Special Economic Zones (SEZs) were introduced as practical policy tools, defined areas offering regulatory, fiscal and infrastructural advantages to attract investment, boost exports and create jobs.
Across Africa, they have been embedded in national industrial strategies for more than three decades, from Ghana’s Export Processing Zones to mixed-use hubs such as Nigeria’s Lekki development. While they have generated employment and foreign exchange, their contribution to the Sustainable Development Goals (SDGs) remains uneven and, in many cases, unrealized.
Research by the United Nations Conference on Trade and Development (UNCTAD) shows that with targeted reforms, including reoriented incentives, stronger governance, deeper local linkages and the adoption of sustainability standards, SEZs can shift from isolated enclaves to meaningful drivers of SDG progress.
This series will argue, drawing on UNCTAD’s work, that reforms of this kind can reposition SEZs as measurable engines for sustainable development rather than sites of narrow export activity.
As countries weigh economic expansion against environmental responsibility, SEZs have become central to the conversation on sustainable industrialization. With the right frameworks, SEZs can support industrial transformation, renewable-energy adoption and broad-based economic inclusion.
Their relevance cuts across several SDGs, notably SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 13 (Climate Action). According to UNCTAD, well-managed zones have the potential to contribute to progress on 11 of the 17 Goals.
Why revisit SEZs now?
Global investment flows are volatile. UNCTAD’s World Investment Report 2025 highlights a drop in productive investment and warns that attracting sustainable, job-creating projects is becoming more urgent. At the same time, global forums, particularly UNCTAD’s World Investment Forum (WIF) and the Global Alliance of Special Economic Zones (GASEZ), have introduced the SDG Model Zone concept, designed to identify and scale zone practices aligned with the 2030 Agenda.
These two developments, weakening traditional FDI and heightened focus on “SDG-proofing” investment promotion, create a strategic opening for Africa to rethink its approach to zones.
The promise and the pitfalls
UNCTAD’s IPA Observer 15-2024 notes that well-designed SEZs can deliver:
• Concentrated infrastructure and utilities that lower operating costs;
• Locations to pilot renewable energy, industrial symbiosis and circular-economy approaches;
• Platforms for skills development and technology transfer when linked to local suppliers and institutions.
Yet persistent shortcomings limit impact. Many zones show weak integration with domestic firms, incentives that reward registration rather than value addition, poor labour and environmental oversight and uneven outcomes for women, youth and vulnerable groups. These mixed results have prompted the World Bank, UNCTAD and regional development partners to call for modernization, stronger governance and clearer performance benchmarks.
What the SDG Model Zone adds
UNCTAD’s SDG Model Zone framework and the GASEZ Partners initiative offer a practical approach: attract SDG-relevant investment (such as renewable-energy projects and green manufacturing), adopt robust ESG standards and strengthen spillovers to surrounding communities.
Discussions at the 2023 World Investment Forum underscored that tying zone performance to SDG outcomes, rather than only to exports or job numbers, shifts policy attention from short-term incentives to long-term development impact.
A pragmatic policy architecture for “SDG-ready” SEZs
UNCTAD and the World Bank outline four complementary pillars for a realistic transition:
1. Outcome-based incentives: Replace blanket tax holidays with incentives tied to measurable SDG outcomes, including verified local procurement, training placements, reductions in energy intensity and increased female representation in management. This discourages firms that import inputs and export without meaningful spillovers.
2. Transparent governance and performance metrics: Publish regular scorecards covering jobs, wages, sourcing patterns, emissions and gender metrics. Align a zone authority’s mandate and resources to these indicators. UNCTAD and WIF outcomes emphasise the need for continuous monitoring and capacity strengthening.
3. Deliberate linkages with local firms and training institutions: Use procurement clauses, SME support programmes and public-private training centres to turn enclave employment into broader industrial upgrading. Comparative research from the World Bank shows that linkages are the most important factor for inclusive impact.
4. Green and social safeguards as entry requirements: Mandate environmental-management systems, resource-efficiency plans and compliance with labour standards as part of zone licensing. Recognise high performers through SDG Model Zone partner status or preferential access to expansion opportunities. UNCTAD’s surveys show these measures are increasingly achievable.
Using the SDGs as a framework for assessing SEZs also creates clearer pathways for tracking development impact over time.
What this series will do
Over the next ten columns, each piece will focus on a single SDG i.e. No Poverty; Zero Hunger; Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Reduced Inequalities; Sustainable Cities; Responsible Consumption and Production; Climate Action; and Partnerships for the Goals.
Each will outline targeted SEZ policy levers and provide short, actionable checklists for policymakers and development partners. The analysis will draw from practitioner experience and current evidence from UNCTAD, the World Bank, regional development banks and leading SEZs across Africa and beyond.
If SEZ policies are aligned with the SDGs, Africa’s zones can evolve from stand-alone enclaves into durable engines of sustainable, inclusive growth.
