Kenya eyes cooperation with China to develop SEZs

Kenya is keen to forge stronger cooperation with China in developing special economic zones, or SEZs, to accelerate opportunities in manufacturing and job creation.

Drawing lessons from China's industrial transformation, Nairobi has identified industrial zones in each of its 47 counties that can utilize locally available raw materials for producing finished goods.

With China's support, Juma Mukhwana, the principal secretary for the state department of industry in the Ministry of Investments, Trade and Industry, said Kenya hopes to become Africa's manufacturing hub.

"By embedding SEZ-based manufacturing within agricultural and resource-rich counties, we can stimulate agro-processing, textiles and other labor-intensive industries while linking farmers and small enterprises to higher-value markets," he said during a recent event in Nairobi.

John Mwendwa, chief executive officer of the Kenya Investment Authority, said the agency has been closely watching policy signals in China, particularly on industrialization, employment creation and the evolution of SEZ strategies.

Kenya is increasingly looking to SEZs as anchors for industrial growth, taking inspiration from China's development model that transformed coastal cities such as Shenzhen from small trading hubs into global manufacturing and technology centers.

A recent analysis by CRA Global Development, a South Africa-based consultancy firm, indicates that China's economic rise has been closely linked to its strategic deployment of SEZs, which combined targeted incentives, streamlined regulations and robust infrastructure to attract foreign investment and stimulate export-oriented industrialization.

It noted that SEZs in China were designed as "catalysts for accelerated industrialization", helping the country attract large volumes of foreign direct investment, boost exports and support technological advancement.

Revitalize manufacturing

Mukhwana noted that Kenya is looking at China as a partner that can help the East African nation revitalize its manufacturing sector by building more industrial parks.

"The current demand for space in existing industrial zones exceeds the country's capability to establish more industrial parks and Kenya is keen to learn key lessons from China's success in developing industrial zones," he stated.

He noted that Kenya's geographic location as a gateway to East and Central Africa also remains a strong draw for Chinese manufacturers seeking regional market access.

In China, sustained government commitment, infrastructure investment and efficient administrative systems were among the major factors that enabled SEZs to flourish.

Mwendwa said similar elements will be essential for Kenya to attract global manufacturers, including those from China, especially as supply chains shift globally.

"From our engagements with investors, it is clear that they respond strongly to speed of execution, clarity of incentives and streamlined administrative processes," he said.

Experts have said that countries seeking to replicate China's SEZ success must adapt the model to local conditions, aligning zones with national priorities, comparative advantages and domestic supply chains to ensure inclusive growth.

vraballa@chinadailyafrica.com