TASEZ has much to celebrate as 2024 and Phase 1 draw to a close

By Mandla Mpangase

As 2024 draws to a close the Tshwane Automotive Special Economic Zone has much to celebrate, according to board chair Lionel October.

“This is a project that is a shining example of the three government shareholders doing everything that was asked of them,” he adds.

“When we asked the City of Tshwane for land, they gave us land. When we asked the Department of Trade, Industry and Competition to provide support for the Special Economic Zone’s top structures they did so to the tune of over R2-billion. The Gauteng government also played their role in providing bulk infrastructure, also at a cost of almost R2-billion.”

Their drive and determination saw TASEZ rise from the dusty highveld in 2020 to becoming a fully-functioning, technologically innovative automotive manufacturing hub within two years.

“The development happened in a record time,” October points out.

During the construction phase 5 000 jobs were created, with 40% going to small, medium and micro enterprises in the neighbouring townships of Eersterust, Mamelodi and Nellmapius – “another record achievement”. In addition, a further 3 200 permanent jobs were created.

TASEZ focuses on its priorities of job creation through aggressive infrastructure development, growing small, medium and micro enterprises, inclusion and accelerating economic reforms to unlock investment and growth.

“People ask why government places such an emphasis on the automotive industry,” the chair notes, adding that it is an industry that requires highly skilled workers, and with that comes better wages.

The South African automotive sector is one of the most visible sectors in receiving foreign investments and contributes significantly to the growth of the economy. It is an industry that generates millions both nationally and for the City of Tshwane. The automotive manufacturing industry contributes 4.3% to the annual gross domestic product and provides direct employment for 110 000 people. But it also goes beyond the initial investments provided by the original equipment and component manufactures, but the ongoing generation of money that grows the local economy.

In addition, the automotive manufacturing industry represents the medium technology sector, removing workers from a low wage, unskilled future to the middle income. However, there is now a pressing need to up the ante with the development of new energy vehicles and the rapid progress of technology.

“We need to transition into a high technology, high income economy.”

And TASEZ is well placed to perform that role, with the establishment of a training academy as part of its Phase 2 developments.

“We will have our own campus where we hope to train between one thousand to two thousand young people each year.

“Furthermore, we will be working with the Industrial Development Corporation to create a stream of black industrialists in the automotive manufacturing industry,” October says.

TASEZ is also exploring investment opportunities related to the manufacturing of NEVs.

“It is important that we do so,” October adds. “We have about 10 to 15 years left for petrol vehicles, and we at TASEZ need to be at the centre of the new developments.

“The fact that Gauteng is a major automotive market gives us a competitive advantage.”