Critical Issues for Chinese Investment in Special Economic Zones in Africa
Bryan Robinson ()
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Bryan Robinson: Nelson Mandela University
Chapter Chapter 6 in African Special Economic Zones, 2022, pp 137-173 from Springer
Abstract:
Abstract A meta-analysis is conducted on accessible information on Special Economic Zones throughout Africa to determine how these zones market themselves in a globally competitive market for foreign direct investment. Observations and discussions with Chinese investors provide a narrative on the importance of these incentives and attributes from their perspective. Financial incentives such as tax holidays and allowances, favourable customs duties and requirements, VAT exemptions, and duty-free imports of capital equipment, supplies and raw materials, are assessed in terms of their attractiveness to investors. Ease of business, management, infrastructure, customs office, ‘one-stop’ facilities, location, market opportunities, domestic market access, appropriate labour and skills, raw materials equipment and supply availability, ownership requirements and repatriation of profits, lifestyle offered, and various preferential trade agreements available to African countries, were criteria evaluated in terms of their propensity to solicit Chinese investment. The Chapter concludes with a reflection on the Chinese Special Economic Zone Model presented in the book.
Keywords: Special Economic Zone incentives; Tax holidays and allowances; VAT exemptions; Duty-free imports; Domestic market; Ownership restrictions; Repatriation of profits; Customs office; Preferential trade agreements; AGOA; Economic Partnership Agreements; Chinese policy towards Africa; Chinese Model of Special Economic Zones; African Model of Special Economic Zones; Sustainable Development; Ethiopia; Zambia; Nigeria; South Africa (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-8105-9_6
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DOI: 10.1007/978-981-16-8105-9_6
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