Journal of Social and Political
ISSN 2615-3718 (Online)
ISSN 2621-5675 (Print)
Published: 26 June 2020
Special Economic Zones: An Evaluation of Lusaka South - Multi Facility Economic Zone
Stephen Mwansa, Junaid Shaikh, Phillip Mubanga
Government of the Republic of Zambia (Zambia), Binary University of Management and Entrepreneurship (Malaysia), Vocational and Entrepreneurship Training Authority (Zambia)
Download Full-Text Pdf
Keywords: Special Economic Zone, Multi Facility Economic Zone, Foreign Direct Investment, Incentives, Infrastructure, Industrialization
Special Economic Zones are geographical areas allocated and designated to attract foreign investment, enhance industrialization, and spur economic development of the identified jurisdiction. The trade laws applicable in the Economic Zone are different from those used by the rest of the country. Investors are offered tax and several other incentives to set up businesses. It is envisaged the Zones can be effective special purpose vehicles to deliver industrialization and structural transformation. However, the aims of the Zones are achievable only if the development programme was properly crafted and correctly implemented. Worldwide, for over 50 years many countries have established and experimented the concept of Economic Zones albeit with, mixed results. This preliminary article based on an active research attempts to present the interim results of the Lusaka South Multi Facility Economic Zone (LS-MFEZ) in Zambia. There have been variations in terms of progress and performance of the projects undertaken, some of which are at the formative stage. The objectives of the study among others is to establish the reasons behind the slow uptake of investment space in LS-MFEZ. The study focuses on businesses that have invested in the Lusaka South Multi Facility Economic Zone, and those that have expressed interest to invest. This study embraces a mixed-methods model comprising qualitative and quantitative research approaches. The interim findings indicate that investors face several challenges in starting businesses in the Zone, besides the inappropriate Zone infrastructure. Furthermore, some incentives the government had put in place are not the primary factors attracting Investors.
Aggarwal, A. (2010) “Economic Impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India.” Available from SEZ_MPRA_paper_20902.pdf. Accessed on 14 December 2018.
Calabrese, L. Papadavid, P. and Tyson, J. (2017) “Supporting Economic Transformation (SET). ‘Rwanda: Financing for Manufacturing.” Available from https://set.odi.org/wp-content/uploads/2017/06/Financing-for-Manufacturing-Rwanda-June-2017.pdf. Accessed 07 February 2020.
Creswell, J. W. (2013) “Research design: Qualitative, quantitative, and mixed methods approaches.” Thousand Oaks, CA. Sage Publications.
Creswell, J. W. (2014) “Research design: qualitative, quantitative, and mixed methods approaches. 4th ed.” Thousand Oaks, California: SAGE Publications.
DTI (2017) “Industrial Development – Special Economic Zones.” Department of Trade and Industry, Republic of South Africa. Available from http://www.thedti.gov.za/industrial_development/sez.jsp. Accessed 18 August 2018.
EIC (2015). “Guide to Doing Business and Investing in Ethiopia.” Ethiopia Investment Commission.
EMCC (2018) “Special Economic Zones – Poland.” European Monitoring Centre for Change. Available from https://www.eurofound.europa.eu/observatories/emcc/erm/support-instrument/special-economic-zones-sez. Accessed on 21 December 2019.
Farole, T. & Moberg, L. (2017) “Special Economic Zones in Africa – Political Economy Challenges and Solutions.” Available from https://www.oxfordscholarship.com/ view/10.1093/acprof:oso/9780198796954.001.0001/acprof-9780198796954-chapter-12. Accessed on 14 August 2019.
Glasser, B. & Strauss, A. (1967) “The discovery of grounded theory strategies for qualitative research.” Available from https://www.scirp.org>referencePapers. Accessed on 14 April 2020.
Government of Rwanda (2010) “Special Economic Zone Policy.” pp 18-20. Available from http://www.minicom.gov.rw/fileadmin/minicom_publications/policies/SEZ_Policy_Cleaned_.pdf. Accessed 10 April 2018.
Investopedia (2017) “What is a Special Economic Zone?” Available from https://www.investopedia.com/terms/s/sez.asp.
Johnson, T. P. (2014) “Snowballing: An introduction.” Illinois, University of Illinois. Available from http://researchgate.net/publication/3164142_snowball sampling_introduction. Accessed on 22 April 2020.
Kuznetsov, A. & Kuznetsova, O. (2019) “The success and failure of Russian SEZs: some policy lessons.” Transnational Corporations, vol. 26 (2), pp. 117.
LSMFEZ (2018) “The Lusaka South Multi Facility Economic Zone.” Available from http: lsmfez.co.zm. Accessed on 15 December 2019.
LSMFEZ (2019) “The Lusaka South Multi Facility Economic Zone.” Available from http: lsmfez.co.zm. Accessed on 15 January 2020.
Maslikhina, V. Y. (2016) “Special Economic Zones in Russia: Results Evaluation and Development Prospects.” International Journal of Economics and Financial Issues. Available at https://pdfs.semanticscholar.org/93ff/a90f0329db0bb020fa22848f32b9514c7774.pdf. Accessed on 31 January 2020.
MCTI (2009) “Lusaka South Multi-Facility Economic Zone Master Plan.” Ministry of Commerce, Tarde and Industry, Lusaka. Retrieved from http:// www.mcti.gov.zm.
MCTI (2017) “Lusaka South Multi-Facility Economic Zone Master Plan.” Ministry of Commerce, Tarde and Industry, Lusaka. Retrieved from http:// www.mcti.gov.zm
OECD (2017) “Tracking Special Economic Zones in the Western Balkans: Objectives, Features and Key Challenges.” Organisation for Economic Cooperation and Development. Conference Centre