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Chinese Investment in African Free Trade Zones: Lessons from Nigeria’s Experience
The document examines Chinese investment in Nigeria's free trade zones (FTZs), focusing on the Lekki Free Trade Zone (LFTZ) and the Ogun Guangdong Free Trade Zone (OGFTZ). It highlights that while Nigeria has provided generous tax and ownership incentives since 1992, implementation has been slow due to infrastructural weaknesses and governance uncertainties. The LFTZ, a joint venture where a Chinese consortium holds a 60% stake, has faced challenges including internal consortium disputes, funding delays, and power supply issues. The author argues that Nigeria's high-risk profile gave Chinese investors excessive leverage, leading to an initially over-generous 50-year lease agreement that was later renegotiated to reduce the zone's size and mandate a 40% Nigerian workforce. The brief concludes that for FTZs to succeed and facilitate technology transfer, African governments must ensure high-level political commitment, maintain a confident negotiating stance, and improve the overall business climate.
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Document type: Policy brief
Africa as an actor in global governance reform for development
The document assesses Africa's economic vulnerabilities and its limited role in global governance. It argues that while the G20 has emerged as a key coordinator for global challenges like climate change, Africa's voice is weakened by fragmented economies and colonial-era infrastructure. The author contends that Africa must increase intra-African trade and strengthen regional economic communities to earn a more significant place in world decision-making.
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Document type: Statement
China in Mozambique: A Cautious Approach
The document examines the bilateral relationship between China and Mozambique, highlighting how Mozambique's reliance on traditional Western donors and the influence of the FRELIMO party have constrained China's influence compared to other African nations. It details Chinese investments in infrastructure, such as the Mpanda Nkua dam, and identifies significant controversies surrounding illegal logging and poaching in the fisheries sector. The report also explores future cooperation in agriculture, biofuels, and the establishment of special economic zones, while noting Mozambique's strategic value as a maritime gateway for landlocked SADC countries.
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Document type: Case study
How Might Agriculture Develop in Southern Africa?
The report analyzes the complex political economy of Southern African agriculture, identifying governance and external financing as the primary uncertainties affecting the region's future. Through a stakeholder workshop in Harare, four distinct scenarios were developed, ranging from a high-investment, high-policy-quality future ('I believe I can fly') to a state of total failure ('This is the end'). The authors argue that while the region currently sits in a precarious position characterized by poor domestic policy and weak state capacity, there are opportunities to pivot toward growth through improved infrastructure, transparent land tenure management, and the strategic adoption of agricultural technologies like GMOs.
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Document type: Report
South Africa's current account deficit: are proposed cures worse than the disease?
The author contends that South Africa's current account deficit is sustainable because it is driven by capital inflows and the import of capital and intermediate goods rather than consumption. The paper warns that 'mercantilist' attempts to force a trade surplus through currency devaluation or trade barriers would damage the economy and hurt the poor. Instead, the author advocates for long-term competitiveness through the National Industrial Policy Framework (NIPF) and ASGISA, specifically by addressing low productivity, fostering technological change, and liberalising network industries like electricity and transport to remove structural bottlenecks.
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Document type: Research paper
A Business Vision for Africa
The report identifies political instability, crumbling infrastructure, a severe credit crunch, and the absence of the rule of law as the primary barriers to African economic development. It argues that while large-scale projects are often prioritized, the immediate economic payoff lies in the regular maintenance of existing transport and utility services and the reform of legal systems to protect property rights and enforce contracts. The document highlights a critical funding gap, noting that while Africa requires $64 billion in investments to meet growth targets, donors provide only about $14 billion annually. Corruption is identified as a pervasive corrosive force, with 52% of surveyed business organisations stating that bribes are necessary to open a business.
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Document type: Report
Growth Priorities for NEPAD
The report argues that Africa must prioritize 'getting the basics right' by shifting government spending from current consumption toward the maintenance of physical assets and the establishment of transparent legal and financial institutions. It outlines a ten-point plan to spur growth, including fighting corruption, reforming land ownership, adopting continent-wide macroeconomic targets, and accelerating the privatisation of key infrastructure to attract private investment.
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Document type: Report
Enough Promises: Africa Needs to Set Priorities
The report identifies a disconnect between government priorities and the needs of the business sector in Africa, highlighting corruption and infrastructure failure as primary barriers to growth. Based on dialogues with 56 business organisations and five studies, it asserts that stability in Africa is dependent on prosperity, which requires improvements in property rights, the rule of law, and power reliability.
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Document type: Report
NEPAD at the Crossroads
The document reports on a growing crisis of credibility for the New Partnership for Africa's Development (NEPAD), highlighting a significant gap between its visionary rhetoric and the actual implementation of projects. While some officials point to broader African progress and increased aid, critics, including the President of Senegal, argue that the NEPAD Secretariat has failed to deliver concrete results. Data from the African Development Bank reveals that a minority of infrastructure projects under the Short Term Action Plan (STAP) are being implemented. The text identifies several barriers to success, including a lack of regional capacity, failure to conduct feasibility studies, donor skepticism regarding unrealistic funding requests, and internal issues such as corruption and mismanagement.
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Document type: Research paper
THE governments of Mozambique and South Africa signed a R3 billion, 30-year concession in 1996 for a private consortium, Trans-African Concessions (TRAC), to build and operate the N4 toll road from Witbank, South Africa to Maputo, Mozambique.
The N4 toll road was established via a 30-year, R3 billion concession signed in 1996 between South Africa and Mozambique, operated by Trans-African Concessions (TRAC). The project utilized a financing structure of 20% equity and 80% debt, with the latter guaranteed by both governments. To manage user payment risks in Mozambique, TRAC implemented cross-subsidization using revenues from the South African section and provided discounts to regular Mozambican users. The road acted as a catalyst for further regional investment, including the Maputo Port and the Mozal aluminium smelter.
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Document type: Case study
Can the South African business experience in Africa offer a way forward?
The paper examines the challenges of doing business in Africa, noting that political instability and corruption deter investment. It highlights South Africa's position as a leading non-oil and gas investor in Africa, with firms investing an average of $1.4 billion annually since 1991. While some local businesses fear South African domination, the author argues that these investments introduce new technologies, increase consumer choice, and serve as a catalyst for broader international confidence in African markets.
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Document type: Research paper
South Africa’s Current Account Deficit: Are Proposed Cures Worse than the Disease?
The report argues that South Africa's current account deficit is sustainable and driven by net capital inflows that foster necessary structural change. It cautions against using currency depreciation, selective industrial policy (NIPF), or trade barriers to address the deficit, suggesting instead that the government focus on removing microeconomic bottlenecks in infrastructure and education to boost productivity.
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Document type: Report
Workshop on NTBs: Synopsis of Discussions
The synopsis details findings that approximately 25% of transport costs in the Durban-Gaborone corridor are attributed to non-tariff barrier (NTB) impediments, including toll roads, border posts, and poor road infrastructure. Discussions focused on the inefficiency of two-stop border processes within SACU, the impact of fuel levy redirection on infrastructure funding, and the potential for technological solutions to reduce downtime at toll plazas. Participants suggested expanding future research to include rail, ports, and a comparison of South Africa's cross-border trade costs against other emerging markets.
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Document type: Briefing
2nd KOREA-AFRICA FORUM SEMINAR
The document outlines the potential for synergy between Korea's technological and management expertise and Africa's abundant natural resources. It contrasts Africa's current economic struggles—including infrastructure deficits and the HIV/AIDS epidemic—with Korea's transition from a war-ravaged nation in the 1950s to an OECD member by 1996. The speaker emphasizes that Africa can learn from Korea's state-led industrialization and rural development initiatives, such as the Saemoul Undong, to achieve sustainable growth and poverty eradication.
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Document type: Statement
What the blocs are missing
The author contends that Africa's 14 regional economic communities are largely ineffective due to a lack of funding, staff, and political commitment. Using the Southern African Development Community (SADC) as a primary example, the text highlights how vague strategic documents like the Regional Indicative Strategic Development Plan (RISDP) fail to assign clear responsibility for implementation. The author suggests that national leaders may prefer weak regional bodies to avoid conflict and concludes that these organisations must adopt the same transparency and accountability standards required of national governments to eliminate inefficiency and corruption.
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Document type: Research paper
Bajo el Lema de Integración Regional y Alivio de la Pobreza: El Banco Europeo de Inversiones y su relación con IIRSA
The document analyzes the role of the European Investment Bank (EIB) within the Initiative for the Integration of the Regional Infrastructure of South America (IIRSA). It argues that IIRSA's focus on transport, energy, and telecommunications infrastructure poses significant risks to biodiversity and indigenous communities. The report claims the EIB's involvement, formalized through a 2004 memorandum with the Inter-American Development Bank (IDB), primarily benefits European corporations rather than local populations. It highlights a lack of environmental and social standards and criticizes the EIB for withholding project information. The report concludes that the alliance, supported by the European Parliament, promotes a developmentalist model that exacerbates social inequality and environmental degradation in Latin America.
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Document type: Report
South-South Economic Co-operation: The India-Brazil-South Africa Case
This 2006 report by the South African Institute of International Affairs examines the economic relationships between India, Brazil, and South Africa. Based on interviews with 30 South African companies and government officials, it identifies significant non-tariff barriers, high business costs, and a lack of awareness among the private sector regarding the IBSA initiative. While it notes growth in bilateral trade—such as the 2004 SACU-Mercosur preferential trade agreement—it highlights that many South African firms perceive IBSA as a political rather than an economic project. The report recommends reducing customs duties, improving infrastructure, and involving the business sector more deeply in the formulation of trade agreements.
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Document type: Report
Aid for Trade and the Doha Agenda: Implications for Southern Africa
The document records discussions from a 2006 workshop regarding Aid for Trade (A4T), emphasizing that trade liberalization alone is insufficient for economic development and must be paired with supply-side capacity and infrastructure support. It explores the role of the WTO, Bretton Woods agencies, and the EU's Economic Partnership Agreements (EPAs) in delivering this aid, while noting the importance of demand-driven approaches and private sector involvement in Southern Africa.
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Document type: After-action report
Why the Millennium Development Goals won't help Africa
The author contends that the MDGs provide 'political camouflage' for aid agencies and oversimplify development by targeting visible symptoms like hunger and disease instead of productivity and growth. The paper argues that focusing on universal primary education may divert resources from more commercially valuable technical and vocational training. To address these gaps, the document proposes 'African Millennium Growth Goals' centered on improving commercial infrastructure, investing in rural economies, enhancing technical skills, increasing domestic lending, and reducing bureaucratic corruption.
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Document type: Research paper
Success rate of Beijing's plans to alleviate poverty is unprecedented
The document highlights China's significant reduction in poverty from 500 million people in 1980 to under 90 million in 2000, driven by economic growth averaging over 8 percent annually since 1978. While growth is concentrated in eastern coastal cities, the government has implemented preferential policies and infrastructure projects in the west to address regional disparities. In Ningxia province, poverty levels dropped from approximately 70 percent in the early 1980s to about 30 percent through agricultural subsidies, urbanization, and infrastructure development.
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Document type: Research paper