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The Jizzakh Free Economic Zone, Uzbekistan’s 7th SEZ, has been providing new jobs and bringing millions of dollars in investment to the country as established industries move to Uzbekistan. It has grown substantially in size and volume.

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In 2018, the zone proved it was able to attract investment not just from China and Russia, but also from established Western companies such as. German IT firm Schneider Group and French auto manufacturer Peugeot, that invested in an automotive plant at the Jizzakh zone, which would employ 600 people and produce 10,000 freight and passenger vehicles for export. By 2018, the zone had attracted $106 million USD.

In 2019, the zone produced goods valued at $60 million, employed over 3,000 people, and had 20 projects being implemented. These projects brought in $250 million in investment, and was expanded by 180 hectares.

Read our article about Jizzakh Free Economic Zone to see how it has grown massively. Link in our Bio.

The Jizzakh/Jizzax Free Economic Zone was founded as Uzbekistan’s 7th special economic zone (SEZ) in March 2013: The zone was created through presidential decree no. 4516 of 2013. The zone was named for its location in the city of Jizzakh, an ancient settlement with a population of about 180,000 which was an important stop on the Silk Road between Samarkand and the Ferghana Valley.

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In early 2019, the Ministry of Investment announced that they would expand the zone from 336 hectares to 1000 hectares. Existing plots were almost entirely sold out, and the estate found itself unable to accommodate new investors seeking to enter. A second location, called KIMA 2, is scheduled to be built elsewhere in the city Makassar. The Makassar Industrial Estate is also working to modernize its logistics systems.

Visit the Makassar Industrial Estate, one of Indonesia’s fastest growing SEZs, on our Zone Map. Link in our Bio.

The tenants of Makassar Industrial Estate belong to the following industries: seafood processing, cold storage, animal feed, and agricultural processing. One notable tenant is Indofood, one of Indonesia’s largest food processors. Another notable tenant is Plastindo, a large plastic packaging manufacturer.

Read our article to know how Makassar Industrial Estate is playing a major role in the region. Link in bio.

The Makassar Industrial Estate is a Special Economic Zone (SEZ) located on the Indonesian island of Sulawesi.

It is located right outside of the city of Makassar. Makassar is the capital of the South Sulawesi province, and has a population of 1.5 million, making it the 13th largest city in the country.

The estate is publicly owned and operated. Tenants include companies in the food processing and manufacturing industries. They enjoy various tax and regulatory incentives, as well as access to transportation infrastructure.

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💬 Is there a universal model for the financing of a zone?

No, there is no universal model for the financing of a zone as it depends heavily on the type, size, ownership, and other factors. As the scope and potential of zones continues to adapt it is likely we will see further additions to the financing models of SEZs.

Read our article to know more about how Special Economic Zones are financed. Link in our bio.

💬 Is there a universal model for the financing of a zone?

No, there is no universal model for the financing of a zone as it depends heavily on the type, size, ownership, and other factors. As the scope and potential of zones continues to adapt it is likely we will see further additions to the financing models of SEZs.

Special Economic Zones (SEZs) require a substantial amount of investment and are reliant on government participation to maintain the incentives granted to companies established within them. This meant that the initial SEZ developments were taken on by governments.

Since proving successful and relatively stable, depending on the host country, the models used to finance SEZ projects have diverged.

This gives the three broad models of SEZ financing: Government, Public-Private Partnership, and Private.

Read our article to know more about how Special Economic Zones are financed. Link in our bio.

Special Economic Zones require high levels of capital that comes from the host country's government, private enterprise, international development institutions, and foreign governments.

When the concept was in its infancy the risk was typically taken on by governments who could place more confidence in the continuity of policy regarding the created zones.

As zones continued to develop and policy stabilized, the benefits became clearer to private entities, resulting in an increase in private zones since the year 2000.

Read our article to know more about how Special Economic Zones are financed. Link in our bio.

In 2018, 54 countries in Africa joined together to form the continent’s largest free trade area: the African Continental Free Trade Agreement, or AfCFTA. A trade agreement of this size is comparable to the founding of the European Union.

In 2013 Chinese President Xi Jinping revealed the intention of a cooperation project between China and Central Asian countries to strengthen trade routes along Europe, Africa and Asia, reminiscent of the ancient Silk Roads. Within such an initiative, which would later become known as the Belt and Road Initiative, a huge amount of infrastructure investment would be exploited by all countries in this area of interest.

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The park expects to attract 30 resident companies with a total investment of US$600 million, creating 12,000 jobs for local people.

The creation of the Sino-Uganda Mbale Industrial Park represents an opportunity not only for China's interests through the Belt and Road Initiative, but also for the development of local entrepreneurship, which is key to the sustainable development of the country.

Interested in knowing more?
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