Special economic zones to fast track Kenya’s Vision 2030

NAIROBI: After decades of under-performance, the Chinese economy almost stagnated during the 1970s. This occasioned calls for systemic change and pervasive economic reforms, buoyed in part by signals from the top national leadership to institute open door policy. This was a qualitative shift from the centralised and planned economic policies hitherto adopted by the country. To move its economy towards modernisation and internationalisation, China chose Special Economic Zones (SEZs) which are perhaps the most emblematic of market-oriented economies only helped to underscore that dramatic shift.

By 1980, Shenzhen a tiny fishing village in Southern China bordering Hong Kong and with a population of about 300,000 people, was designated as an SEZ to engender economic transformation and attract foreign direct investment. SEZs are designated areas that enjoy preferential treatment in terms of economic laws and policies often with a view to spur export-oriented industries and create employment. They possess common features, strategic locations that enjoy close proximity to potential markets and supply lines and next ports. In the early years, Shenzehn was characterised by light industries where textiles, household goods, furniture and electronics were produced. Just half a decade after its formation, however, researchers and practitioners alike attested to the performance of Shenzehn. Not only did light industries flourish, but the desired heavy and high-end industries made their mark as well.