The legal and policy framework for special economic zones as an impediment to regional integration in the Southern African development community : a case study of Zambia

Abstract

Zambia has Special Economic Zones (SEZs) which are locally called Multi Facility Economic Zones (MFEZ). These SEZs operate under the Zambia Development Agency (ZDA) Act of 2006. At the same time, Zambia is also an active Member State of the Southern African Development Community (SADC). SADC has its own protocol on trade known as the SADC Protocol on trade which was consolidated in 2014. It has generally been said the simultaneous use of SEZs and Regional Trade Agreements creates a complex situation in that conflict is created between SEZs policies which are created by individual countries as well as regional trade policies. This study investigates the legal framework governing Zambian SEZs and the legal framework overseeing regional trade within the SADC region. Where there is no harmony in SEZs and regional policies on trade, SEZs are likely to act as an impediment to regional integration. This study thus establishes the general conflicts that exists between SEZs and Regional Trade Agreements and offers recommendations on now the two can be harmonized to ensure that both tools are beneficial to all countries in the region.