CONCEPT DOCUMENT ON FORMATION OF A
PAN AFRICAN FREE TRADE ZONE ASSOCIATION
INTRODUCTION
The globalization of trade and foreign investment over the past decade, as expressed in
the World Trade Organization (WTO), have significantly exposed African economies to
competitive pressures of the global economy. New global trading rules under the WTO
present both steep challenges and fresh new opportunities to national economies on the
African continent. In other parts of the industrialized world, individual country realignment
to the new trading conditions have been complemented by regional trade blocs such as
the North American Free Trade Association (NAFTA), European Union (EU), ASEAN and
so forth to lower the cost of regional trade of member countries.
The creation of the African Union (AU) in 2003 represents a historic opportunity for the
African continent to work towards greater trade integration. Although the political,
economic and social institutions underpinning the workings of the AU are still unfolding, it
is clear that trade integration will become a key policy objective if the AU is to succeed in
increasing the volume, and reducing the cost, of trade and economic development.
In pursuing this objective, there are a variety of trade instruments that countries in recent
years have begun to develop – the most common of which are Economic Development
Zones (EDZ), Free Trade Zones (FTZ), Export Processing Zones (EPZ) and Special
Economics Zones (SEZ). Although all these instruments are differently structured and
operated, they share a similar objective in the promotion of trade integration.
1. FREE TRADE ZONES IN AFRICA
· Economic Development Zones, Free Trade Zones, Export Processing Zones or Special Economic
Zones are widely accepted as one means of increasing the ability of African countries to attract
new foreign direct investment into specific locations.
· Such zones are successful where governments have introduced effective policy and legislative
measures to free up economic development within the zones. In addition, zone operators have
successfully used these policy frameworks to promote the strategic and locational advantages of
investment into these zones by foreign investors.
· There are some 66 economic zones in Africa (source: ILO 2003) and, given evidence of an
increase in FDI flows after the post-September 11 hiatus, the opportunity exists to increase trade
with and investments into Africa. This coincides with the push towards bolstering the Nepad
initiative.
· Typically, economic zones range from large land areas with a wide range of economic activity to
very small, geographically localised, industry or activity specific zones. These economic or tradePage 2
or export processing zones may be aimed at economic development, or promoting free trade or
export-oriented manufacturing.
· The 66 economic zones which have been identified in Africa are located across some 32 African
countries.
· However, in Africa, most zones are in fact very small operations, covering a land area of less that
1000 hectares, with very specific economic focus usually centered on access to natural resources
and fenced off. They include bonded warehouses, free ports and customs zones
· The South African Department of Trade and Industry, through The Enterprise Organisation, has
long supported the notion of stronger links among the various economic free zones in an effort to
maximise collaboration in terms of policy development and marketing initiatives. Specifically, it
has been proposed that an organisation be established to draw together the various trade zones in a
common purpose.
This briefing document is intended to provide a basis for moving the process forward
2. CONCEPT
It is proposed to form an association of economic development or free trade zones, to be
known as the Pan African Free Trade Zone Association (PAFTZA).
3. OBJECTIVES
The proposed Association would:
1. bring about greater trade synergies and strategic coordination of the continent’s free trade and
economic development zones, and through this, maximise and cheapen the flow of goods and
services;
2. develop and adopt a continent-wide Charter of Free Trade Zones making provision for a set of
common protocols, rules and ethical practices among member countries;
3. act as a marketing tool for the collective benefits of free trade areas within the AU with trading
partners in other parts of the world;
4. provide a trade information and data service for its membership;
5. facilitate exchange of technologies, practices and experiences to member countries with the view
to maintaining the competitive advantages of trade in Africa; and to
6. promote policy innovations within member countries to effect greater integration of free trade
zones within their respective economic heartlands.Page 3
4. SERVICES TO BE PROVIDED BY PROPOSED ASSOCIATION
The proposed Association would be providing the following services to member countries:
1. DATABASE SUPPORT SERVICE:
· Given the rapidly changing dynamics of the trade and technology environment within which
trade zones operate, it is essential that members are constantly able to access strategic data to
create competitive conditions of trade. Data would be sourced and packaged from other
primary data providers, including specialised trade research institutes, public universities,
policy research institutes, World Bank, WTO and other data holders for easy access to
members. The data base service to membership would include, among others:
· data warehousing of regional or global trade policy changes and its potential impact on AU
free trade zones;
· technical and operational data with respect to latest zone management technologies and
practices;
· security of trade data to ensure members are regularly kept abreast with risks (environmental,
political, military, etc.) that could affect trade stability and flows;
· GIS (geographical information systems) data on the spatial character of the AU Free Trade
Zone network;
· Data on other Free Trade Zones in other countries of the global trading community.
2. POLICY ADVISORY SERVICE:
· To promote economic policy reforms which can lead to maximisation of trade and
development linked to free trade zones;
· Sharing best practice policies. This would drill down to policies impacting the
conceptualising, developing, managing and marketing of economic zones.
· Establish synergies in policy development, marketing programmes and operational
requirements among zones in different African countries.
· For those zones which have been successful in attracting foreign direct investment, it should be
possible to isolate those legal/legislative frameworks which have facilitated their successful
development;
· Developing a Free Trade Zone Charter for adoption by members and member countries
upholding international trade practices and standards.
3. NETWORKING
· To share experience, skills and technology resources among countries which have free trade
zones;
· Exchange of personnel throughout the free trade zone association network for purposes of
mutual learning and sharing of information;Page 4
· Networking with economic and trade policy makers, civil society and environmental groups,
trade unions and business leaders on the continent to supporting expanded use of free trade
zones. Constant networking with key stakeholders is essential to counter negative perceptions
on its utility and social impact.
4. PROMOTION AND MARKETING
· Market the concept of free trade zones and the benefits which flow from such initiatives to
countries which do not have such zones, policy-makers and the wider public to ensure support;
· To promote greater trade amongst AU member counties;
· Promote investment into zones where legislative and regulatory regimes facilitate inward
investment.
· To establish joint marketing platforms.
· Lobby for funding for research, policy formulation and investment promotion.
5. CURRENT FREE TRADE ZONE OPERATORS AND IPAs
The following identified Free Trade Zones in Africa would be potential participants in the
proposed Association:
Country FullName Position Organisation
ALGERIA Mr Baghdadli Director General Agence Nationale de Dév. de l'Invest.
ANGOLA
Mr Carlos Antonio
Fernandes
Director General Instituto do Investimento Estrangeiro
BENIN Mr Hugues Zonnahoue Director General
Centre de Promotion des
Investissements
BOTSWANA
Ms Mmasekgoa
Masire-Mwamba
Chief Executive Officer
Botswana Export Develop. and
Invest. Authority
BURKINA FASO
Mr. Issa Benjamin
Baguian
Director
Office National du Commerce
Extérieur
BURUNDI Mrs Josiane Matuturu D.G. APEE - Agency of Foreign Trade
CAMEROON Dr Michael Tomdio Director General National Office for Ind. Free Zones
CAPE VERDE Ms Georgina de Mello President
Center for Tourism Investment and
Export Promotion
CENTRAL AFRICAN
REPUBLIC
Mr Jacob Mbaitadjim Min. du Com. et Prom. (Sect. Privé)
CHAD Cabinet du Ministere Min. Industrie Commerce et Artisanat
COMORES Mr Daroueche Ministere, Infrastructures et Industries
CONGO Cabinet du Ministere Ministère du Commerce et des PME
DEMOCRATIC
REPUBLIC OF
CONGO
Mr Kanza Tshibala P.D.G Fonds de Promotion de l' Industrie
IVORY COAST Ms Christiane Duncan Advisor Ctre. Prom. des Inv. en Cote d' Ivoire
DJIBOUTI
Ms Moussa Ahmed
Oubah
Promotion Manager National Agency for Invest. Promotion
EGYPT
Dr. Mohamed ElGhamrawi
Chairman
General Authority for Investment &
Free Zones
ERITREA Dr Araia Tseggai Chief Executive Officer
Eritrea Free Zones Authority, Head
Office
ETHIOPIA Mr Mohammed Seyed Head Ethiopian Investment AuthorityPage 5
EQUATORIAL
GUINEA
Oficina del Ministerio
Ministerio de Industria, Comercio y
PYME
GABON Mr Rene Wilfrid Mvoula Directeur Adjoint Direction Generale de l' Economie
GAMBIA Mr Kebba S. Touray
Gambia Invest. Prom. & Free Zones
Ag.
GHANA Mr George Aboagye Executive Director Ghana Free Trade Zones Board
GUINEA
Mrs Hadja Mariama
Déo Balde
Cabinet du Ministere Min. du Commerce, Industrie et PME
GUINEA-BISSAU
S.E.M. Antonio Serifo
Embalo
Secretariado do Comércio, Indústria,
Turismo e Artesanato
KENYA Mr Albert Oduol Gumo Chief Executive Export Processing Zones Authority
LESOTHO Mr Ashraf Sentso Director Lesotho National Development Corp.
LIBERIA Mr Henry Kaine Managing Director Liberian Industrial Free Zone Auth.
LIBYA Dr Bashir A. Zenbil Director General Libyan Foreign Investment Board
MADAGASCAR Mr Mamy Ratovomalala President
Ministry of Industrialisation and
Handicraft
MALAWI Mr Ted. A. Kalebe
General Manager &
Chief Executive
Malawi Investment Promotion Agency
MALI Mr Mohamed Simpara Director General Centre National de Prom. des Invest.
MAURITANIA Mr Oumar Sada Kelly Director
Direction de la Promotion de
L'investisement Privé
MAURITIUS Mr Alain Chan Sun Director Export Processing Zones Dev. Auth.
MOROCCO Ms Malak Sbiti
Chef du Service des
Industries
Ministry of Economy and Finance
MOZAMBIQUE Ms Sara Taibo Senior Official Investment Promotion Centre
NAMIBIA Mr David Nuyoma
Under Secretary /
Executive Director
Ministry of Trade & Industry
NIGER Mr Daouda Moussa Director
Centre de Promotion des
Investissements (C.P.I.)
NIGERIA
Mr Adesina A.
Agboluaje
Managing Director
Nigeria Export Processing Zones
Authority
UGANDA Dr Maggie Kigozi Executive Director Uganda Investment Authority
REUNION Director General
Fédération des C.C.I. de l'Océan
indien
RWANDA Cabinet du Ministere
Min. du Commerce Artisanat et
Tourisme
SAO TOME AND
PRINCIPE
Oficina del Ministerio Ministerio de Economia
SENEGAL Mrs Aminata Niane Director
Agence Nationale Pour la Promotion
des Investissements et des Grands
Travaux
SENEGAL
Mr Amadou Maleine
Niang
Chief Executive Officer Zone Franche Industrielle de Dakar
SEYCHELLES Mr Conrad Benoiton Managing Director Seychelles Int. Business Authority
SIERRA LEONE
Mr Joseph W.A.
Jackson
Director of Industries
Ministry of Trade Industry and State
Enterprises
SOMALIA Office of the Minister
Ministry of Commerce
and Industry
Foreign Trade Department
SOUTH AFRICA Dr. Mahlape Mohale Chief Executive The Enterprise Organisation, DTI
SUDAN
Mr Mohammed Abbas
M.A.
General Manager Sudanese Free Zone & Markets Co.
SWAZILAND Mr Bhekie Dlamini Chief Executive Officer
Swaziland Investment Promotion
Authority
TANZANIA Mr Shannel F. Mvungi Director National Development Corporation
TOGO
Mr Kpatcha
Gnassingbe
Director General Togo Free Zone Authority
TUNISIA
Mr Abdessalem
Mansour
General Manager
Foreign Investment Promotion
Agency Page 6
ZAMBIA Dr Mbikusita Lewanika Director General Zambia Investment Center
ZIMBABWE Mr Walter K. Chidakwa General Manager
Zimbabwe Export Processing Zones
Auth.
6. RECOMMENDATION
1. Formal Support by member countries for the Project to establish a Free Trade Zone Association;
2. Establishment and funding of a small, fulltime secretariat operating under the auspices of Nepad.
The secretariat to be responsible for drawing up terms of reference for PAFTZA, its marketing to
African Union members, and submission for official adoption by decision-makers;
3. Specification by the Secretariat of a time-table for implementation and appointment of a Project
Manager.
