West African farmers need to reduce their reliance on the region’s erratic rainfall patterns if they want to increase crop yields and diversify from traditional commodity production. A number of low-cost technologies for small-scale private irrigation, such as treadle pumps and manual well-drilling equipment, have been tested in West Africa, but financial, regulatory, and communications obstacles have limited their widespread use.

After learning about the success of East Asian countries in developing their economies and attracting Foreign Direct Investment (FDI) through Special Economic Zones (SEZ), many African governments wanted to use the same strategy to improve their economic performance. However, most African countries lack the capacity to design and implement SEZs, including lack of policy framework clarity, difficulties in physical planning and land administration, and insufficient regulatory and administrative knowledge. They have also not being very successful in involving the private sector in SEZs.

Growth in the Information Technology and Business Process Outsourcing sector (IT-BPO) can transform a country’s economy and improve the lives of its citizens. No country is a better example than India, which has achieved phenomenal growth in this sector. As of 2010, India could boast of a 64 percent share of globally off-shored IT services and a 37 percent share in IT-enabled services (ITES)¹.  Skills development has been a key driver of that growth.