PAMA Pushes New Economic Zone Model To Boost Industrial Growth In Africa

Pan-African Manufacturers Association (PAMA) has stated that the proposed new approach to Special Economic Zones (SEZ) will focus on building a more integrated and sustainable model, with priorities like sealing domestic leakage gaps and promoting sector-specialized industrial corridors.

The association in its February 2026 news bulletin stated that Africa’s adoption of Special Economic Zones has been a strategic decision rooted in the need for economic development.

“These zones were established to create controlled environments addressing challenges such as unreliable infrastructure, customs inefficiencies, and slow regulatory processes. For many years, this approach has proven effective, with countries like Ethiopia, Kenya, Morocco, Egypt, and Nigeria showcasing their industrial aspirations through these zones. Currently, Africa boasts over 200 SEZs, though their distribution across regions varies significantly,” it said.

PAMA noted that “North Africa leads with approximately 29 per cent of the continent’s SEZs, followed closely by East Africa (26 per cent), West Africa (24 per cent), Southern Africa (15 per cent), and Central Africa (six per cent.

“This distribution highlights the stronger institutional maturity and earlier adoption of SEZ frameworks in North and East Africa. Nigeria and Morocco stand out with the highest numbers of operational SEZs, while Egypt, Ethiopia, and Kenya also play significant roles. Despite the existence of SEZ frameworks in 47 out of Africa’s 54 countries, the operational depth and industrial clustering remain concentrated in a few leading economies.”

The Association added that “governance structures within these SEZs are predominantly hybrid, with around 53 per cent operating under public–private partnerships, 38 per cent being publicly managed, and only nine per cent fully private.

For over three decades, SEZs have formed a crucial part of Africa’s industrial policy, providing tax incentives, streamlined regulations, and focused infrastructure to attract investment.”

It noted that “initially, Africa’s SEZs were strategically designed to address structural weaknesses by creating islands of stability within challenging economic conditions. The zones served as practical solutions to attract capital while broader economic reforms were underway.

The model has successfully facilitated infrastructure development and export growth in several regions. However, it has also revealed structural inefficiencies and policy gaps that need to be addressed for sustainable long-term value creation.”

The association disclosed that “while some suggest that modest adjustments may suffice to improve current SEZs, there is a strong case for a more transformative approach. Recognizing the shifts in the global competitive landscape may require rethinking the SEZ model to better align with modern economic realities.”

According to PAMA, if well designed and effectively implemented, an improved SEZ framework would increase domestic value retention, correct competitive distortions, protect and strengthen non-zone manufacturers, deepen regional supply chains, reinforce fiscal discipline, enhance customs integrity, build technological capability, and align competitiveness with equity. Most importantly, it would reposition SEZs from temporary policy exceptions to enduring instruments of industrial strategy.