A recent CNBC Africa discussion, held in partnership with DP World, explored the role of Special Economic Zones (SEZs) as catalysts for regional growth and global connectivity across Africa. The panel included Mohammed Akoojee, Chief Executive Officer and Managing Director of DP World Sub-Saharan Africa; Busi Mabuza, Chair of the B20 Trade and Investment Task Force; Trudi Makhaya, Partner at Boston Consulting Group (BCG); and Mohammed Ali, Director for Trade in Goods and Competition at the African Continental Free Trade Area (AfCFTA) Secretariat.
Opening the discussion, Akoojee highlighted the need to unlock Africa’s trade potential, noting that the continent accounts for only two percent of global trade and that intra-African trade remains below 15 percent. He explained that DP World’s experience in the United Arab Emirates demonstrates how SEZs can drive national growth, with such zones contributing up to 40 percent of Dubai’s GDP and employing more than 160,000 people.
Akoojee said DP World aims to replicate this success across Africa, positioning SEZs as enablers of industrialisation, job creation, and economic diversification. Over the past four years, the company has invested approximately US$3 billion in ports and logistics infrastructure, with an additional US$3 billion earmarked for future expansion, including the development of SEZs.
Policy Alignment and Regional Integration
Busi Mabuza emphasised that SEZs lie at the intersection of trade, industrial policy, infrastructure, and investment. As Chair of the B20 Trade and Investment Task Force, she highlighted the importance of aligning SEZ development with broader G20 and AfCFTA objectives. Mabuza outlined three key recommendations emerging from the task force: stabilising global trade through reform of the World Trade Organization (WTO), establishing a new trade and investment deal for Africa, and ensuring climate action policies remain inclusive for developing economies.
She added that Africa, home to 18 percent of the world’s population, will account for half of the global youth population by 2050, making the continent a critical driver of future trade and investment.
Action-Oriented Recommendations
Trudi Makhaya explained that the B20 task forces have been designed to deliver measurable outcomes and key performance indicators. As a BCG partner and former economic adviser, she stressed the need for practical implementation of trade and investment recommendations, referencing the Compact with Africa 2.0 initiative launched in Washington, DC.
The task force has set targets to raise intra-African trade to 30 percent by 2030, enhance the competitiveness of African exporters, and expand value-added manufacturing. It has also urged greater financial support for the AfCFTA’s Adjustment Fund to help countries meet integration objectives.
AfCFTA’s Role in Enabling SEZs
Speaking from Accra, Mohammed Ali of the AfCFTA Secretariat noted that tangible progress is being achieved, with trade transactions under the AfCFTA growing from 14 in 2022 to over 8,500 shipments in 2024. He confirmed that ministers of trade have adopted SEZ regulations, allowing products from SEZs to qualify for AfCFTA preferences if they meet the required transformation threshold.
Ali described SEZs as essential to Africa’s industrialisation strategy, saying they enable the production and trade of value-added goods within the continent. He cited the adoption of SEZ regulations and the Afreximbank-managed Adjustment Fund as key policy tools supporting the integration of SEZs into Africa’s single market.
Infrastructure, Efficiency, and Enabling Environment
Akoojee noted that infrastructure alone is insufficient to drive trade competitiveness. He called for regulatory harmonisation, digital customs platforms, and regional coordination to reduce logistics costs, which in Africa can account for up to 50 percent of product value—five times the global average.
Citing the example of DP World’s operations in Dar es Salaam, he said vessel waiting times had been reduced from 30 days to three or four days, saving Tanzania approximately US$600 million in demurrage costs. Similar interventions across DP World’s African portfolio have generated an estimated US$16 billion in economic value in Nigeria and South Africa alone.
Supporting Small and Medium Enterprises
Mabuza said SEZs should also serve as platforms for small and medium-sized enterprises (SMEs), which are responsible for most job creation on the continent. She recommended positioning agencies such as Invest South Africa within SEZs to assist local businesses and reduce entry barriers, particularly for micro and small enterprises seeking access to trade opportunities.
Defining the SEZ Value Proposition
Makhaya noted that successful SEZs are built around clear value propositions that attract anchor firms and create complementary clusters. She said that beyond infrastructure, SEZs must provide R&D support, skills development, and targeted incentives that enhance production without eroding national revenue bases.
While countries such as Morocco and Kenya have achieved notable success, she said Southern Africa’s SEZs require stronger coordination, better logistics, and more proactive investment facilitation.
Measuring Success
Akoojee identified trade volumes, job creation, and logistics efficiency as key success indicators. He cited the Berbera Economic Zone in Somaliland, where SEZ-related trade now accounts for 27 percent of regional throughput, and Senegal, where volumes increased from 100,000 to 900,000 containers annually.
Regional Relevance and Future Outlook
Mabuza stressed that African countries must pursue regional rather than national competitiveness. She called for the reduction of tariffs and the restoration of the WTO dispute settlement mechanism, alongside a greater focus on practical SEZ implementation.
Makhaya added that success must be measured by structural transformation, lifting low income countries to middle-income status, doubling foreign direct investment to US$100 billion by 2030, and ensuring economic growth translates into job creation.
Akoojee concluded by reaffirming DP World’s commitment to building an African logistics powerhouse, employing more than 31,500 people across the continent. He described the company’s goal as creating a leading, Africa-based trade and logistics enterprise that is locally anchored and globally competitive.
Policy Alignment and Regional Integration
Busi Mabuza emphasised that SEZs lie at the intersection of trade, industrial policy, infrastructure, and investment. As Chair of the B20 Trade and Investment Task Force, she highlighted the importance of aligning SEZ development with broader G20 and AfCFTA objectives. Mabuza outlined three key recommendations emerging from the task force: stabilising global trade through reform of the World Trade Organization (WTO), establishing a new trade and investment deal for Africa, and ensuring climate action policies remain inclusive for developing economies.
She added that Africa, home to 18 percent of the world’s population, will account for half of the global youth population by 2050, making the continent a critical driver of future trade and investment.
Action-Oriented Recommendations
Trudi Makhaya explained that the B20 task forces have been designed to deliver measurable outcomes and key performance indicators. As a BCG partner and former economic adviser, she stressed the need for practical implementation of trade and investment recommendations, referencing the Compact with Africa 2.0 initiative launched in Washington, DC.
The task force has set targets to raise intra-African trade to 30 percent by 2030, enhance the competitiveness of African exporters, and expand value-added manufacturing. It has also urged greater financial support for the AfCFTA’s Adjustment Fund to help countries meet integration objectives.
AfCFTA’s Role in Enabling SEZs
Speaking from Accra, Mohammed Ali of the AfCFTA Secretariat noted that tangible progress is being achieved, with trade transactions under the AfCFTA growing from 14 in 2022 to over 8,500 shipments in 2024. He confirmed that ministers of trade have adopted SEZ regulations, allowing products from SEZs to qualify for AfCFTA preferences if they meet the required transformation threshold.
Ali described SEZs as essential to Africa’s industrialisation strategy, saying they enable the production and trade of value-added goods within the continent. He cited the adoption of SEZ regulations and the Afreximbank-managed Adjustment Fund as key policy tools supporting the integration of SEZs into Africa’s single market.
Infrastructure, Efficiency, and Enabling Environment
Akoojee noted that infrastructure alone is insufficient to drive trade competitiveness. He called for regulatory harmonisation, digital customs platforms, and regional coordination to reduce logistics costs, which in Africa can account for up to 50 percent of product value—five times the global average.
Citing the example of DP World’s operations in Dar es Salaam, he said vessel waiting times had been reduced from 30 days to three or four days, saving Tanzania approximately US$600 million in demurrage costs. Similar interventions across DP World’s African portfolio have generated an estimated US$16 billion in economic value in Nigeria and South Africa alone.
Supporting Small and Medium Enterprises
Mabuza said SEZs should also serve as platforms for small and medium-sized enterprises (SMEs), which are responsible for most job creation on the continent. She recommended positioning agencies such as Invest South Africa within SEZs to assist local businesses and reduce entry barriers, particularly for micro and small enterprises seeking access to trade opportunities.
Defining the SEZ Value Proposition
Makhaya noted that successful SEZs are built around clear value propositions that attract anchor firms and create complementary clusters. She said that beyond infrastructure, SEZs must provide R&D support, skills development, and targeted incentives that enhance production without eroding national revenue bases.
While countries such as Morocco and Kenya have achieved notable success, she said Southern Africa’s SEZs require stronger coordination, better logistics, and more proactive investment facilitation.
Measuring Success
Akoojee identified trade volumes, job creation, and logistics efficiency as key success indicators. He cited the Berbera Economic Zone in Somaliland, where SEZ-related trade now accounts for 27 percent of regional throughput, and Senegal, where volumes increased from 100,000 to 900,000 containers annually.
Regional Relevance and Future Outlook
Mabuza stressed that African countries must pursue regional rather than national competitiveness. She called for the reduction of tariffs and the restoration of the WTO dispute settlement mechanism, alongside a greater focus on practical SEZ implementation.
Makhaya added that success must be measured by structural transformation, lifting low income countries to middle-income status, doubling foreign direct investment to US$100 billion by 2030, and ensuring economic growth translates into job creation.
Akoojee concluded by reaffirming DP World’s commitment to building an African logistics powerhouse, employing more than 31,500 people across the continent. He described the company’s goal as creating a leading, Africa-based trade and logistics enterprise that is locally anchored and globally competitive.
Written by Phillippa Dean, Editor, Railways Africa Magazine.
