The African Continental Free Trade Area (AfCFTA) Secretariat is partnering with the Republic of Djibouti to host a regional conference focused on the pivotal role of Special Economic Zones (SEZs) in driving industrialization, trade facilitation, and economic cooperation within the AfCFTA framework. This conference, scheduled for April 21-22, 2025, at the Ayla Grand Hotel in Djibouti City, will be held under the patronage of President Ismail Omar Guelleh and will convene representatives from AfCFTA member states, the Intergovernmental Authority on Development (IGAD), SEZ authorities, financial institutions, and private sector stakeholders. The timing of the conference is strategic, coinciding with the ongoing implementation of the AfCFTA Protocol on Trade in Goods and provides a platform to explore the practical application of regulations concerning SEZs and their contribution to intra-African trade.
The conference program is designed to delve into the multifaceted aspects of SEZ development and their integration within the AfCFTA. Key themes include the practical implementation of AfCFTA regulations concerning SEZs, fostering innovation and skills development within these zones to enhance value chain resilience, developing infrastructure and trade corridors to promote regional integration, and attracting investment for SEZ financing. The conference will also showcase Djibouti’s strategic positioning as a Red Sea logistics hub and its own SEZ initiatives as a potential model for other African nations. Through high-level panel discussions, a site visit to Djibouti’s SEZ, and focused dialogues on investment, infrastructure, and regulatory frameworks, the conference aims to foster knowledge sharing and collaboration among participants.
The significance of SEZs within the AfCFTA framework is underscored by Article 9 of Annex II on Rules of Origin, which allows goods produced within SEZs to qualify as “originating goods” under specific criteria. This provision, coupled with Ministerial Regulation 1/2023 adopted by the AfCFTA Council of Ministers of Trade, facilitates preferential trade for goods from African SEZs while ensuring safeguards for domestic markets through provisions on trade remedies, competition policy, and infant industry protection. This regulatory framework sets the stage for SEZs to become engines of economic growth and regional integration within the AfCFTA.
Djibouti’s selection as the host country for this conference highlights its emerging role as a strategic logistics and trade hub in the Horn of Africa. Its location on the Red Sea provides access to major shipping routes connecting Africa, Asia, and Europe, making it an attractive location for SEZ development. The conference will offer participants an opportunity to learn from Djibouti’s experiences in establishing and operating SEZs, including its regulatory framework, infrastructure development, and investment attraction strategies. The insights gained from Djibouti’s experience can inform the development and implementation of SEZ strategies across the continent, contributing to the broader goal of fostering regional economic integration through the AfCFTA.
The conference is expected to contribute significantly to shaping regional approaches to SEZ governance and reinforcing Africa’s collective trade ambitions. By bringing together key stakeholders from across the continent, the conference aims to foster a shared understanding of the opportunities and challenges associated with SEZ development and their role in driving industrialization and trade within the AfCFTA. The discussions and insights emerging from the conference will inform policy recommendations and best practices for SEZ development and management, paving the way for more effective utilization of these zones as catalysts for economic growth and regional integration. This collaborative approach is crucial for maximizing the potential of SEZs to contribute to the overall success of the AfCFTA.
The collaborative effort between the AfCFTA Secretariat and the Republic of Djibouti in organizing this conference signifies the importance both entities place on utilizing SEZs as instruments for economic transformation and regional integration. The conference serves as a platform for knowledge exchange, best practice sharing, and collaborative strategizing to unlock the full potential of SEZs within the AfCFTA framework. By fostering a conducive environment for SEZ development, Africa can leverage these zones to enhance industrialization, diversify its economies, and strengthen its position in global trade, ultimately realizing the vision of a prosperous and integrated African continent.
