Abstract:
The Belt and Road Initiative (BRI) is a historical initiative of China. It has played significant roles as the sole most crucial endeavor by the country on the international stage. The initiative aims to put the nations of Asia, Europe, Oceania, and Africa on a new trajectory of human development and higher growth through infrastructural connectivity, investment, and augmented trade. The authors have examined some of the flagship Special Economic Zones (SEZs) in Africa that are included in the initiative to analyze their impacts till now, giving particular emphasis to the Eastern Industrial Zone (EIZ) of Ethiopia. In this regard, the impacts of SEZs on employment creation, investment promotion, export growth, foreign exchange earnings, the contribution for urbanization, skill formation, knowledge and technology transfer, their backward linkages with local firms, and some other specific aspects of the projects were addressed. Besides, critical analysis is made concerning why SEZs in Africa underperform uniquely, and some of the fundamental challenges facing these SEZs are identified. Our findings have revealed that SEZs so far have shown mostly positive impacts and have been facing challenges. Therefore, to make these projects sustainable and successful, the Chinese and African governments need to undertake close follow-ups, work together towards solving concerns, and capitalize on the achievements.
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