Attracting investment and talent for research and development (R&D) projects is a core objective for many special economic zones (SEZs) around the world. For zones with a focus on high-tech industries, the ability to source skilled workers for R&D is essential to success. By providing an environment that fosters innovation and creativity, SEZs can help to attract and retain the talent needed to support their tenants.

The Kigali Special Economic Zone (KSEZ) in Rwanda is one example of how an SEZ can facilitate technical talent for its tenants. Let’s take a closer look at some features of KSEZ that have been successful in supporting R&D efforts overall.

In order to attract R&D investments and operations, KSEZ built itself around incentives that support the logistics required for R&D. First and foremost, this requires that the zone provide high-quality infrastructure, which is frankly a requirement for any competitive SEZ. For KSEZ, this includes access to reliable power, water and telecommunications services, as well as modern office spaces and research facilities. 

Beyond the essential infrastructure, however, KSEZ is currently expanding with the development of Kigali Innovation City (KIC). Once completed, the $300m, 61-hectare project will provide additional resources, such as state-of-the-art laboratories, research facilities, and access to a network of experts and mentors who can work with the businesses and entrepreneurs within the zone. KIC is designed to foster collaboration and partnerships between companies, universities and research institutions, thereby providing training and educational opportunities for workers.

In addition to maintaining quality infrastructure and services for its tenants, KSEZ partners with academic institutions to create on-ramps for new pools of high-skill talent. The primary example of this arrangement is Carnegie Mellon University. CMU’s very first campus on the African continent is actually located within the zone itself. Other universities with a presence inside KSEZ include the University of Rwanda and Africa Leadership University. The in-house connections to credentialed universities provide tenants with downstream access to top-tier talent and research resources.

Two notable tenants within KSEZ that have directly benefited from this ecosystem are Mara Phones, a company specialising in the design and production of affordable smartphones for African markets; and Volkswagen, the German automobile manufacturer. 

Mara Phones’s flagship factory is located within KSEZ and is equipped with state-of-the-art smartphone production facilities. So far, the plant has been able to attract quality technical talent from across the region, drawn to the opportunity to work in a cutting-edge environment and contribute to the development of uniquely African products.

Volkswagen is another R&D-focused tenant of KSEZ. It established a manufacturing facility within the zone in 2018, with the aim of producing cars for the east African market, including electric vehicles. The facility is equipped with modern assembly lines, making it an attractive location to work with the latest automotive technology and develop sustainable transportation solutions. 

For zones committed to attracting talent for R&D, there are two specific lessons that we can draw from KSEZ’s experience. First, investing heavily in infrastructure and offering a modern, well-equipped environment which supports innovation can attract high-quality tenants and entrepreneurs. Secondly, partnering with and housing educational institutions provides long-term access to talent and research resources.

While KSEZ’s talent attraction methods alone do not account for its overall success, they greatly contribute to its ability to support its tenants. By providing high-quality infrastructure, support services, and academic partnerships, KSEZ has created an environment that fosters innovation, driving economic growth and development in Rwanda and the wider east African region.

Preston Martin is the president of Adrianople Group, a business intelligence advisory firm.

This article first appeared in the June/July 2023 print edition of fDi Intelligence