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October 5, 2024

A Failed Special Economic Zone Experiment: Malawi 1995-2023

Prof. Matthew McCartney

Head of Research

This policy brief critically examines the Export Processing Zones Act of 1995 in Malawi, which aimed to promote export-oriented manufacturing through Special Economic Zones (SEZs). The brief argues that the Act was fundamentally flawed, leading to the collapse of Malawi's SEZ experiment by the mid-2000s. The failure is attributed to poor legislative design rather than external factors like the end of the Multi-Fiber Agreement or the Global Financial Crisis. With the passage of a new SEZ Act in 2023, this brief sets the stage for further analysis on whether Malawi has learned from past mistakes.

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