Export processing and special economic zones in tanzania. Export processing zones epzs can be summarized as a unit bearing clusters of specially designed zones of aggressive economic activity for the promotion of export. The export processing zones act, 2002 arrangement of sections section title part i preliminary provisions 1. Sunway city was established by the industrial development corporation of zimbabwe idcz in partnership with sunway city malaysia in 1996, but the deal failed to take off following the financial turmoil in most asian countries then. The epz programme was managed and administered by the export processing zones authority. It is recognised that the manufacturing sector historically has been the most important. Namibias export processing zone 4 5 namibias founding president flanked by ramatex group ceo witnessing a namibian worker at ramatex demonstrating his skills at garment cutting. Objects and purposes of establishment of export processing zones. Several countries around the world have established export processing zones epzs in order to stimulate economic growth by attracting foreign direct investment fdi. Export processing zones and the quest for sustainable. 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. Some of the first free trade zones allowed imports and exports free from custom formalities so that goods could be reexported quickly. Export processing zones epzs in their traditional form fencedin industrial parks where exportoriented investors enjoy free port status emerged in the period.
To date, government has designated a number of sites as special economic zones. In 1990, zimbabwe liberalised its trade and is believed to have adopted the elg strategy. Export processing zones authority phone and map of address. This is held annually in bulawayo as a showcase for zimbabwe s products. Unpacking export processing zones the herald zimbabwe. Epzs take a variety of names and forms in different countries including free trade zones, special economic zones sezs, industrial development zones idzs, bonded warehouses, free. Export processing zones epz are spatially delimited areas in which manufacturers produce goods that are largely aimed for export markets. This paper examines how export processing zone firms in zimbabwe have responded to the economic crisis in zimbabwe. Legislation online parliament of zimbabwe pdf of act as amended to act 142002 doc. Representative in zimbabwe and the many afdb managers and staff at hq and. Many developing countries have established epzs in hopes of reaping economic gains through employment, foreign exchange. Download fulltext pdf download fulltext pdf export processing zones and environmental policy article pdf available in economics bulletin 620. Export diversification and role of export processing zones epz in bangladesh prior to liberation of bangladesh all the major industries of our country belonged to west pakistani entrepreneurs. Trade liberalisation in zimbabwe, resulted in an increase in export growth from 2.
The global trade and investment context from which. 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. Aug 20, 2015 this week we will focus on harares special economic zone, the sunway city integrated park. This is held annually in bulawayo as a showcase for zimbabwes products. Special economic zones for agricultural production and.
Establishes the zimbabwe export processing zone authority, the zimbabwe. Special economic zones and regional integration in africa. Sep 15, 2017 to date, government has designated a number of sites as special economic zones. The role of institutional factors farayi gwenhamo 12. Export processing zones authority, benjamin william mkapa sez, mabibo external. Freetrade zones are referred to as foreigntrade zones in the united states foreign trade zones act of 1934, where ftzs provide customsrelated advantages as well as exemptions from state and local inventory taxes. The rationality of the special economic zones act on labour rights. Another strategy which was adopted in 1994 to boost zimbabwes export potential was the establishment of export processing zones epzs.
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. An act to amend the export processing zones act, to make provisions for the establishment of the export processing zones authority, composition of the export processing zones council and related matters. Karachi export processing zone kepz, landhi industrial area extension, mehran highway, karachi75150 pakistan 9221 992080394144. Export processing zones often relating closely to general concerns about globalization and labor is the practice of granting certain kinds of tax and other regulatory exemptions to international investors through export processing zones epzs. In other countries, they have been called dutyfree export processing zones, export free zones, export processing zones.
This paper studies export processing zones epzs which have become. Export processing zones epzs are economic enclaves within which manufacturing for export occurs under virtual free trade conditions. Despite a poor track record of past export processing zones in africa, special. Establishment or declaration of export processing zones. Export processing zones act 9 of 1995 namibia legal database. Africa, industrial policy and export processing zones. Epzs in zimbabwe were established countrywide and not con. Parliament of zimbabwe pdf of act as amended to act 142002 pdf of act as. An investigation of zimbabwes export processing zones taylor. The nigeria export processing zones authority hereinafter referred to as the authority shall in presenting to the president, commander in chief of the armed forces its recommendations for the designation by the president of such area as he thinks fit as a.
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. To provide for the establishment, development and management of export processing zones in namibia, and to provide for matters incidental thereto. Harnessing namibias manufacturing and exporting potential. Export processing zones epzs in their traditional form fenced in industrial parks where export oriented investors enjoy free port status emerged in the period 195075 and first became widely adopted between 197585. Pdf export processing zones and environmental policy. Promotion of special economic zones, free trade zones, industrial. The 1970s then saw the epzs boom, mostly in developing countries of latin america, the caribbean, asia and to a lesser extent africa ilo 1998. Foreign employees holding temporary employment permits issued by the department of immigration to work in the licensed special economic zones, pay income tax at 15% of their taxable income. 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. This first chapter introduces relevant background for the topic and discusses the resource question and methodology in more detail. Currently there are more than 3,500 epzs in countries. Jul 10, 2014 the export processing zones act 2002 as amended by the export processing zones amendments act, 2006 and the economic zones laws miscellaneous amendments act, 2011 the epz act introduced. 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. 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.
The pros and cons posted on january 16, 2015 by the independent in main news the government has announced plans to introduce special economic zones sezs to attract direct investment, alleviate largescale unemployment, develop and diversify the economy. Zimbabwean companies also participate in trade fairs organized by other countries for example zambia, tanzania and libya. 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. An act to provide for the establishment of the zimbabwe export processing zone authority and to provide for the functions thereof. In 2011, nigeria launched its staple crops processing zones scpz initiative to establish sites across the country where the necessary physical infrastructure for processing the major crops consumed in the country would be built or upgraded, the production of such crops. An assessment of the impact of export processing zones and an.
Authority means the zimbabwe export processing zones authority established by section three amended by the general laws amendment no. The move meant that, administratively, the programme could not continue to run. Special economic zones statement from zim gov website. The following are the incentives offered to qualifying. Another strategy which was adopted in 1994 to boost zimbabwe s export potential was the establishment of export processing zones epzs. Special economic zones taxpayers licensed to operate in export processing zones enjoy tax holiday for the first 5 years and are taxed at 15% thereafter.
Export processing zones are not a new phenomenon and, according to the ilo, the first zone was set up in 1929 in spain. A new industrial park development is underway at the border settlement of katwitwi in the kavango region on the angolanamibia border. In 1995, the export processing zones act chapter 14. Zimbabwe presents an interesting case to test the role of property rights in the determination of fdi. Just after liberation all the medium and big size industries were. Section 5 addresses the various challenges and opportunities that arise when special economic zone programmes are established in countries embarking on regional integration processes, before section 6 concludes. The main concept of export processing zones was conceived in the early 1970s to promote the growth of the sickening export business of india. 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. Lessons from asia 1 paper prepared for africa task force meeting, addis ababa, ethiopia 1011 july, 2008 by howard stein professor center for afroamerican and african studies caas university of michigan, 505 s. 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. Enacted by the parliament ofthe united republic oftallzlj1ia. How to make special economic zones work the zimbabwe. Export processing zones in subsaharan africa kenya and lesotho.
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