‘Learning and Unlearning’: Core Leadership Competencies for Driving Success in Special Economic Zones in South Africa

Abstract

Special Economic Zones (SEZs) are instrumental in promoting industrialisation and economic growth in many countries, especially within the developing world. While various SEZs established in South Africa are expected to drive local economic development processes, their performance has been erratic due to various governance, regulatory, and infrastructure issues. This study explores the core leadership competencies required to enhance the success of SEZs. It emphasises the importance of continuous learning and unlearning outdated practices. The paper draws on Peter Senge’s Continuous Learning Theory to explain how SEZ leaders could adapt to dynamic environments and provide sustainable growth. The study addresses two key research questions: (1) What leadership competencies are necessary to efficiently govern SEZs? (2) How do continuous learning and unlearning by SEZ leaders make a difference in inducing sustainable growth? This systematic review applied the PRISMA methodology to source the data from databases like Google Scholar and Scopus, among others, for sources published between 2010 and 2024. Findings revealed that the core leadership competencies required for effective SEZs include innovation, adaptability, and strategic thinking. This paper argues that continuous learning is imperative for leaders to keep pace with the complexity of shifting global economic circuits while unlearning is critical to avoid common pitfalls. This study contributes to the literature by recommending that leadership development inside SEZs be more contributory toward economic outcomes and encourages further research into what part leadership will play in regional economic development.

1. Introduction

Globally, SEZs have played important roles in driving industrialisation, and countries like China, South Korea, and Vietnam have employed SEZs to successfully turn their economies into manufacturing powerhouses. They have emerged as critical factors in fostering economic development across developing regions, especially in Africa. They incentivize FDI inflows into the economy, promotion of industrial development, and creation of employment opportunities. Rodríguez-Pose et al. (2022) established that fiscal and infrastructural incentives are accorded under the SEZ policy to help regional development bottlenecks and integrate countries into global production networks. Karambakuwa et al. (2020) argue that SEZs are important in responding to regional developmental disparities through the promotion of economic diversification and industrial growth which spur employment creation. To these researchers, SEZs attract FDI and bring infrastructural development in a bid to resolve regional inequalities and integrate local economies into global production chains, particularly in southern Africa (Karambakuwa et al. 2020). Hartley and Morrow (2021) note that the SEZs act as a channel to integrate regions into global production networks by availing fiscal incentives, which include tax relief, as well as infrastructural support of a high order to facilitate the setup of the export-oriented industry.

There are various types of SEZs in South Africa. Normally, they are categorised as Industrial Development Zones (IDZs), which focus on export-driven industrial activities, Free Ports, offering duty-free logistics and warehousing facilities, and Free Trade Zones (FTZs), facilitating trade by removing customs and tax barriers (Tshwane Automotive Special Economic Zone 2021). Additionally, Sector Development Zones (SDZs) support specific industries to stimulate regional economic growth (Department of Trade and Industry 2014). The South African SEZs were created as one strategic initiative for promoting industrialisation, attracting foreign direct investment, and providing employment opportunities in targeted areas (Makgetla 2021). The programme on SEZs in the country aimed to contribute to overcoming some structural economic problems, regional development, and, importantly, integrating the economy into global value chains.

Regardless of their noble objectives, the experiences of SEZs in South Africa have been uneven; some zones have failed to achieve these goals due to numerous regulatory hurdles, deficits in infrastructure, and weak governance. However, the Coega and Dube TradePort show promising results in attracting investments and stimulating a local economy, hence giving the potential for growth that SEZs can realise through proper management (Sishi 2022). Despite the immense potential of SEZs, their success often depends on the quality of leadership that governs them (Zeng 2015). Effective leadership ensures that SEZs fulfil their role in promoting local economic development and achieving their objectives of industrial upgrading, knowledge transfer, and capacity building (Naeem et al. 2020).

A key gap in the literature is the limited focus on leadership competencies that are necessary in managing and implementing SEZs in a way that realizes contributions toward sustainable local development. The literature has so far been focused on the structural and policy frameworks without a detailed examination of the required leadership competencies for dealing with the complexities associated with SEZ leadership (Chiukira 2020). While a lot of research points towards the importance of governance and institutional frameworks, less has been said regarding how leadership can trigger mechanisms for innovation, learning, and adaptation to the changes in the global economy in SEZs (Chauke 2022; Rodrigues and Steenhagen 2022).

Furthermore, the continuous learning and unlearning of obsolete practices is a less discussed aspect of leading SEZs (Alves and Lee 2022). The literature review in the current study indicated that the leaders need to take note of emerging trends, discard the unsuccessful approaches, and learn from the successful models of SEZs in order not to fall into the common pitfalls of the economic enclaves with limited spillover benefits associated with these zones (Alves and Lee 2022). This paper tries to fill this gap through, primarily, an exploration of what critical leadership competencies are essentially needed to successfully manage South African SEZs by learning new competencies and unlearning outdated ones.

To understand the various complexities and contestations associated with the ‘learning and unlearning’ assumption, this paper is premised on Peter Senge’s (2014) Continuous Learning Theory, which emphasises the importance of ongoing learning, adaptation, and unlearning outdated practices in dynamic environments like SEZs. The theory is particularly relevant as it addresses how SEZ leaders must continuously evolve their competencies to navigate the complexities of promoting sustainable economic growth, taking cognisance of the trends in both the micro and macro environments. In line with this theoretical foundation, two key questions are asked in this study:

i.

What are the core leadership competencies required to effectively implement and manage SEZs for promoting local economic development?

ii.

How can SEZ leaders engage in continuous learning and unlearning to overcome challenges and drive sustainable growth within their zones?

After this introduction, the paper is structured as follows. Firstly, it discusses the methodology and the data collection process, followed by the synthesis of the studies. After that, the paper focuses on the findings. The final section is composed of the discussion and the conclusion.

2. Materials and Methods

To explore the key questions, the study adopts a PRISMA (Preferred Reporting Items for Systematic Reviews) approach. This approach allows for a comprehensive and systematic review of the existing literature and a detailed examination of the intersection between leadership competencies, SEZ management, and continuous-learning sustainability. In this paper, the PRISMA adopted from the study of Abelha et al. (2020) was rigorously followed, including developing a review protocol that outlined the article selection criteria, search strategy, data extraction, and data analysis procedures.

Several terms were used in the reporting of the PRISMA process that are worthy defining from the outset. The term “records” was used to refer to all initial data sources identified, including journal articles, reports, and other publications. As the review process progresses, the term “studies” was applied specifically to those records that were peer reviewed, screened, assessed for eligibility, and ultimately included in the systematic review. “Reports” refers to non-peer-reviewed organizational documents, such as government publications, which were considered separately from academic studies.

2.1. Eligibility Criteria

The eligibility criteria in the study were put in place to systematize a search for studies and reports relevant to the concept of leadership at SEZs specifically on competencies and continuous learning/unlearning processes. Inclusion required studies to be peer-reviewed articles or reports published in English between 2010 and 2024, available in full text, and addressing the research questions in part or explicitly. This was to capture the most recent developments on SEZ leadership, building on global frameworks such as those highlighted by Zeng (2016). The 2010 to 2024 period captured critical shifts in SEZ development globally, including the integration of sustainability, governance innovation, and leadership competency frameworks (Zeng 2016). From 2010 onwards, SEZs began to transition from traditional export-oriented zones to multifaceted economic hubs that prioritize local economic development, knowledge transfer, and environmental sustainability. Studies such as Zeng (2016) and Frick et al. (2019) highlight this transformation and emphasize leadership as a central element in navigating these complexities.

Excluded studies included those outside the specified timeframe (2010–2024), unrelated to SEZ leadership, or lacking full-text availability, aligning with methods used in similar reviews to filter irrelevant or inaccessible content. The relevance of included studies was determined by their direct and indirect connection to the research questions. For instance, works such as Botha (2023) and Frick and Rodríguez-Pose (2022) provided critical insights into strategic planning, stakeholder engagement, and adaptability in SEZ governance. Other studies, such as those by Senge (2014) and Zeng (2021), addressed learning practices, offering valuable lessons for SEZ leadership. Reports like “Evaluating South Africa’s SEZs” (2023) and “Leveraging Special Economic Zones for Growth” (2023) contributed practical perspectives on governance and innovation. This rigorous and justified inclusion process, supported by previous studies (Frick et al. 2019), ensured a comprehensive understanding of the leadership dynamics within SEZs while maintaining methodological integrity.

A three-stage review process was implemented to ensure reliability. Two independent reviewers screened titles and abstracts, excluding studies not relevant to the review. Five researchers independently reviewed the selected studies, and the rest of the articles were checked for relevance by a final reviewer. Any disparities in opinion were discussed to achieve a consensus and referred to the third reviewer wherever needed. This current systematic review therefore followed established approaches like those of Frick et al. (2019) and was able to facilitate an inclusive, rigorous, and consistent process for the identification and selection of relevant studies. By carrying out a systematic process of this nature, this study selected only works that made contributions toward understanding SEZ leadership competencies and continuous learning practices.

2.2. Study Selection

Identification, screening, and eligibility were carried out using a standardised procedure to capture all relevant studies in the study selection process (Frick et al. 2019). Records were identified from databases and other sources during the identification phase. Two researchers independently reviewed the titles and abstracts of studies included in the screening phase to determine whether they were relevant based on predefined inclusion and exclusion criteria. The full-text articles were assessed for studies judged to be potentially relevant during the eligibility phase to determine their eligibility for final inclusion. Lastly, the inclusion phase: all the studies and reports that met the inclusion criteria were included in the study.

2.3. Data Collection Process

Data were collected by extracting relevant information from the selected studies using a standard data extraction sheet. The variables of interest extracted using the sheet included the following: names of authors and publication year, leadership competencies identified, challenges of SEZ management, learning and unlearning practices discussed, study methodology, and key findings. Data extraction was independently conducted by three researchers, writing in an evidence table (see

Table 1. Example of the data extraction sheet. Source: author illustration.

Authors	Year	Title	Leadership Competencies	Challenges in SEZ Management	Learning/Unlearning Practices	Methodology	Key Findings
Botha, C.	2023	Leadership in SEZs	Strategic foresight, adaptability	Bureaucratic inefficiencies	Unlearning rigid policies, adopting PPPs	Case study, interviews	Strategic alignment ensures SEZ competitiveness and growth.
Zeng, D.	2015	SEZ Governance in China	Collaboration, innovation	Lack of stakeholder engagement	Learning from global best practices	Comparative analysis	Chinese SEZ success hinges on collaboration and infrastructure.
Nel and Rogerson	2013	Adapting SEZ Models	Flexibility, innovation	Outdated regulatory approaches	Pivoting to high-tech industries	Thematic analysis	Embracing new industries is critical for SEZ success.

). The authors extracted data from the studies and reports that met the inclusion criteria.

2.4. Data Items

The studies and reports included in this review collectively highlight essential leadership and management practices within Special Economic Zones (SEZs), emphasizing governance structures, leadership adaptability, and strategies for continuous learning and the unlearning of outdated practices. These studies underscore SEZs’ role as mechanisms for economic development, foreign direct investment (FDI) attraction, and fostering socio-economic growth.

South African SEZs, such as the Coega SEZ, feature prominently in studies like Botha (2023) and reports such as Qumba (2023), which emphasize the socio-economic contributions of SEZs, including job creation and infrastructural development. Reports like “Leveraging Special Economic Zones for Growth” (2023) and the “Leadership Management Competency Framework” (2023) underscore the importance of strategic planning, innovation, and adaptability in overcoming governance challenges. Global perspectives are offered by Rodríguez-Pose et al. (2022) and Zeng (2021), who analyse SEZ leadership practices in China and Vietnam, emphasizing the importance of stakeholder engagement and strategic foresight. Similarly, reports like “Chinese Special Economic Zones: Lessons for Africa” (2019) and “Assessment of Industrial Cluster Policies in Vietnam” (2019) demonstrate how leadership strategies have been effectively applied in Asian SEZs, offering transferable lessons for the South African context.

The integration of findings from reports and journal articles provides a holistic understanding of SEZ leadership competencies. While the studies by Zeng (2021) provide academic insights into governance and adaptability, practical implications are drawn from reports such as “How Can Africa Ensure Success for SEZs?” (2023). Together, these sources highlight the critical need for innovative, collaborative, and adaptable leadership to address the multifaceted challenges of SEZs in South Africa and beyond.

2.5. Constitution of the Corpus of Analysis for the Study

The retrieved studies and reports were organized chronologically by year of publication and then alphabetically by the surname of the first author. Each distinct study was thus uniquely coded to allow thematic content analysis through Bardin’s strategies and procedures, ensuring systematic review. A total of 287 records were identified from Google Scholar (n = 70), Scopus (n = 81), Web of Science (n = 59), and Consensus AI (n = 68). Some records were also acquired from government and organizational reports (n = 30).

After deduplication, 150 duplicate records were removed, leaving 137 unique studies. Of these, 109 studies were excluded for failure to meet the inclusion criteria based on irrelevance to the leadership of SEZs, unavailability in full text, and lack of congruence with the research questions. The remaining records included 30 studies and reports that were assessed for eligibility and addressed the research questions on leadership competencies and the learning/unlearning processes in SEZs and comprised 13 journal articles and 17 non-peer reviewed reports.

Thematic structuring of contents pointed at leadership competencies in effectively managing SEZs through collaboration, adaptability, and innovation. Worldwide examples in the case of South Korean, Chinese, and Vietnam SEZs added to the richness of the reviewed South African experience. This systematic review of selected articles and reports sets the stage for a proper understanding of effective leadership in SEZs through practical and strategic lessons from governance systems (see Figure 1 and

Table 2. Studies and reports included in the review.

Category	Author(s)	Year	Title	Relevance/Justification for Inclusion
Leadership Competencies Necessary to Govern SEZs	Botha, C.	2023	The Role of Special Economic Zones in Spatial Planning in South Africa	Highlights strategic planning and leadership roles in SEZ governance.
	Frick, S.A. & Rodríguez-Pose, A.	2022	Special Economic Zones and Sourcing Linkages with the Local Economy	Discusses leadership competencies like stakeholder engagement and economic adaptability in SEZs.
	Alves, A.C. & Lee, C.	2022	Knowledge Transfer in the Global South	Explores innovation-driven leadership in SEZs, focusing on knowledge sharing and adaptability.
	April, Y.	2016	Assessing Preconditions for Effective Special Economic Zones from a South African Local Governance Perspective	Provides insights into governance frameworks and leadership roles in South African SEZs.
	Alhassan, T.F.	2023	The Role of Special Economic Zones in Achieving Sustainable Development in Nigeria	Discusses the role of leadership in achieving sustainability and development outcomes.
	Grant, R., Carmody, P., & Murphy, J.	2020	A Green Transition in South Africa?	Focuses on how leadership and innovation drive sustainability initiatives in SEZs.
Continuous Learning and Unlearning by SEZ Leaders	Senge, P.M.	2014	The Fifth Discipline Fieldbook	Foundational resource on continuous learning frameworks and systems thinking for organizational leaders.
	Chongsheng, Y.	2024	SEZ Development in South Africa: A Case Study of Coega SEZ	Examines the dynamic leadership adjustments in response to changing economic and regulatory conditions.
	Dube, C., Matsika, W., & Chiwunze, G.	2020	Special Economic Zones in Southern Africa: Is Success Influenced by Design Attributes?	Explores leadership adaptability and lessons learned from SEZ practices in southern Africa.
	Rodríguez-Pose, A., Bartalucci, F., et al.	2022	The Challenge of Developing Special Economic Zones in Africa	Examines the role of learning and unlearning in addressing common pitfalls in SEZ governance.
	Zeng	2021	Global Experiences with Special Economic Zones: Focus on China and Africa	Provides evidence on how leadership evolves in response to diverse global SEZ challenges.
	Rahmafitria, F., Purboyo, H., & Rosyidie, A.	2019	Agglomeration in Tourism: The Case of SEZs in Regional Development Goals	Discusses how leadership unlearns traditional practices to accommodate innovative approaches.
	Rodrigues, C., & Steenhagen, P.	2020	SEZs and China’s Development Promotion	Examines leadership’s role in transferring and unlearning outdated practices for effective SEZ functioning.
Relevant Reports	Qumba, M.	2023	Evaluating South Africa’s Special Economic Zones	Analysis of South Africa’s SEZ program, focusing on legal frameworks, governance structures, and lessons from BRICS countries.
	Centre for Development and Enterprise (CDE).	2018	Special Economic Zones: Lessons for South Africa from International Evidence and Local Experience	Highlights governance challenges, tailored policies, and international best practices for leadership adaptation and innovation within SEZs.
	Inclusive Society Institute.	2023	Leveraging Special Economic Zones for Growth	Strategies for improving SEZ performance with emphasis on adaptability and strategic planning, highlighting leadership’s role in fostering sustainable growth.
	World Economic Forum.	2015	How Can Africa Ensure Success for Special Economic Zones?	Provides insights on policy frameworks, leadership roles, and innovation to address both research questions.
	Department of Public Service and Administration (DPSA)	2008	Leadership Management Competency Framework	Identifies critical leadership competencies such as strategic thinking, adaptability, and
				innovation, directly addressing the research focus.
	African Development Bank.	2019	Chinese SEZ Lessons for Africa” (2019). African Economic Brief.
	Jarbandhan, D.	2011	The Evolution of Leadership Competencies for the South African Public Sector	Highlights the critical need for a leadership competency framework in South Africa’s public sector to address globalisation and rapid organisational changes.
	World Bank	2008	Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development	Provides insights into SEZ governance structures and the role of strategic leadership in driving success, offering relevant lessons for South African SEZs.
	Zeng, D.	2015	Global Experiences with Special Economic Zones	Reviews global SEZ practices, including China’s model, and offers lessons on leadership, innovation, and governance applicable to South Africa.
	Department of Public Service and Administration	2008	Leadership Management Competency Framework	Establishes the importance of core and process competencies for senior managers, emphasizing adaptability, stakeholder engagement, and strategic alignment.
	UNCTAD	2019	World Investment Report: Special Economic Zones	Analyses SEZ performance globally, underlining leadership roles in fostering innovation and economic integration, with examples from Vietnam and South Korea.
	Africa Economic Brief (AfDB)	2015	Chinese Special Economic Zones: Lessons for Africa	Discusses sustainability-focused leadership strategies in SEZs, offering insights into adapting China’s successful SEZ model to African contexts.
	Ministry of Planning and Investment, Vietnam	2020	Assessment of Industrial Cluster Policies in Vietnam	Evaluates the role of leadership in driving competitiveness within industrial clusters, with specific reference to Vietnam’s SEZ experiences.
	Jeong and Park (2016)	2016	Special Economic Zones: What Can Developing Countries Learn from the Korean Experience?	Offers a detailed analysis of South Korea’s SEZ policies, focusing on leadership’s adaptability and strategic innovation.
	World Economic Forum	2023	How Can Africa Ensure Success for Special Economic Zones?	Provides actionable insights on collaborative leadership in SEZ governance, focusing on fostering partnerships across sectors.
	Department of Trade, Industry, and Competition (DTIC), South Africa	2023	Leveraging Special Economic Zones for Growth	Discusses South African SEZ leadership strategies for enhancing FDI attraction and regional economic integration.
	Department of Trade, Industry and Competition (DTIC)	2017	Special Economic Zones: Special Report.	It provides a detailed account of the South African government’s strategies, policies, and practices related to Special Economic Zones (SEZs). The report serves as a primary source for understanding the regulatory framework, governance mechanisms, and objectives of SEZs in South Africa.

below).

2.6. Risk of Bias Assessment

The methodologies followed in the various data items to establish the risk of individual biases were systematically reviewed. This included assessing the design used in a study, how data were collected, sample size, and objectivity of analyses. Data items were critically analysed for any potential biases, especially regarding how SEZ leadership and management competencies had been addressed. Researchers reviewed the data items independently for consistency in reviewing bias. Any discrepancies noted were then resolved by consensus.

Publication bias, for example, was assessed by observing a publication of studies containing only positive or statistically significant results. Selection bias was considered in the review process, where each study and report were evaluated against inclusion and exclusion criteria to ensure that the review captured all relevant literature and that the studies included were not disproportionately biased toward certain models of SEZs or specific regions. Other biases, such as performance and reporting biases, were assessed from the transparency of the methods used and further the extent to which the studies considered variables including leadership challenges and socio-economic impacts in various contexts. An attempt was made to ensure that representative, objective, and methodologically sound studies had been selected.

2.7. Data Synthesis

In synthesising data on leadership competencies in Special Economic Zones (SEZs) specific to South Africa, the studies and reports reviewed were categorised by their focus on local governance, leadership challenges, and the socio-economic impacts of SEZs. The key themes that emerged from these studies include strategic foresight, governance structures, adaptability in leadership, regulatory frameworks, and the importance of continuous learning and the unlearning outdated practices.

2.8. Synthesis of the Studies

2.8.1. Methodological Overview

The studies reviewed on SEZs in South Africa have been mainly qualitative case study approaches, although a few studies combined mixed-methods approaches to take a helicopter perspective. April (2016) and Boniface (2015) employed a qualitative approach in investigating local governance and preconditions for the success of the SEZ, with concentration on the role that leadership can play in overcoming regulatory and infrastructural bottlenecks. Qumba (2023), on the other hand, adopted a legal framework analysis, examining SEZs from a legislative and policy perspective to evaluate leadership within the context of South Africa’s legal environment. Botha (2023) took a spatial planning approach, analysing the interplay between SEZs and urban development in South Africa, while Chauke (2022) provided a more comprehensive analysis by combining both qualitative and quantitative data, drawing on interviews with SEZ managers and government officials to assess leadership challenges in the Gauteng province.

2.8.2. Key Variables and Outcomes

From these, several variables arise such as strategic foresight, governance structures, regulatory framework, leadership adaptability, and continuous learning. These have been consistently linked to the performance of SEZs from province to province in South Africa. April (2016) and Boniface (2015) emphasise a need for strategic foresight, especially in anticipating and addressing those regulatory and infrastructural hitches. Their findings verify the success of such SEZs, which effectively engage the governance structures and work cooperatively with local government in contributing towards the growth and attraction of FDI in most developing nations (Nel and Rogerson 2013; Qumba 2022).

Governance structures are another key variable. According to Qumba (2022), weak governance frameworks have kept most of the SEZs in South Africa ineffective and unable to operate big projects and attract meaningful FDI. Boniface (2015) and Thompson (2019) note that poor coordination between national and local governments usually exacerbates these problems. Other regions, including those of Coega, have witnessed poor operation of complicated regulatory requirements which have resulted in the delaying of projects coupled with a loss of investor confidence. Conversely, a superior governance framework adopted by regions such as Gauteng keeps compelling in superior performance in SEZs (Botha 2023; Nel and Rogerson 2013).

Leadership adaptability is another crucial factor. Such adaptability of behaviour towards innovation from the leadership of SEZs also better equips them to respond to economic shifts, market volatility, and political instability. Botha (2023) also identifies adaptability as an important characteristic, especially in the Gauteng province because of its volatile economic conditions. This corroborates the views of Mhlobiso (2022) in indicating that continuous learning and unlearning by leaders in SEZs are cardinal in the innovation and long-term success of the zone.

2.8.3. Consistencies Across Studies

Across the reviewed studies, one of the most consistent findings is the importance of strong governance structures in SEZ leadership. Poor governance frameworks are frequently cited as a major barrier to SEZ success in South Africa. April (2016) and Boniface (2015) both emphasise the need for more effective governance systems and better collaboration between national and local authorities to facilitate smoother SEZ operations. Qumba (2022) concurs, noting that SEZ leaders need to be proficient in navigating complex governance systems to secure the necessary political and regulatory support for their projects (Chinguno 2011).

Another consistent finding is the importance of strategic foresight. SEZ leaders who engage in forward-looking planning and proactively address potential challenges tend to perform better in terms of attracting FDI and fostering economic growth. April (2016) and Chauke (2022) both show that leaders who anticipate regulatory changes and market trends are better positioned to integrate their SEZs into global value chains, thereby enhancing their competitiveness on the international stage (Nel and Rogerson 2013; Qumba 2022).

The need for continuous learning is another common theme across the studies. Both Boniface (2015) and Botha (2023) highlight that SEZ leaders must remain open to new ideas and be willing to adapt to shifting economic conditions. This capacity for continuous learning is especially important in South Africa, where the economic landscape is rapidly evolving due to global trade dynamics and shifts in government policy (Mhlobiso 2022).

2.8.4. Divergences Across Studies

Despite these consistencies, some divergences are noted in the leadership challenges that SEZs have been subjected to in different regions of South Africa. For example, Chauke (2022) observes that SEZs based in Gauteng encounter unique challenges due to the volatile economic conditions prevalent in the province, which demand a higher level of adaptability from their leadership. In contrast, April (2016) and Boniface (2015) looked at SEZs based on areas where regulatory and infrastructural challenges are felt more strongly. These studies imply that SEZ leaders in areas other than Gauteng are more concerned with overcoming the barriers of governance and infrastructure rather than responding to the volatility of markets (Botha 2023).

The role of local government in the leadership of an SEZ also differs in various studies. April (2016) and Qumba (2022) emphasize the necessity of collaboration between the leaders of an SEZ and local government officials, while such joint efforts become especially vital in policy obstacles and finding the support of local government in infrastructural development. However, Boniface (2015) identifies a scenario in certain regions where the role of local government functionaries is almost minimal in the SEZ leadership; in such a situation, the leadership of an SEZ must take national government support to surmount bureaucratic obstacles (Nel and Rogerson 2013).

2.8.5. Strength of Evidence

The general strength of evidence across the studies is robust, incorporating rigorous methodologies with detailed analyses. This is further enforced by the qualitative interviews that the team conducted with SEZ leaders, government officials, and other stakeholders to ensure that the findings are well-grounded in the realities of SEZ management in South Africa. However, the geographical scope of the studies is somewhat limited. While a lot of the papers focus on Gauteng-based SEZs, Coega, and East London, fewer papers have looked at the Western Cape or Kwa-Zulu-Natal. High geographical concentration may limit its generalisability to other parts of the country (Botha 2023; Thompson 2019).

Moreover, other limitations include that the studies should have been longitudinal because most research only captures a snapshot of the leadership competencies at any one time in an SEZ. This presents difficulties in assessing long-term or even short-term effects created by specific competency sets on SEZ performances. It is not clear whether these competencies are adequate to guarantee long-term sustainability, although studies such as those by April (2016) and Chauke (2022) have indicated that strategic foresight and governance structures are recognised as vital for an SEZ’s success.

3. Findings

While the systematic review included 30 eligible studies, only 13 were presented in Table 1 and Table 2. This selection was necessitated by word count and space limitations, requiring a focused representation of key findings most relevant to the research objectives. The remaining studies, while not included in the tables, were integral to the thematic synthesis and contributed to the broader narrative discussion, ensuring their insights were reflected in the overall analysis of leadership competencies and practices within SEZs. (see

Table 3. Leadership competencies identified across studies and reports.

Leadership Competencies	Studies and Reports
Strategic Vision and Policy Alignment	Chinguno (2011); Botha (2023); “How Can Africa Ensure Success for SEZs?” (2023); Buba and Wong (2017)
Stakeholder Engagement	City of Tshwane (2021); “Leveraging Special Economic Zones for Growth” (2023); “Chinese SEZ Lessons for Africa” (2019)
Adaptability and Innovation	Saggers (2015); Nel and Rogerson (2013); “Industrial Cluster Policies in Vietnam” (2020); “Korean SEZ Lessons” (2016)
Sustainability and Long-Term Planning	Botha (2023); Zeng (2015); “Chinese SEZ Lessons for Africa” (2019); “Leveraging Special Economic Zones for Growth” (2023)

Source: Authors illustration.

and

Table 4. Practices that SEZ leaders had to unlearn for successful governance and operation.

Unlearning Practices	Studies and Reports
Bureaucratic Inflexibility	Chinguno (2011); Botha (2023); “How Can Africa Ensure Success for SEZs?” (2023)
Outdated Regulatory Approaches	City of Tshwane (2021); Zeng (2015); “Chinese SEZ Lessons for Africa” (2019); “Industrial Cluster Policies in Vietnam” (2020)
Lack of Sustainability Focus	Saggers (2015); Botha (2023); “Leveraging Special Economic Zones for Growth” (2023); “Korean SEZ Lessons” (2016)

Source: Author illustration.

below)

3.1. Leadership Competencies in SEZs

Leadership in Special Economic Zones (SEZs) globally requires strategic foresight, adaptability, and collaborative governance to achieve long-term growth and global integration. South Africa’s SEZs, such as Coega and Dube TradePort, have demonstrated that effective leadership hinges on aligning SEZ objectives with national development strategies, including industrialization and export growth, while addressing the specific needs of stakeholders (Botha 2023). Leaders in these zones must anticipate global economic shifts and adjust strategies to maintain competitiveness in rapidly changing markets (Nel and Rogerson 2013). Similarly, Vietnam’s SEZs have excelled by integrating export-oriented policies with national economic objectives, offering valuable insights for South Africa. For example, the Saigon Hi-Tech Park demonstrates the impact of leadership in fostering technology-driven growth through strategic alignment. South Korea’s Masan Free Export Zone further underscores the importance of leadership in policy alignment and industrial innovation to attract investment and bolster competitiveness (Chen 2019).

Another critical competency in SEZ leadership is stakeholder engagement and collaborative leadership. SEZs function within intricate networks involving government agencies, private investors, and local communities. Leaders must foster productive partnerships that enable inclusive growth. The Tshwane Automotive SEZ (TASEZ) exemplifies this competency by successfully mediating between international automotive investors and local suppliers, thereby creating employment opportunities and boosting economic output (City of Tshwane 2021). Similarly, in South Korea, leadership in the Incheon Free Economic Zone emphasized collaboration between stakeholders, ensuring its success as a global business hub (Chen 2019). As Zeng (2015) observes, stakeholder collaboration is a hallmark of globally successful SEZs, enabling shared ownership of objectives and sustainable development.

Adaptability and innovation are pivotal leadership competencies within Special Economic Zones (SEZs), enabling leaders to respond effectively to the dynamic nature of global markets and rapid technological advancements. Leaders must adopt a proactive approach while remaining flexible to navigate unforeseen challenges. In South Africa, SEZ leaders have demonstrated this adaptability by transitioning from traditional, labour-intensive industries to more modern, technology-driven sectors. For example, Saggers (2015) highlights how the Coega SEZ successfully shifted its focus to renewable energy production and high-tech manufacturing, reflecting leadership’s foresight in identifying and capitalizing on emerging growth sectors. Similarly, Nel and Rogerson (2013) emphasize that adaptability in leadership includes the ability to embrace innovative governance models, such as public–private partnerships, which have been critical in addressing infrastructural and operational challenges.

Internationally, the SEZs in South Korea and Vietnam offer additional insights into adaptive leadership practices. According to Tien and Nuong (2020) Vietnamese SEZ leaders foster innovation by promoting high-tech industries, such as electronics and renewable energy, supported by comprehensive infrastructural development. South Korea’s SEZs, as explored by the Buba and Wong (2017), demonstrate a similar trajectory, where adaptability has been essential in integrating global technological advancements with local economic policies. These examples underline that adaptability and innovation are not only critical for maintaining competitiveness but also for transforming SEZs into hubs of sustainable and inclusive growth.

3.2. Learning and Unlearning Practices

The continuous evolution of SEZs necessitates not only learning new competencies but also unlearning outdated practices that hinder growth. South Korea’s SEZs, for instance, transitioned from labor-intensive industries to high-tech manufacturing, demonstrating the importance of adaptability in leadership (Chen 2019). Similarly, Vietnam’s leaders have streamlined bureaucratic processes, making their SEZs more investor-friendly while focusing on sustainable economic development. These international examples resonate with the reforms in South Africa, where SEZs like Coega and Richards Bay have adopted the “one-stop-shop” administrative model to reduce bureaucratic inefficiencies and attract foreign direct investment (FDI) (Nel and Rogerson 2013).

The continuous evolution of SEZs requires not only the development of new competencies but also the unlearning of outdated practices that hinder growth. A key unlearning practice observed in South African SEZs is the shift away from bureaucratic inflexibility. Historically, SEZs have been hampered by the rigid and often slow-moving nature of government bureaucracy, which stifles innovation and discourages foreign investment. According to Chinguno (2011), one of the primary reasons for the slow growth of South African SEZs in their early stages was the inability of leaders to adapt bureaucratic processes to the needs of international investors. However, recent reforms in SEZ governance, particularly the adoption of the “one-stop-shop” model in zones like Coega and Richards Bay, have significantly reduced bureaucratic bottlenecks, making these zones more attractive to foreign direct investment (FDI) (Nel and Rogerson 2013). This shift towards a more flexible and investor-friendly administrative framework has been a crucial factor in the revitalization of South African SEZs.

Another critical unlearning practice is abandoning outdated regulatory approaches that previously prioritised short-term economic gains over long-term sustainability. SEZ leaders have had to move away from policies that focused solely on attracting investment through tax incentives and low labour costs without considering the broader implications for local economic development and environmental sustainability. Zeng (2015) notes that many early SEZs in developing countries, including South Africa, were designed with a narrow focus on immediate financial returns, often at the expense of long-term economic stability and environmental health. However, as Botha (2023) argues, the modern SEZ must be built on sustainability and inclusive growth principles, which require a fundamental rethinking of traditional regulatory frameworks. By unlearning these outdated approaches, SEZ leaders have been able to implement more holistic strategies that not only attract investment but also promote the development of local industries and environmental stewardship.

Finally, leaders in South African SEZs have embraced learning from global best practices to drive innovation and growth. The success of SEZs in countries such as China has provided valuable lessons for South African leaders, particularly regarding infrastructure development, investor incentives, and technological innovation (Zeng 2015). By studying the Chinese model, SEZ leaders in South Africa have learned the importance of creating an enabling environment for high-tech industries and ensuring that local industries benefit from technology transfer and skills development. This has been particularly evident in the Tshwane Automotive SEZ, where leadership has successfully integrated global automotive manufacturing practices with local production capabilities, ensuring South Africa remains competitive in the global automotive value chain (Tshwane 2021). This learning process from global examples has been instrumental in transforming South Africa’s SEZs from isolated industrial enclaves into integrated hubs of innovation and economic growth.

Leadership in SEZs involves a complex interplay of competencies and practices that must be continuously refined and adapted to meet the challenges of the modern global economy. Leaders must possess the strategic vision, adaptability, and collaborative skills necessary to drive growth while engaging in ongoing learning and unlearning processes to ensure that their SEZs remain competitive and sustainable in the long term.

4. Discussion

This systematic review explored the core leadership competencies for successful and effective SEZs in South Africa. The paper further explored learning and unlearning practices that significantly affect the development of leadership effectiveness in SEZs. The key findings underlined several competencies, which include strategic vision, stakeholder engagement, and adaptability, among other skills crucial in the alignment of the objectives of SEZ with national development strategies. They also play a critical role in fostering public–private partnerships and responding to changing global economic fortunes. Findings also revealed that what is equally significant is the need for the unlearning of bureaucratic rigidities and outmoded regulatory practices acting at the cost of growth by SEZ leaders. The paper points to an urgent need to replace such practices with more flexible, investor-friendly methods of enhancing these areas’ sustainability and innovation prospects. The present study argues that adaptive and visionary leadership has great potential to bring about transformational changes in SEZs for their effective work in South Africa.

4.1. Strategic Vision and Policy Alignment

One of the central competencies identified in this review is the need for strategic vision and policy alignment. The findings revealed that SEZ leaders need to align the operations of their zones with national economic and industrial development strategies. There is also a need to position SEZs to respond to changes and global economic shifts and opportunities (Botha 2023; Chinguno 2011). A strategic vision gives the possibility for SEZs to transcend mere short-term objectives and build the foundation for long-term sustained economic growth (Nel and Rogerson 2013; Thompson 2019). In South Africa, SEZs such as Coega and Dube TradePort have benefited from leadership that is forward-thinking and capable of anticipating global shifts in industries such as manufacturing, renewable energy, and advanced technology (Botha 2023). Such strategic foresight has served to create an even more enduring economic impact well beyond their immediate geographic boundaries.

Strategic vision also encompasses sound policy coordination with national goals. The leadership within the South African SEZ has demonstrated how the alignment of the objectives by SEZs and national policies on industrialisation, employment generation, and export growth creates a synergy to promote investment for larger economic benefits (Nel and Rogerson 2013). This paper suggests that leadership in SEZs must, therefore, not only aim at local objectives but also ensure such objectives are in tune with the wider national economic agenda. Such alignment has been critical in ensuring SEZs meaningfully contribute to the country’s economic development while attracting FDI capable of boosting industrial growth.

4.2. Stakeholder Engagement and Collaborative Leadership

Findings from this paper revealed that effectively engaging stakeholders is another important leadership competency for success in SEZs. SEZs exist in a multifunctional ecosystem where the government, private investors, and local communities participate (April 2016). By engaging with stakeholders, a system of shared leadership enables SEZ leaders to elicit trust and cooperation, which are meaningful variables in the long-term success of such zones. According to the Tshwane Automotive SEZ, there is leadership that can facilitate the relationship between local suppliers and international manufacturers (Hartley and Morrow 2021; City of Tshwane 2021). This presents an opportunity for mutual-benefit-increasing economic output while trying to solve local employment needs (Qumba 2023). The competency of stakeholder engagement and collaborative leadership not only helps attract foreign investment, it also ensures that SEZs contribute to socio-economic benefits for the communities around them, making the SEZ more viable and socially responsive.

Moreover, there is a need for continuous stakeholder engagement, and SEZ leadership must participate to ensure competitiveness in a globalised world economy. For instance, Zeng (2015) emphasises that the internationally successful SEZs were founded in China, and they have existed because their leaders prioritised collaborative governance that facilitated public–private partnerships. In South Africa, the SEZ leadership has increasingly adopted this model, and zones like Coega demonstrate that continuous engagement in the interest of both public and private stakeholders will be key to sustained investment and growth. SEZ leaders can make sure their zones stay attractive to investors and, at the same time, contribute value to the local economy by knitting together strong webs of cooperation.

4.3. Adaptability and Innovation

Adaptability is a core competency for SEZ leaders, especially in rapid technological advancements and volatile global markets. Leadership’s ability to swiftly adapt to the new economic realities ensures that the SEZs remain competitive and relevant. According to Saggers (2015), Coega SEZ has moved from traditional industries into high-tech manufacturing and renewable energy, which is indicative of a change supported by adaptive leadership. SEZ leaders must respond to the prevailing market conditions and predict the future, aligning their zones to capitalise on emerging opportunities in areas such as advanced manufacturing and technology.

Innovation plays a critical role in adaptability. SEZ leaders who foster a culture of innovation create an environment conducive to growth and development. The leadership of South Africa’s SEZs has focused on attracting high-tech industries, recognising innovation as key to maintaining competitiveness (Botha 2023). This approach extends to governance itself, where innovative public–private partnership models have proved effective in creating agile and responsive zones that are more appealing to investors (Nel and Rogerson 2013). This paper suggests that SEZs must continuously innovate—from technological aspects to governance structures. They must ensure that they rapidly adapt to changes in the global economic landscape.

4.4. Transformative Practices: Learning, Unlearning

The SEZs leadership must engage in continuous learning and unlearning processes to be invariably effective. One of the most significant challenges SEZs have faced in South Africa is the need to unlearn bureaucratic inflexibility. The processes of traditional bureaucracy have long hamstrung investment in SEZs with slow decision-making and irrelevant delays of many kinds (Chinguno 2011). SEZ leaders must unlearn such practices by embracing governance models that are much more flexible and appealing to investors, thus enabling streamlined administrative processes. The “ one-stop-shop “ model, for instance, introduced to the Coega SEZ, has reduced the inhibitive effects of entry for foreign investors by smoothing decision-making (Nel and Rogerson 2013). This paper suggests that the shift towards greater administrative flexibility is crucial in revitalising SEZs and making them more competitive.

Additionally, SEZ leadership must ‘unlearn’ obsolete regulatory frameworks that narrowly focus on immediate short-term financial benefits without their long-term sustainability. Zeng (2015) observes that most early SEZs in developing countries focused on short-term economic gains through tax incentives and cheap labour costs but generally failed to contribute to sustainable economic development. The leadership of the modern SEZs in South Africa has increasingly come to realize that integrating sustainability in their strategies would go a long way in ensuring SEZs contribute to economic growth while supporting environmental protection (Botha 2023). This shift to sustainable development is instrumental in setting up SEZs as progressive poles of innovation and growth in the long term.

Furthermore, the leadership within SEZs has shown the capacity for learning from global best practices, particularly successes recorded by SEZs operating in China. The Chinese SEZ model focuses on infrastructure development, technology transfer, and innovation. This provides an excellent basis from which the South African SEZs have managed to maximise their comparative-competitive-advantage globally (Zeng 2015). This has, therefore, been a significant learning curve that has transformed the SEZs in South Africa from being mere isolated industrial zones to integrated economic and technological innovation centres (City of Tshwane 2021). This paper argues that SEZ leaders must continue learning from global trends and best practices to ensure their zones remain competitive and sustainable in an increasingly interconnected world.

The findings from this study underline some critical leadership competencies for effective governance in SEZs: strategic vision, stakeholder engagement, adaptability, and learning and unlearning practices. These observations are in close alignment with the international experiences recorded in the existing literature on the transformative role of strategic leadership in the success of SEZs. For instance, Abiola (2023) shows how strategic focus on aligning manufacturing zones with export-oriented policies was beneficial in Nigeria’s SEZs, reinforcing this notion of the importance of policy alignment for sustaining economic growth. Similarly, Alves and Lee (2022) show that knowledge-sharing frameworks in China’s SEZs in Ethiopia and Cambodia allowed local industries to adapt rapidly to evolving global market conditions. These examples also reflect the findings of Botha (2023) that emphasized that strategic foresight and linkage to broader national development agendas are essential in ensuring the success of SEZs in South Africa.

International literature also identifies stakeholder integration and adaptability as the main drivers of effectiveness in SEZs. Ahmed et al. (2020) discuss Pakistan’s SEZ and how adaptive leadership contributed toward sustainable development by way of collaborative governance models. Frick and Rodríguez-Pose (2022) also note that successful SEZs in emerging economies are those with strong linkages between local suppliers and international investors, which is also consistent with the stakeholder engagement practices seen in South Africa’s Tshwane Automotive SEZ. Further, Alhassan (2023) emphasizes that the adaptability and innovativeness of Nigerian SEZs are important ingredients in their transition into green technology and high-value manufacturing, for example. Similarly, Saggers (2015) illustrates how transition is made in the Coega SEZ of South Africa. These examples collectively verify the argument brought forward by the study that leadership with strategic adaptability, along with a focus on innovation and collaboration, creates conditions that will ultimately lead to a competitive and sustainable future for the SEZ.

4.5. Practical Implications

The findings of this study have several practical implications regarding the management of SEZs and policy-making in South Africa. The fact that strategic leadership is emphasised here underpins the leaders at SEZs to align their zones’ objectives with the nation’s economic and industrial strategies. Policymakers must ensure that SEZs contribute to the national development goals, especially industrialisation, employment opportunities, and export promotion. Botha (2023) points out stakeholder relationships, where benefits to the local communities are combined with attracting international investment in the SEZ. Considering the above, SEZ leaders must encourage further partnership and collaboration between the public and private sectors in mutually beneficial partnerships.

Moreover, the emphasis on adaptability and innovation suggests that leaders in the SEZ must be responsive to changes in global markets and technological development. As such, investment in capacity-building programs for leadership competencies will be key to the continuity of South Africa’s SEZs. Finally, incorporating sustainability and environmental governance in SEZ operation reveals the need for policy frameworks on eco-friendly industrial practices that ensure that SEZs can foster long-term economic growth with a finite ecological impact. At this point, Zeng (2015) establishes the potentiality of the operation.

4.6. Limitations of the Study

This systematic review gives significant insight into the leadership competencies necessary to deliver SEZ success. However, one limitation is that relatively few studies focus on South African SEZs’ leadership competencies. Most studies tend to adopt a more holistic approach to investigating broader economic and infrastructural development levels. Little emphasis is thus placed on the dynamics of the pursued leadership. Additionally, most of the selected studies may be biased since some information included could relate to persons directly associated with the chosen SEZs. Therefore, they tend to reveal positive perceptions about leadership practice (Chinguno 2011).

Another limitation is the lack of longitudinal data on how certain leadership practices have impacted and will impact the performance of SEZs over time. This made analysing the long-term impacts that might eventually result from certain leadership decisions very difficult. These limitations provide a roadmap for future research by ideally adopting longitudinal study designs and providing critical analyses of SEZ leadership practices. This would give further insight into how leadership competencies evolve about the success of SEZs over time.

5. Conclusions

This paper explored the core leadership competencies and learning/unlearning practices that could be of importance for the successful management of SEZs in South Africa. The paper argues that SEZ leadership is crucial for providing strategic vision at the national economic policy level, engaging stakeholders, and adapting to changing global financial conditions. Additionally, the study found that unlearning rigid bureaucratic behaviour and outdated regulatory systems is important for developing SEZs.

The research shows that a blend of competencies like strategic vision, stakeholder engagement, and adaptive innovation is critical to attracting foreign investment and securing long-term economic benefits from SEZ leadership. Further, the unlearning of conventional, rigid approaches and the assimilation of new sustainable practices have been vital in transforming SEZs into competitive industrial platforms globally. The findings indicate that SEZ leadership plays a crucial role in ensuring local development by embedding sustainability and social responsibility measures. This paper, therefore, contributes to the literature on how leadership practices directly affect SEZs’ success and provides valuable lessons for policymakers and SEZ managers in their quest to improve the efficiency of these zones.

Notwithstanding the relatively limited number of studies focused specifically on leadership within SEZs, this study offers insight into the strategic importance of leadership for the success of SEZ operations. A logical progression of this study is to examine the longer-term impact of leadership practices on SEZs’ overall performance and sustainability. More broadly, research is also needed to determine how SEZ leadership can adapt to the evolving global economic landscape, particularly in the context of technological advancements and shifting trade patterns.

Gaps and Future Research

Several gaps and inconsistencies are noted in the literature on SEZ leadership in South Africa. The first gap concerns limited research on leadership training and development in the context of SEZ success. While many studies have heavily emphasised competencies such as strategic foresight and adaptability, few, if any, discuss how these competencies are developed or whether formal leadership training programs exist within the SEZ frameworks (Qumba 2022; Thompson 2019). There is also scant attention to gender issues regarding the leadership of the SEZ, with no studies explicitly looking into the role of women or adopting a gender perspective on the differences in leadership style and competencies. This is worth investigating, especially with the increased concern for diversity in gender representation in leadership positions in general. These results could develop into major implications for SEZ management. The leadership should focus on strategic foresight, adaptability, and collaboration with government officials to encourage sustainable growth. However, there is a need to introduce leadership development programs that would provide SEZ leaders with essential competencies required for addressing such complexities in the management of SEZs. Long-term influences can also be studied in the future, focusing on the effect of leadership competencies on the success of SEZs in South Africa. Further, studies will be conducted to see what the effect of gender has on the leadership of SEZs and measure the benefit of formal leadership training. Continuous learning and unlearning by the leadership in SEZs should also be a focus of future studies, given that the economic landscape in the country keeps changing rapidly (Qumba 2022; Botha 2023).