By Mandla Mpangase

Forming a significant partnership in the automotive manufacturing sector, the Tshwane Automotive Special Economic Zone (TASEZ) has signed a memorandum of agreement with NAACAM (the National Association of Automotive Component and Allied Manufacturers).

The key areas of focus are around skills development and training, supply, small medium and micro enterprise (SMME) support, localisation and innovation.

TASEZ CEO Dr Bheka Zulu referred to the signing of the memorandum of agreement as a milestone for Africa’s first automotive city, adding: “This must be a living document.”

The two parties have a synergy that will help transform the automotive manufacturing sector in tangible ways. “This partnership is one that we’ve been speaking about for some time, but I think it’s a really concrete and focused one for us,” said NAACAM CEO Renai Moothilal.

TASEZ was established to promote employment growth and productivity, contributing to South Africa’s socio-economic development and competitiveness, while NAACAM is recognised as the voice of the South African automotive component industry both domestically and internationally.

“NAACAM, as you know, is the mandated voice of auto component,” said the organisation’s CEO Renai Moothilal. NAACAM, as a member-driven organisation, is positioned at the forefront of industry leadership, representation, and stakeholder engagement for automotive component manufacturers.

“We also are excited about the opportunity to partner with yourselves on areas around export market development, township economy revitalisation, and, of course, wider industry events and other engagement platforms,” Moothilal said.

The TASEZ hub accommodates mainly automotive component manufacturers, but not exclusively so. However, most of the tenants in TASEZ belong to NAACAM.

Dr Zulu noted: “This is a great moment because we, as TASEZ, stand for the people; creating jobs, adding economic value, and skills development.”

Dr Zulu pointed to the many strategic partnerships TASEZ has. “We stand for economic growth for Tshwane, for the province and for the region. We stand for economic growth for the country and for the continent.”

As a special economic zone (SEZ), TASEZ is part of the 240 plus SEZs in Africa. “It means we are a continental player.”

TASEZ is also part of the 5 000 plus SEZs across the world.

The SEZ is in a position to open avenues and engagements with different stakeholders from an African footprint. “We are about facilitating trade and investment, and you are a partner that produces components that are needed by the industry, by the continent, by the world,” Dr Zulu noted.

Africa, he added, is a big market. “If you look at the African continent, with its population sitting at 1.3 billion, that’s an area where you can make an impact, because all your components will fit into the livelihoods of people on a daily basis.”

As its Phase 2 rolls out, TASEZ is looking to offer a diversity of appropriate land uses and other economic activities. Of particular importance to TASEZ’s Phase 2 development is supporting black industrialists and small, medium and micro enterprises (SMMEs).

In doing so TASEZ is also focused on developing programmes geared to providing skills for both the needs of the industry and those of the communities surrounding the project.

It is with this in mind that the SEZ has set up a training academy, part of making sure Phase 2 delivers on becoming a centre of excellence for the industry.

“This is our second passion,” Dr Zulu.

On 5 March 2025 the two organisations agreed to collaborate in areas of special interest, with a particular focus on transforming the economy.

The memorandum of agreement covered a wide-range of issues, including:

• Skills development and training in artisan development, for retrenched workers, supporting scare skills training, curriculum development and aligning to work with TVET (Technical and Vocational Education and Training) colleges.
• Business incubation and coaching, particularly for SMMEs.
• SMME development, including shop floor training, value stream mapping, quality certification setup, lean, kaizen and business development.
• Identify development opportunities for future skills and scope the feasibility for implementation of upskilling through research.
• Working together to source funds for skills programmes for SETAs (Sector Education and Training Authorities) and international partners.
• Supporting black industrialists by providing access to a platform used by Tier 1 manufacturers looking for new suppliers and purchasing opportunities.
• Conducting research on localisation initiatives that support the auto manufacturing industry.
• Developing programmes that advance technical knowledge in the space of automotive designs and concept development.
• Supporting the revitalisation of the township economy.
• Supporting trans-sectoral innovations and interventions, such as rail, maritime, and aviation projects.
• Develop initiatives to grow the export market for component manufacturers.
• To work together on events related to automotive and schools’ programmes.

The concept of localisation is of particular importance to TASEZ and NAACAM.

“Not only do we want to see greater traction in reports, but we want to see it unfold with greater component production, especially in a facility such as the one that you manage,” Moothilal said.

“That is why we are so passionate about having government policies and programmes and facilities such as TASEZ, which ultimately supports competitiveness of the whole value chain and then grows localisation.”

Dr Zulu expressed his delight at having a partner that also focuses on innovation.

“Innovation is one of the things we drive. Research and development is a stumbling block for many SMMEs, so we want to come into research and development.”

TASEZ was busy setting up a research chair with this in mind and is working with the Tshwane University of Technology and the CSIR (Council for Scientific and Industrial Research) to do so.

“We want to see innovation, change and global competitiveness,” Dr Zulu said.

“For us, we see our collaboration as something that talks to our long-term impact – the socio-economic impact we are hoping to make here in the city, nationally and internationally,” said Dr Zulu.