Special Economic Zones will create new jobs for youth

An aerial view of Two Rivers Mall which has been gazzetted as a Private Special Economic Zone. [File, Standard]

It is ironic that the more developed economies are facing accelerated population decline and shortage of workers, the more they have tightened their borders and made it difficult for skilled migrants to cross their borders. 

The ageing Western population presents an opportunity for young, skilled Kenyan workers finding it difficult to get jobs at home. While the major Western economies require foreign workers to address the shortage, they are not ready to open their borders to economic immigrants.

Now, thanks to digital technology, skilled Kenyan workers can take advantage of these job openings while working from here. At the Special Economic Zones Authority (SEZA), we view facilitation of investors to set up here as a cost-effective strategy of creating opportunities.   

Last month, the Two Rivers International Financial and Innovation Centre (TRIFC) secured a licence to operate a Special Economic Zone. It becomes the 7th private SEZ, adding to Tatu City in Kiambu, Africa Economic Zones in Uasin Gishu, Compact Free Trade Zone in Nairobi, Northlands in Kiambu, Mt Kipipiri Golf & Resort in Nyandarua and East Africa Free Zone in Mombasa.

The Two Rivers SEZ will have an international financial services centre, international data centres and online transmission networks; which will create thousands of jobs and bring in foreign direct inflows.

Kenyan professionals as well as foreign expatriates will have an opportunity to sell their services globally once the SEZ is set up, creating thousands of jobs and earning the Kenya Revenue Authority (KRA) taxes that would never have accrued if such jobs were domiciled in other jurisdictions.

Philippine Special Economic Zones, for example, generated $63 billion worth of export income and some 1.8 million workers between January and December 2021, according to Philippine Economic Zone Authority (PEZA) data.

Unlike manufacturing-focused SEZs, a services business park like TRIFC simply provides office space for investors who get tax breaks, friendly regulations and utilities. Businesses located in SEZ will help stimulate economic growth and create new, high quality jobs, while boosting personal and corporate income tax. 

The SEZ’s focus will be on enterprises in the service sector and doing business internationally and that are seeking a location where they can remain globally competitive. Nairobi has a unique opportunity to position itself as Africa’s gateway to the world, just like Hong Kong is to China, London to Europe and New York to the US.

Tech, innovation and incubation firms are uniquely suited to set up in SEZs as they attract globally competitive talent.

The InterNations’ Expat City Ranking 2022 report ranked Nairobi as the world’s 9th best city for expats to live in.

That means Nairobi has a solid base of a skilled labour force for most professional categories. With the “Technology Pioneers 2022” ranking Kenya the most innovative African nation, global firms can tap this talent to penetrate the continent.

The writer is Chairman at Special Economic Zones Authority