Day: June 7, 2024

This policy brief examines the benefits of traditional SEZs in comparison to single-factory SEZs and concludes that small single-factory SEZs in Zanzibar and Tanzania underperform and do not deliver the expected advantages. The report emphasizes the critical need for better data and improved government information sharing about single-factory SEZs in the region and recommends discontinuing the promotion of this model by the governments of Zanzibar and Tanzania.

Despite globally acknowledged beliefs in the positive impact of tax incentives, research reveals that they may not significantly influence Special Economic Zone (SEZ) performance. The brief identifies several reasons, including the absence of revenue generation, potential conflicts of interest, and the disadvantages faced by local supplier firms. Based on these findings, the policy brief presents three vital policy recommendations for the government of Zanzibar.