Economic Development

In this blog post I will consider policy initiatives for tackling the issue of illicit flow of funds out of African countries and the implications of these activities on investment and trade in the context of the AfCFTA. Combating Illicit Financial Flows has been a difficult task for African countries and, the best approach to tackle this endemic problem may be to develop and implement comprehensive mechanisms that will encourage the disclosure of these illegal activities in a timely manner. Such disclosure can best be realized by the adoption of a regional whistleblower protection directive.

Developmental statism differs from the R4I model insofar as the economic activities of foreign state firms, as opposed to local state firms, drive R4I dealings. This should concern policy makers because of what an externally driven agenda implies for the long-term development of host states.

For the AfCFTA to succeed will require more than its regulatory framework; a supporting framework is also required and this is found in what Douglass North has termed “mental models”. Mental models are the necessary norms and beliefs of policy makers - their perceptions of the world around them.

The present report entitled “Special Economic Zones: Emerging Frontiers for Industrial Growth” covers the period of January – March 2019. The Report is divided into sections that provide important updates on the current steps being taken by the Federal Ministry of Industry, Trade & Investment (FMITI) and the Federal Government of Nigeria (FGN) in thematic areas that include: trade and trade policy, SMEs, investment, industry, the African Continental Free Trade Area Agreement (AfCFTA) and general news update.