Special Economic Zones (SEZs) are designated areas with business-friendly policies and incentives aimed at attracting investment, boosting industrialization, and promoting economic growth. SEZs offer benefits such as tax incentives, streamlined regulatory processes, and improved infrastructure to encourage investment in key sectors like agro-processing, manufacturing, textiles, and technology. By fostering industrial clusters, SEZs enhance productivity, create employment, and stimulate both domestic and export markets.
The United Nations Economic Commission for Africa (UNECA) recognizes SEZs as powerful tools for structural transformation and inclusive industrialization. UNECA supports African countries in leveraging SEZs to promote industrial diversification, value addition, and regional integration under frameworks like the African Continental Free Trade Area (AfCFTA). By addressing infrastructure deficits, regulatory bottlenecks, and skills development, SEZs contribute to sustainable economic growth and inclusive development across the continent.
The Government of Malawi has prioritized SEZs as a key driver of economic transformation under Malawi 2063, the first 10-year implementation plan (MIP1), the draft National Industrial Policy (2024-2029), and other strategic frameworks. The Special Economic Zones Act which was enacted in February, 2024 and brought into force in March 2024 provides a comprehensive legal framework for SEZ development. However, the implementation of this Act requires supporting regulations.
To this end, Malawi’s Ministry of Trade and Industry (MoTI), with support from the United Nations Economic Commission for Africa Sub-regional Office for Southern Africa (SRO-SA), retained a consultant to develop regulations to support the operationalization of the SEZ guidelines. The regulations will provide operational guidelines for SEZs to ensure effective governance, transparency, and provide investor confidence. The consultant has submitted the draft regulations for review and validation. In this regard, the MoTI and SRO-SA will organize a meeting to review and validate the draft regulations.
