The international labor organization estimates that worldwide there are over 2,700 epzs employing more than 63 million individuals appendix a. Introduction 47 historical development of free zones in. Effective 2014, gold producers are required to sell to the reserve bank of zimbabwe. Special economic zones political priority, economic gamble. Sezs however are not an entirely new concept as government once established export promotion zones epzs in the 1990s with more or less the same objectives. Jauch, h and d keet 1996, export processing zones in southern africa.
Freetrade zones are more popular than everwith politicians, if not economists. There is a big variation of special economic zones sezs. Benefitcost appraisals of export processing zones 53 epzs combine the international mobility of capital with domestic workers and exporttraded goods. With its network of 108 offices across the united states and in more than 75 countries, the u. Over the past decade, the popularity of export processing zones epzs has.
Export licences are required for many mineral products, with the export of certain agricultural products requiring export permits. The major reason behind the failure of epzs in zimbabwe was that any premises or place could be declared as such, even single rooms. Trade agreement namzim data on export, import, tariff, ntm. Zimbabwe operates an export credit reinsurance scheme which was established by the export credit reinsurance act, no. Special economic zones statement from zim gov website. Export processing zones and the quest for sustainable. Benefitcost appraisals of export processing zones 53 epzs combine the international mobility of capital with domestic workers and export traded goods. Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly. The government of the republic of namibia adopted a policy for the establishment of an export processing zone epz regime to serve as a tax haven for exportoriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation.
The notion of the epz may have originated from free trade zones established in major ports such as hong kong, gibraltar, and singapore during the nineteenth century. Nationwide laws may be suspended inside a special economic zone. Zimbabwean companies also participate in trade fairs organized by other countries for example zambia, tanzania and libya. Export processing zones in subsaharan africa kenya and. Firms located in the zone transfer capital and semiprocessed goods to countries where they can earn a rate of return greater than in the home country. Another incentive offered to foreign investors is the exclusion of the right to strike for an initial period of 5 years. Over 70% of epz output is exported to the usa under agoa. Establishment of zimbabwe export processing zone authority. This paper examines the literature on export processing and free trade zones. The epz programme also included several export incentives to promote export oriented production and development. This first chapter introduces relevant background for the topic and discusses the resource question and methodology in more detail. The traditional epz thus combines fiscal incentives attractive to exporters of manu factured goods e. Harnessing namibias manufacturing and exporting potential. Chapter 4 chinas investment in special economic zones in africa 69.
Nigeria export processing zones authority established under this act, designate such area as he thinks fit to be an export processing zone in this act referred to as a zone. In addition to providing the benefits of a ftz, these zones offer other incentives such as exemptions from certain taxes and business regulations. The government created export processing zones with generous incentives to attract and facilitate exportoriented investment. Export processing zones, free trade zones and other forms of special economic zones are demarcated geographical areas within a countrys national boundaries where the regulation of. The term special economic zones sezs covers a broad range of zones, such as freetrade zones, exportprocessing zones, industrial parks, economic and technologydevelopment zones, hightech zones, science and technology parks, free ports, enterprise zones, and others. The epz programme was managed and administered by the export processing zones authority. Essentially, any manufacturing business that was export oriented to some degree could obtain a licence, and many did. Essentially, any manufacturing business that was exportoriented to some degree could obtain a licence, and many did. Especially in the usa, the pioneer of sez has 257 areas of ftz and 545 areas of ftz subzone 4, 5.
The countrys principal exports and imports, and major export destinations and import sources are also presented in this section. Free zones in zimbabwe are referred to as export processing zones and there are several companies operating on this basis, one of them is royal ostrindo, which is involved in the tanning of exotic leather for example ostrich and elephant skins. Over the past few years, the idea of establishing export processing zones. The category sez covers a broad range of more specific zone types, including free trade zones ftz, export processing zones epz, free zones fz, industrial estates ie, free ports, urban enterprise zones and others. Unido viet nam united nations industrial development organization has compiled in 2015 a list of. Introduction 47 historical development of free zones in honduras 48 performance 49 key success factors 54 challenges for the future 61 conclusion 65 notes 67 references 68. Chapter 3 success and stasis in honduras free zones 47. Trade agreement namzim data on export, import, tariff. The establishment of the export processing zones epzs in 1995 aimed at promoting foreign direct investments fdi which would then translate into an increase in manufactured exports. The rationality of the special economic zones act on labour rights. Global experiences with special economic zones with a focus. The introduction of sezs in zimbabwe is not a novel concept as government once came up with export processing zones epzs from 19962006 that were mainly export oriented.
The term sez here covers a broad range of zones, such as free trade zones, exportprocessing zones, industrial parks, economic and technology development zones, hightech zones, science and innovation parks, free ports, enterprise zones, and others. Free zones are intended to foster economic activity and employment that could occur elsewhere. Global experiences with special economic zones with a. Currently there are more than 3,500 epzs in countries. In 1959, the very first zone of any consequence was established as irish shannon export free zone. Progress, emerging challenges, and future directions.
Until 2008, companies exported all base minerals through the stateowned minerals marketing corporation of zimbabwe mmcz. An act to provide for the establishment of the zimbabwe export processing zone authority and to provide for the functions thereof. Export processing zones export processing zones and the quest. An export processing zone is one of many export promotion tools, including bonded warehouses and temporary admission schemes. Another strategy which was adopted in 1994 to boost zimbabwes export potential was the establishment of export processing zones epzs. Firms located in the zone transfer capital and semiprocessed goods to countries where they.
There are about 40 export processing zones with close to 40,000 workers employed and contribution of 10. Export processing zones are used extensively throughout the world. Export markets har nessing namibias manufacturing and expor t potential background in 1995, the government of the republic of namibia adopted the export processing zones epz act act no. This is held annually in bulawayo as a showcase for zimbabwes products. Designing economic zones for effective investment promotion. Enhancing the contribution of export processing zones. Export processing zones in development and international. Parliament has approved a bill authorizing the setting up of export processing zones. A customs controlled area where goods are offloaded for transshipment, storage and may include bulk breaking, repacking, sorting, mixing, trading or other forms of handling excluding manufacturing and processing. The purpose of this article is to inform the readership on sezs and what role fdi can play in zimbabwes development trajectory as well as to flag out lessons from other countries. Export processing zones, free trade zones and other forms of special economic zones are demarcated geographical areas within a countrys national boundaries where the regulation of firms activity.
This paper discusses why export processing zones epzs provide. Export processing zones in subsaharan africa kenya and lesotho. Successful zones in mauritius, tangiers, panama and the dominican republic, were visited and investors, developers and government officials in the zones were interviewed in order to determine what were the factors that resulted in their success. Another strategy which was adopted in 1994 to boost zimbabwe s export potential was the establishment of export processing zones epzs. Zimbabwe, the territory to which their respective customs laws apply, including any area beyond the territorial seas of either republic within which, in accordance with international law and their domestic laws and subsoil and their natural resources, and includes export processing zones located in either republic. International labour organization 1998, labour and social issues relating to export processing zones, geneva. Establishes the zimbabwe export processing zone authority, the zimbabwe export processing zone board, and provides for the establishment of export processing zones and regulations thereto. One of the most well known sez is shenzhen special economic zone which established in 1980 2, 3. Free trade zones are more popular than everwith politicians, if not economists.
How to make special economic zones work the zimbabwe. Sep 15, 2017 to date, government has designated a number of sites as special economic zones. This paper analyses the concept of sezs in zimbabwe as contained in. Jan 16, 2015 sezs however are not an entirely new concept as government once established export promotion zones epzs in the 1990s with more or less the same objectives. This is held annually in bulawayo as a showcase for zimbabwe s products. However, the formation of the zimbabwe investment authority through the zia act repealed the epza act, which was the legal instrument governing the operations of epza. The move meant that, administratively, the programme could not continue to run.
The impacts of special economic zones evans school of. To date, government has designated a number of sites as special economic zones. This thesis attempts to understand the relevance of export processing zones epzs and special economic zones sezs in creating a more diverse economy and generating employment. Export processing zones epzs are areas within developing countries that offer incentives and a barrierfree environment to promote economic growth by attracting foreign investment for exportoriented production. Export processing zones epzs in their traditional form fencedin industrial parks where exportoriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. This also included establishing the existence of sezs in zimbabwe. Export processing zones export processing zones and. Africa, industrial policy and export processing zones. In the case of zimbabwe, statistical figures from zimbabwes central statistical office cso indicate that for the fiveyear period covering 2000 to. Until now, the special economic zone has been located in more than 5 countries around the world. The initial success of this experiment led to organizations like unido encouraging it as a model to be reproduced by developing countries. Some operate as fencedin zones, others are single factories that were awarded epz status export processing units epus and others are part of industrial parks or special economic zones jauch and keet 1996. Exporters receive compensation in local currency at the official exchange rate, effectively reducing the value of the export. An assessment of the impact of export processing zones.
Export processing zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. Enhancing the contribution of export processing zones to the sustainable development goals ii key messages this exploratory report suggests that changes taking place in the global market mean that export processing zones epzs, and special economic zones sezs more generally, can be restructured. Type of free trade zone ftz, set up generally in developing countries by their governments to promote industrial and commercial exports. An exportprocessing zone epz is a specific type of ftz usually set up in developing countries by their governments to promote industrial and commercial exports. An assessment of the impact of export processing zones and an. Todays export processing zones have evolved from their original definition as an industrial estate, usually a fencedin area of 10300 hectares, that specializes in manufacturing for export. China alone has 7 different types of zones ranging from industrial parks to entire cities and high technology zones ilo 1998. Social political and economic implications, ilrig, cape town. Epzs are particularly numerous in asia and along the usmexico border. The global trade and investment context from which.
Legislation online parliament of zimbabwe pdf of act as amended to act 142002 doc. The introduction of sezs in zimbabwe is not a novel concept as government once came up with export processing zones epzs from 19962006 that were mainly exportoriented. Geneva ilo news as global competition for jobs and foreign investment intensifies, export processing zones epzs are proliferating worldwide, growing from just a handful a few decades ago to over 850 today, according to a new report 1 published by the international labour office. This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them. Export processing zones epzs are areas within developing countries that offer incentives and a barrier free environment to promote economic growth by attracting foreign investment for exportoriented production. Epzs export processing zones ers export retention scheme.
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