Special Economic Zones in Africa

Page 233

Zone Practices: Operations, Management, and Learning

209

Figure 7.1 Time and Cost of Registering a Property (Doing Business 2010 rank for each country in parentheses) 140

25.0

120 20.0

percent

100 15.0

80 60

10.0

40 5.0

20 0

0.0 Ghana (33)

Kenya (125)

Lesotho (142)

# days- right axis

Nigeria (178)

Senegal (166)

Tanzania (145)

OECD

cost (% property value)- left axis

Source: World Bank (2009).

Again, it may be worth considering these issues in the context of the substantial use of single factory zones in African countries. The data shown in Figure 7.1 suggest that, for Ghana and Kenya at least, land access is not so problematic; thus, on this factor, single factory zones may be a realistic consideration, although both countries struggle with significant infrastructure issues that would be a major barrier to dispersed investment. But given the land access constraints in Senegal, a single factory model is difficult to understand. In the successful East Asian programs, detailed and comprehensive national and regional master planning was used to integrate the zones physically into the local and national economies. Indeed, a primary factor in the East Asian success story was the use of large-scale zones that linked zone-specific activity with the wider trade gateways, sources of labor, and social infrastructure. In contrast, in many of the African and Latin American zones, development planning has been limited to standalone industrial parks. Location is a critical determinant of zone success; however, most countries attempt to use their zone programs as instruments of regional development policy. With almost no exceptions, this approach has failed.


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