On this Mandela Day Dr Bheka Zulu, the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), reflects on the legacy left by Tata Nelson Mandela in building a South Africa that truly reaches its full potential.

Today, 18 July, we make time to reflect on the profound impact Nelson Mandela had on our country, and indeed, the world. His wise words flowed in many directions, sharing his experiences, teaching his philosophies, and touching wide and diverse topics. But none of these words were more important that those regarding the youth of this country.

Speaking at a rededication of a school in the Eastern Cape in 1995, Madiba said: “Our children are the rock on which our future will be built, our greatest asset as a nation. They will be the leaders of our country, the creators of our national wealth, those who care for and protect our people.

“But if they are to take on this great responsibility, the rich potential in every child must be developed into the skills and the knowledge that our society needs. Education is the key to that process. It is also a door which opens from every village and city onto our larger society and indeed onto the whole world.”

It is heartbreaking to look at the challenges facing the youth right now; with low economic growth, high unemployment, and lingering poverty and inequality.

That South Africa’s economy has been constrained is nothing new, with the Reserve Bank’s growth expectations for 2024 and 2025 sitting at 1.2% and 1.3% respectively. These rates are not nearly enough to help the country grow jobs and create business opportunities for small, medium and micro enterprises (SMMEs).

The statistics are harsh, with young South Africans bearing the brunt of these issues. Unemployment among the youth – people between the ages of 15 and 34 – totalled 4.9 million in the first quarter of 2023, according to figures released by Statistics South Africa in May. The youth unemployment rate sits at 46,5%.

According to Statistics South Africa (Stats SA) “South Africa, like many countries globally, grapples with the challenge of youth unemployment. This is supported by statistics indicating a 45,5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32,9% in the first quarter of 2024.”

The automotive industry plays a strategic role in growing South Africa’s economy. In 2021 it contributed 4.3% to South Africa’s GDP, with the export of vehicles and automotive components reaching a record R207.5 billion – equating to 12.5% of South Africa’s total exports.

Becoming globally competitive and transformed

But much more is expected from the sector. The South African Automotive Masterplan’s (SAAM’s) vision is to create “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”.

Targets set include:

• Achieve 1% of global vehicle production by 2035 (an increase from a base of 600 000 units to almost 1.4 million units a year);
• Increase local content from about 40% to 60%;
• Double employment in the value chain from current levels to about 240 000;
• Improve competitiveness;
• Achieve transformation; and
• Improve the value addition rather than production sales value.

It is against this background that TASEZ needs to stand up and play its part in growing the automotive industry alongside helping young South Africans develop the skills and experience they need to gain work in the ever-evolving sector.

To quote Mandela, from a President’s Budget Debate in Parliament in 1996: “Jobs, jobs and jobs are the dividing line in many families between a decent life and a wretched existence. They are, to many, the difference between self-esteem and helplessness.”

Beyond job creation, the establishment of SMMEs across the country is critical; driving growth, providing employment opportunities, and opening new markets.

South Africa sets a great store on the SMME sector as a driver of economic development and growth. In the National Development Plan 2030, SMMEs are identified as having the potential to contribute between 60% to 80% to the country’s gross domestic product growth and employ 90% of the workforce. The NPD, which has set a target of 24 million people in employment by 2030. Of that, 21.6 million people would be in SMMEs.

Youth development is a key component of TASEZ’s business case, with our SEZ helping boost the economies of our neighbouring communities of Eersterust, Mamelodi and Nelmapius, providing job opportunities and training programmes for young South Africans and emerging SMMEs.

TASEZ’s Phase 1 development saw 3 244 permanent jobs in the automotive manufacturing sector created, with a further 5 071 jobs in construction. SMME procurement spend totalled R1.7-billion.

As the SEZ continues to grow, more job will arise, along with SMME procurement opportunities.

In addition, TASEZ is planning to create an automotive incubation programme and focus on skills development in support of Tier 1 and Tier 2 suppliers along with expanding the hub and creating 3 000 new jobs.

What we need to be aware of is that these are not merely numbers and statistics to us – each job created or project supported represents real families and community members living secure lives with dignity and self-respect.

Picking up the baton from Madiba, we know that we have to be daringly ambitious and resolutely committed to contributing our South Africa’s growth, expanding beyond our borders to impacting regional and African development.