I am happy to share my reflections having just returned from the AEZO Summit 2025, which took place November 26–28 in Luanda, Angola. This year’s event marked the 10th anniversary of the African SEZs Annual Meeting. With the theme “African SEZs: Catalyzing Sustainable Industrial Investment and Global Value Chains Integration”, the summit brought together representatives from Special Economic Zones from across Africa as well as policymakers and representatives from global organizations such as UNIDO and the UN.
It was my first time attending the summit, and I was most impressed to learn about how quickly AEZO has grown from just a handful of members in 2015 to over 200 members representing 48 African countries today. This growth reflects the increasing importance of Special Economic Zones (SEZs) as engines of industrialization and gateways for foreign direct investment (FDI).
My Main Takeaways
For African countries and SEZs, the ability to differentiate themselves with a clear, tailored value proposition is no longer optional. In a competitive global investment landscape, investors seek clarity on the following points and will be drawn to invest in regions that can provide the following:
- Unique sectoral strengths: Whether it’s Angola’s energy potential, Kenya’s tech ecosystem, or Morocco’s automotive clusters, SEZs must highlight their comparative advantages.
- Ease of doing business: Transparent governance, streamlined regulations, and investor-friendly policies are critical if SEZs want to attract foreign investors.
- Infrastructure readiness: From logistics corridors to digital connectivity, SEZs must demonstrate how they can provide the infrastructure needed to host international businesses.
- Sustainability and ESG alignment: Global investors increasingly prioritize zones that embed green growth and social value and resilience.
Key Themes of the Summit
The discussions and presentations in Luanda emphasized several recurring themes:
- Crafting differentiated SEZ strategies to attract targeted investment.
- Integrating African SEZs into global value chains through sectoral specialization.
- Building sustainable and intelligent infrastructure that supports long-term competitiveness.
- Strengthening regional collaboration to avoid duplication and foster complementary growth.
- Increasing investment within Africa specifically taking advantage of the AfCFTA (African Continental Free Trade Agreement).
These themes underscored the need for African SEZs to position themselves not just as local industrial hubs, but as integral nodes in global supply chains.
FDI Attraction from Europe and Asia: Manufacturing Opportunities
One of the most compelling discussions at the summit revolved around Africa’s growing appeal to investors from Europe and Asia, particularly in the manufacturing sector.
- European Investors: European companies are increasingly looking to Africa as a nearshore manufacturing base. Rising labor costs and sustainability pressures in Europe have prompted firms to explore African SEZs for industries such as automotive assembly, textiles, and renewable energy components. Morocco’s automotive sector, for example, has attracted significant European investment, positioning the country as a key supplier to EU markets. Similarly, East African SEZs are becoming attractive for European textile and apparel firms seeking competitive production costs while maintaining proximity to European consumers.
- Asian Investors: Asia, particularly China, India, and South Korea, continues to play a pivotal role in Africa’s industrialization. Chinese firms have invested heavily in SEZs across Ethiopia, Nigeria, and Egypt, focusing on electronics, machinery, and construction materials. India has shown growing interest in pharmaceuticals and agro-processing, while South Korea is exploring opportunities in electronics and green technologies. These investments not only bring capital but also transfer technical know-how, helping African SEZs climb the value chain.
- Manufacturing as a Priority: Manufacturing remains the cornerstone of Africa’s FDI attraction strategy. By offering competitive labor, abundant raw materials, and improving infrastructure, African SEZs are positioning themselves as cost-effective alternatives to traditional Asian manufacturing hubs. The challenge lies in ensuring that SEZs provide the right mix of incentives, logistics, and workforce development to sustain investor confidence.
Angola as Host
Angola, celebrating its 50th Independence Anniversary, positioned itself as a gateway for industrial innovation and investment. The host country did an excellent job showcasing its potential, including an informative site visit to the Luanda-Bengo SEZ (ZEE). Angola demonstrated how SEZs can align national strengths such as energy and logistics with global investor expectations. The host country also did a fabulous job showcasing its regional food and culture through the various events held during the event, specifically during the Gala dinner.
Final Thoughts
The AEZO Summit 2025 was more than a milestone; it was a strategic platform for African SEZs to refine their narratives and present themselves as competitive, sustainable, and globally integrated destinations. By crafting tailored value propositions, African countries can attract the right investors, unlock industrial growth, and secure their place in global value chains.
How ResearchFDI Can Help
At ResearchFDI, we understand the challenges SEZs face in differentiating themselves in a crowded global marketplace. Our expertise lies in helping SEZs craft compelling, sector-specific value propositions that resonate with European and Asian investors in manufacturing and beyond. We provide:
- Tailored Value Proposition Development: Identifying and articulating unique strengths that set each SEZ apart.
- Training and Capacity Building: Equipping SEZ teams with the skills to engage investors effectively and sustain long-term relationships.
- Benchmarking and Best Practices: Drawing on global case studies to help SEZs align with international standards.
- Outreach and Communication Support: Support for regional roadshows where we can connect SEZs to investors in markets such as Europe and Asia that are seeking investment opportunities in Africa.
By combining strategic insight with practical training, ResearchFDI empowers SEZs to move beyond generic messaging and present themselves as credible, competitive, and sustainable destinations for FDI. As Africa continues to attract investment from foreign markets, SEZs that invest in refining their value propositions and building investor confidence will be best positioned to lead the continent’s industrial transformation.
