Special Economic Zones (SEZs) continue to be a central plank of Africa’s industrial policy, long judged by the volume of jobs created, exports shipped and firms attracted. It has delivered employment and foreign exchange but has also entrenched low wages, limited skills development and weak labour protections.
The next phase of SEZ development, shaped by Sustainable Development Goal (SDG) 8, calls for a recalibration. Growth is no longer defined by job numbers alone, but by the quality of work, productivity gains and the ability to deliver inclusive, long-term expansion.
UNCTAD argues that SEZs must evolve from low-cost labour platforms into value-adding industrial ecosystems. Zones that compete mainly on wages risk being locked into low-value activities and are increasingly exposed to automation, supply chain disruptions and mobile capital. Those that prioritise skills, innovation and labour retention are more likely to attract higher-quality investment and generate durable growth.
Under SDG 8, job quality becomes the primary metric. Evidence from Africa shows that employment without wage progression, skills accumulation and social protection has limited impact on poverty reduction, according to the World Bank. Decent work, as defined by International Labour Organization standards, links productivity growth to labour rights, workplace safety and opportunities for advancement.
The implications extend beyond employment. Productive, well-paid jobs are a prerequisite for sustained poverty reduction under SDG 1. SEZs characterised by low wages and high turnover often fail to lift household incomes over time. By contrast, firms that invest in training and offer stable contracts tend to pay more, retain workers longer and generate spillovers into local economies, according to World Bank and UNCTAD analysis.
The link to food security is especially clear in agro-industrial zones. Africa’s food insecurity is driven less by output constraints than by weak value chains, post-harvest losses and limited processing capacity. Agro-based SEZs that create skilled jobs in storage, processing, logistics and quality control can raise productivity across food systems, stabilise supply and reduce waste, supporting SDG 2 alongside growth objectives.
Gender equality is another pressure point. Women make up a large share of SEZ workforces but remain underrepresented in skilled and managerial roles, limiting productivity and reinforcing wage gaps. Research from the World Bank and UNCTAD shows that gender-inclusive firms are more innovative and productive. Policies that promote equal pay, transparent promotion and safe workplaces therefore serve both efficiency and equity goals under SDG 5.
Ghana offers a partial example. The Free Zones Act, 1995 provides for inclusive governance, and women are represented on the board of the Ghana Free Zones Authority. Translating that inclusion into firm-level management and career progression within zones remains a key challenge.
Policy design will determine whether SEZs can deliver on SDG 8. Global evidence points to a shift from blanket tax incentives to performance-based schemes tied to training, wage growth and worker retention. Skills upgrading needs to be treated as a core SEZ function, supported by partnerships with technical and vocational institutions. Strong labour institutions and social dialogue improve productivity and investor confidence, while transparency and enforcement are critical to ensuring standards are met.
SDG 8 sits at the centre of the development agenda, linking poverty reduction, food security and gender equality. SEZs that remain anchored in low-wage models are unlikely to deliver on any of these goals. Those redesigned around skills, productivity and decent work could become engines of inclusive growth. The choice for Africa’s policymakers is increasingly clear. Competing on cheap labour offers diminishing returns. Competing on productive, skilled work offers a more sustainable path.
