Jenny Tennant, Author at Tasez

Gauteng assesses its readiness for a transformed automotive sector

By Mandla Mpangase Gauteng has ambitious plans to turn the province into the automotive hub of Africa. So serious is the intention, that the leading role players in the South African automotive sector gathered in Johannesburg to share insights into what is needed to make that happen. This comes amidst a rapidly evolving global automotive sector, the looming carbon neutral targets for vehicle imports into the European Union by 2035, and the current turmoil surrounding increased tariffs being imposed on goods entering the United States. Addressing the participants at the Automotive Sector Policy Dialogue, Gauteng’s MEC for finance and economic development, Lebogang Maile, emphasised the significance of the sector to the country’s economy. In 2024, the automotive industry contributed 5.2% towards the GDP of the country, with 110 000 direct jobs – 33 154 in the original equipment manufacturers and 81 860 people employed by component manufacturers. Gauteng is home to three original equipment manufacturers, Nissan, Ford, and BMW – all based in the City of Tshwane along with the Tshwane Automotive Special Economic Zone and the Automotive Industry Development Centre. Together, the three OEMs produced 1.8 million vehicles between 2014 and 2023, accounting for 32.8% of South Africa’s vehicle production. “According to the National Association of Automobile Manufacturers of South Africa (Naamsa), Gauteng’s automotive sector is expected to gain momentum, especially with the establishment of the Tshwane Automotive City (TAC), which will serve as an integrated logistics framework focusing on inland ports and manufacturing hubs linked to rail corridors linking Tshwane with strategic ports in South Africa and SADC (the Southern African Development Community),” MEC Maile noted. A different-looking automotive sector Speaking on the shift from internal combustion engines towards new energy vehicles (NEVs), Maile spoke of the urgency required by the automotive sector to adjust its production value chains and technologies to transition towards NEVs to retain and grow its existing markets share. He also identified the challenges the automotive sector faces, including: Gauteng being a landlocked province far from regional seaports, faced with logistical challenges that often lead to expensive transportation costs to reach global markets; Congestion at South Africa’s ports has a negative impact as the automotive sector relies on international trade in terms of sourcing manufacturing components and shipping the final product; Inconsistent electricity supply; A lack of support for Tier 2 and Tier 3 manufacturers; OEMs battling technological challenges that come with transitioning to NEVs, which require high technical and technological skills; The recent 30% tariffs imposed by the United States on South African exports poses a risk to the sector, puts pressure on the local OEMs, and poses a risk to jobs; and Transformation is happening at a snail’s pace, which stifles the growth of township businesses. What this all means, Maile told the participants, is that a different approach was needed to support and develop the sector. “There is a need for an inclusive approach towards transforming the sector.” While the province had made progress in terms of establishing the AIDC supplier park and the development of TASEZ, much more needed to be done to make the sector competitive, MEC Maile said. The dialogue was held to assess the province’s readiness for the NEV transition; to identify the infrastructure investment requirements for the transition; gather information into the support requirements for Tier 1, Tier 2, and Tier 3 component manufacturers; highlight skills requirements, funding collaborations and partnerships to support the transition; and understand the implication of US tariffs and potential new markets for South African OEMs. In line with the discussion on NEVs, the province will host the inaugural NEV Summit in October, where industry players will share further knowledge on the sector. For further information on the NEV Summit visit the AIDC website.

SEZs among South Africa’s most powerful engines of growth

News / By Jenny Tennant

The Tshwane Automotive Special Economic Zone CFO Rebecca Hlabatau argues that leadership in SEZs is about more than managing finances. It is about driving industrialisation, creating sustainable jobs, and deliberately breaking down barriers to equity — especially for women in a male-dominated economy. (This article was first published in the Sunday Times Business Report on 31 August 2025.) August in South Africa is not just another month in the calendar – it is Women’s Month, a reminder of the sacrifices of 1956 and the unfinished work of building a society where women’s potential is not constrained by bias, barriers, or old boys’ clubs. For those of us in leadership, it is also a moment of reflection. What does it mean to be a woman leading in sectors that were never designed with us in mind? What does it mean to not only break ceilings for yourself, but to pull others up through the cracks? In South Africa’s industrial policy landscape, Special Economic Zones (SEZs) are not glamorous. They do not trend on social media and they rarely dominate headlines. Yet, increasingly, they are proving to be among government’s most powerful tools to drive industrialisation, attract investment, and create jobs. At the Tshwane Automotive Special Economic Zone (TASEZ), my role as CFO is often misunderstood as a purely financial one. But sustainability in an SEZ is not about spreadsheets; it is about shaping a platform where jobs multiply, investors thrive, and communities escape poverty. Each job created transforms not only an individual life, but an entire family. That multiplier effect is powerful – and it is the real bottom line. My choice to serve in the public sector, even when private-sector opportunities were abundant, was deliberate. Too often, the public sector is seen as a fallback, a place where talent lands when it cannot “make it” in corporate South Africa. That mindset must change. State-owned enterprises like TASEZ deserve the best skills in the market, professionals who understand that public purpose and financial discipline are not contradictions. But this is also where Women’s Month hits home: the road has never been straight for women leaders. Infrastructure, industrialisation, and construction remain male-dominated environments. In my career, I have often had to prove myself twice over. Reports and strategies had to be watertight – not because they were not good enough, but because credibility was not granted as easily to women. This year’s Women’s Month theme emphasises the importance of women’s participation in leadership and the economy: “Building resilient economies for all”. Progress is being made, but it is too slow. Which is why equity cannot be left to chance, it requires deliberate action. Statistics South Africa’s latest Quarterly Labour Force Survey for the second quarter of 2025 reveals the stark disparities in the country’s labour market. In a press release dated 12 August 2025, StatsSA noted: “South Africa’s national unemployment rate stands at 33,2%, but the figures show that women continue to carry a heavier share of this burden. The unemployment rate for women was 35,9%, compared to 31,0% for men, a gap of 4,9 percentage points.” The differences reflect persistent gender imbalances in unemployment, labour force participation, and the sectors in which men and women are employed. And this is carried across the education levels. “In the second quarter of 2025, the official unemployment rate for graduates stood at 12,2%, marking a 0,5 percentage point increase from the previous quarter. While this rate is lower than the national average, a closer look reveals a persistent gender gap among the most educated. Female graduates faced an unemployment rate of 15,0%, compared to 8,9% for their male counterparts, a difference of 6,1 percentage points.” The disparity is even more pronounced among those with lower educational qualifications. “Women without a matric certificate recorded an unemployment rate of 42,8%, compared to 37,0% for men. This 5,8 percentage points difference highlights the heightened vulnerability of women with limited schooling, who face both educational and gender-based barriers to employment,” StatsSA notes. “For individuals with only a matric certificate, the gender gap widens further. Unemployment among women in this group was 39,3%, while the rate for men was 31,7%. This 7,6 percentage points gap is the widest across all education levels.” Companies must actively hire women and black professionals in sectors where they have been excluded. This is not ticking boxes; it is dismantling barriers that should never have existed. Recruitment alone, though, is not enough. Lifting others is central to leadership. Mentorship, coaching, and exposure are critical. Today’s interns must become tomorrow’s executives — and that only happens if leaders pull them up instead of climbing over them. I am where I am because someone once gave me a chance. Now, it is my duty to do the same for others. Success should never be measured by being “the first” or “the only”. Real success is measured by how many others rise with you. Women’s Month is a time to remember that leadership is not a title. It is a responsibility. It is about living the values we speak about creating spaces where words become action, and opportunities become transformation. Industrialisation, empowerment, and equity are not abstract ideals. They are urgent imperatives, and SEZs like TASEZ are where these ideals can be tested in real time. Because in the end, the real measure of leadership is not how high you climb, but how many people – especially women – rise with you.

TASEZ celebrates Women’s Month with empowering event

News / By Jenny Tennant

As Women’s Month draws to a close, the Tshwane Automotive Special Economic Zone (TASEZ) has begun the countdown to its highly anticipated Women’s Month event on Friday, 29 August 2025. This year’s event, taking place under the theme “Defining your complete self”, promises to be a vibrant celebration of women’s contributions to South Africa’s industrial and economic landscape. The theme encapsulates the essence of the day, a call for women to embrace every facet of who they are. It is about recognising authenticity while creating space for softness and independence. Adding to the magic, participants will be captivated by the words of a featured poet, whose performance will bring the theme to life through the power of storytelling. This gathering is not just a celebration of women’s accomplishments but an acknowledgment of their wholeness as individuals. The event will bring together women from diverse backgrounds, including leaders from the special economic zones (SEZs) and the manufacturing sector, to share their experiences of being a woman in an economic environment that is often perceived as “a man’s world”. The theme reflects TASEZ’s commitment to empowering women to embrace their full potential, professionally, personally, and socially, while inspiring the next generation of leaders to break barriers and redefine success. The Women of the SEZs initiative: A catalyst for change Since its inception in 2023, the Women of the SEZs initiative, launched by TASEZ, has been a transformative platform, helping amplify the voices, contributions, and aspirations of women within South Africa’s SEZs. By fostering an inclusive environment, TASEZ is ensuring that women are not only participants but also drivers of innovation and progress in South Africa’s industrial sector. Inspiring conversations and insights The 2025 Women’s Month event will feature a diverse panel of women who will share their journeys and insights on how women can define and embrace their “complete selves” in the context of South Africa’s evolving economy. Participants in the event can expect thought-provoking stories of overcoming challenges, balancing personal and professional growth, and creating pathways for future generations. “We are thrilled to host this event as a culmination of Women’s Month,” said TASEZ CFO Rebecca Hlabatau. “Our goal is to celebrate the resilience and achievements of women while encouraging them to embrace their multifaceted identities and lead with confidence.” A commitment to empowerment TASEZ’s dedication to women’s empowerment extends beyond this event. Through ongoing initiatives, TASEZ continues to create opportunities for women to thrive in traditionally male-dominated industries. By providing access to job opportunities, training, and mentorship, TASEZ is helping women build sustainable careers and take on roles that shape the future of South Africa’s economy. And this Women’s Month event will be marked with style, substance, creativity, and celebration, a fitting tribute to the women who shape our present and inspire our future.

SA’s auto industry is the backbone of the country’s economic growth

News / By Jenny Tennant

By Mandla Mpangase The automotive industry holds significant potential for shared prosperity through targeted industrial development, according to South Africa’s Deputy President Paul Mashatile. He was delivering the key note address on 14 August 2025 at this year’s Naacam Show currently taking place in Gqeberha, in the Eastern Cape. The automotive sector is one of South Africa’s most strategically important and internationally linked industries, accounting for 22.6% of manufacturing output and 5.2% of the country’s gross domestic product. Although the sector is a success story of industrial policy, it is important to increase employment in the sector. Currently 115 000 people are employed in the sector, with more than 80 000 of those working in component manufacturing. The deputy president noted that the industry is export-oriented, globally competitive, and plays a vital role in regional and national industrial development. In 2024, the component sector exported R62.5 billion of components. A sector under strain “We must never allow the loss of these gains because of external and internal pressures. I say this with concern because the employment levels in the sector have been under strain due to ongoing economic pressures and reduced production volumes.” Naacam, the National Association of Automotive Component and Allied Manufacturers, recorded 12 company closures over the past two years, affecting the livelihoods of 4 000 individuals. “What is of more concern are the recently released figures by Statistics South Africa showing that the country’s unemployment rate has climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter,” Mashatile said. “This latest figure is a clear indication that the nation’s unemployment crisis remains an urgent concern.” More effort is needed to combat unemployment, including improving education and skills to match labour market demands, promoting entrepreneurship and small enterprises, and investing in public employment programmes to generate jobs. TASEZ is currently attending Naacam to share knowledge and monitor the latest developments and trends in the sector. The deputy president noted that the government supports the automotive industry through a combination of investment incentives, improved policy frameworks, and infrastructure development, including: the Automotive Investment Scheme (AIS), which offers non-taxable cash grants to encourage investment in new models and components; tariffs and incentives available to local producers, aimed at boosting employment and strengthenong the automotive value chain; and Automotive Industry Development Centre (AIDC), which plays a crucial role in skills development, enterprise development, and managing incentive programmes. Guiding the sector is the South African Automotive Master Plan 2035 (SAAM), which aims to build a globally competitive and transformed industry. SAAM goals include growing vehicle production to 1% of global output (1.4 million vehicles), increasing local content to 60%, doubling employment to 224,000 employees, and deepening transformation and value addition, with 25% Black-owned involvement at the Tier 2 and Tier 3 component manufacturer level. The Automotive Production Development Programme Phase 2 is the policy programme intended to support and enable the realisation of the objectives of SAAM. “We recognise the industry’s significant role and see it as the backbone of our economic growth, promoting industrial development and encouraging innovation,” Mashatile said. “I am of the view that by increasing investment in research and development, we can use the power of technology to improve efficiency and sustainability, ensuring that our products and services stay competitive in the global market.” New opportunities for growth could be unlocked through nurturing a culture of collaboration and partnership among manufacturers, suppliers, and stakeholders, he added. Support for the African Continental Free Trade Area “This sector, not just in South Africa but in Africa as a whole, has emerged as a critical area of investment, providing substantial prospects for growth and development.” In this context, it was important to acknowledge the significance of the African Continental Free Trade Area (AfCFTA) agreement on economic integration and industrialisation, which is projected to draw additional international investment into the African automotive industry. “The agreement has the potential to significantly boost the automotive industry across the continent by reducing trade barriers, fostering regional value chains, and harmonising regulations. This could lead to increased production, lower costs for consumers, and a more competitive market.” The implementation of the agreement has the potential to lessen the dependency of African countries on developing countries for automotive components and completed vehicles by promoting regional value chains and increasing local production. “Creating a single continental market for goods and services could potentially lead to increased trade, investment, and job creation within Africa.” However, Mashatile added that this does not suggest that South Africa does not need other nations as trading partners. “We believe in diversifying our investments and engaging in trade with several partners.” Mashatile explained that the Cabinet has adopted a new trade proposal to the United States that aims not just to settle the 30% tariff but also has ramifications for over 130 other trading partners who may reroute products into the South African market. “I must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House. “It is probable that South African suppliers who provide support to domestic original equipment manufacturers that export automobiles or integrated systems to the United States would experience volume cutbacks. This will put pressure on production planning, employment decisions, and investment choices.” The tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa’s automotive manufacturing ecosystem. “However, South Africa remains resilient and steadfast in its efforts to grow and protect our economy. We will continue engaging with the USA to identify practical solutions.” Attracting significant investment and driving innovation, could strengthen South Africa’s manufacturing capabilities and global competitiveness. Proactive transformation of the sector “We can increase localisation with existing and potential new original equipment manufacturer entrants to market, achieving a 5% growth in South Africa’s localisation rate, potentially resulting in R30-billion in new local procurement.” In addition, research has indicated that South Africa is well positioned to localise high-value new energy

SMMEs are levers of innovation-led industrialisation that can diversify and decarbonise SA’s economy

News / By Jenny Tennant

By Mandla Mpangase The 2025 Naacam Show is taking place at a time when the automotive sector is undergoing transformation that is driven by technology and decarbonisation. “We meet as the global economy faces strong headwinds brought about by new shifts towards unilateralism and protectionism,” the Minister of Small Business Development, Stella Ndabeni, said in her address on the second day of the show, 14 August 2025. “We know the US tariffs will impact the market competitiveness of OEMs, including those located in (the Eastern Cape).” This year the Naacam Show is taking place in Gqeberha in the Eastern Cape, displaying the capabilities within South Africa’s leading manufacturing sector. TASEZ too is attending the Naacam Show, sharing information about the special economic zone. Emphasising the tone set the day before by the Minister of Trade, Industry and Competition, Parks Tau, Ndabeni emphasised that failure to position the country strategically and reprioritise aspects of the South African Automotive Master Plan, could see us falling behind. “This is something all of us need to galvanise around,” she said. “We know we need to tweak our model. Rebates on imports have improved the competitiveness of OEMs but has not enabled the development of local supplier capabilities. “We haven’t built the necessary capabilities in design and innovation, and in specialised components.” The Naacam Show, the minister noted, is more than an industry exhibition. It is a platform to benchmark where South Africa stands as a supplier of components, and provides insights into what the government, original equipment manufacturers, and representative bodies like Naacam need to do to position themselves in a rapidly changing industry. “The overall competitiveness of the South African automotive sector depends on the extent to which we can master vertical integration across the value chain,” Minister Ndabeni added. “Shared economic infrastructure like automotive supplier parks and special economic zones have played an enabling role in promoting such integration, as have industry clusters.” Like the Tshwane Special Economic Zone (TASEZ), the Department of Small Business Development is committed to the inclusion of small, medium, and micro enterprises (SMMEs), including the automotive sector. “The reality is: without deep transformation, the sector will not meet the inclusive growth targets set out in the South African Automotive Master Plan 2035 (SAAM 2035,” Ndabeni said. With its focus on developing SMMEs, the Department of Small Business Development, together with the Automotive Industry Development Centre (AIDC) and the International Labour Organisation (ILO), completed a detailed feasibility study for the establishment of a Gauteng-based automotive cluster. “The study confirmed that such a cluster is not only feasible, but strategically necessary to address coordination gaps, improve supplier readiness and deepen SME integration in the value chain, especially the production of high-quality components by SMEs.” In addition, department, through the Small Enterprise Development and Finance Agency is leveraging strategic partnerships to support SMMEs through: The Automotive Industry Transformation Fund, which will support 20 black-owned SMMEs through funding, training, development initiatives, and market access programmes. Developing a dedicated incubator with TASEZ to deliver joint infrastructure, skills, and market access programmes. AIDC Incubators: We continue to support incubation hubs to build enterprise capacity and readiness. “These partnerships are grounded in co-investment, shared learning and the common goal of expanding opportunities for small businesses in the automotive space.” The Department of Small Business Development also has targeted financial tools to help SMMEs, such as: The Small Enterprise Manufacturing Support Programme – offering cost sharing grants up to R15-million for production upgrades and localisation. The Supplier Development and Asset Assist Programmes – providing grants and equipment to enable small suppliers to meet industry standards. The Small Enterprise Development Agency Technology Programme – funding testing, quality systems, and productivity tools needed for industry alignment. The minister pointed out that in her 2025/2926 budget vote speech she announced that the department would support one million SMMEs. “I announced the establishment of a development fund, capitalised at R2.95-billion over the medium-term expenditure framework (MTEF) targeting new entrants including micro and informal businesses,” Ndabeni said, encouraging micro enterprises in the automotive after-care and services market to apply. Announced at the same time, were the establishment of a commercial fund for more high growth SMMEs capitalised at just under R1-billion over the MTEF, a women’s fund capitalised at R300-million, and a youth fund also capitalised at R300-million. Ndabeni also spoke about South Africa’s Presidency of the G20 this year, noting that the Department of Small Business Development would leverage South Africa’s role to position SMMEs and startups as critical levers of innovation-led industrialisation that diversifies and decarbonises the economy. “This is especially relevant in sectors like automotive manufacturing, where innovation, localisation and inclusive industrialisation go hand in hand. You cannot do one without the other, and we must build a coherent eco-system to enable such integration.” The minister concluded her address emphasising the country’s commitment to ensuring SMMEs are at the forefront of the industry, as innovators and entrepreneurs, as small producers, as solution providers and as global players.

SA’s automotive sector can model African industrial resilience, says Minister

News / By Jenny Tennant

By Mandla Mpangase The annual Naacam Show takes place at a defining moment for the South African automotive sector, which is facing intersecting challenges that demand collaboration. With these words Minister of Trade, Industry and Competition, Parks Tau, began his assessment of the automotive manufacturing sector in a key note address to the Naacam audience in Gqeberha on 13 August 2025. This year’s show brings together automotive component manufacturers, public and private sector stakeholders, and service providers to foster collaboration, with the aim of galvanising the industry around the goals outlined in the South African Automotive Master Plan 2035. The automotive manufacturing sector is the cornerstone of South Africa’s manufacturing economy, contributing 5.2% to the country’s gross domestic product and 22.6% of the country’s industrial output. Despite these significant numbers, the industry faces several interconnected challenges, the minister noted. “Yet within these challenges lie transformative opportunities to redefine and leverage our global competitiveness.” The minister went on to urge all stakeholders to unify their actions across three pillars: on localisation, innovation, and inclusive transformation. Urgent challenges Although the industry employs 115 000 South Africans directly, with over 80 000 in component manufacturing alone, it faces the stark reality that domestic sales of locally produced vehicles plummeted to 515 850 units in 2024, far below the South Africa Automotive Master Plan 2035 (SAAM) target of 784 509. In addition, Minister Tau noted: “Importantly, 64% of vehicles sold here are imports, eroding local production scales.” Local content remains stagnant at 39%, well short of the 60% target, he said, adding this was at a time when United States tariffs are impacting significantly on the country’s R28.7-billion automotive exports. These pressures have triggered 12 company closures and over 4 000 job losses in two years. The erosion of industrial value of the sector is exemplified by recent suspensions at Mercedes-Benz and other original equipment manufacturers. The path forward: Strategic imperatives “Localisation is not merely policy compliance, it is existential,” Minister Tau said. “A 5% increase in local content would unlock R30-billion in new procurement, dwarfing the R4.4-billion US export market.” However, to achieve this, “we must act collectively to address some of the bottlenecks to growth”. With this in mind, the Department of Trade, Industry and Competition is reviewing the Automotive Production Development Programme (ADPD) as a comprehensive way of responding to the challenges the sector is facing, but also to ensure regular growth in the sector meets the goals of the SAAM. Some of these reforms include the incentive structure and shifting duty credits to reward manufacturing instead of assembly credits. “Our critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value new energy vehicle components like fuel cells and batteries.” Digitisation, decarbonisation, and diversification global competitiveness hinges on embracing disruption “At the dtic, we have been engaged on a path of developing a new industrial policy which focuses on decarbonisation, digitisation, and diversification. “As Naacam notes, carbon has become ‘part of the cost of doing business and increasingly, part of the value too’.” As the globe shifts to new energy vehicles and competition from China, it is crucial South Africa scale new products such as e-axles and thermal systems, and markets, particularly under the Africa Continental Free Trade Agreement. Referring to development around new energy vehicles, the minister reported that amendments of the automotive production and development programme phase 2 legislative framework for the inclusion of electric vehicles and associated components have been completed. In addition, the relevant amendments to the existing Automotive Investment Scheme (AIS) guidelines are being finalised to align with APDP2 amendments and the energy vehicle legislative framework. “The Taxation Laws Amendment Act, gazetted on 24 December 2024, introduces a 150% capital allowance for qualifying investments in energy and hydrogen vehicle production. It covers assets such as buildings, plant, and equipment brought into use between 1 March 2026 and 1 March 2036.” A critical minerals strategy and battery value chain master plan are also being developed. A comprehensive skills gap analysis was completed under the energy vehicles skills workstream. Curricula and certification programmes are now being developed with Tshwane University of Technology, Cape Peninsula University of Technology, Durban University of Technology, and Unisa. A pilot project involving 100 students is expected to be rolled out in Q1 of 2026 once the academic materials are finalised. Transformation: Scale, skills, and equity “We have walked a long journey with the automotive sector on transformation. It therefore goes without saying that inclusion drives growth.” SAAM’s target of 130 new black-owned manufacturers is advancing, with 26 black-owned small, medium, and micro enterprises (SMMEs) exhibiting at the 2025 Naacam Show. However, pace needs to be picked up. “To this end we are hopeful that the industry will support the endeavour of the Transformation Fund that we are pursuing at the dtic with the view to enhance overall transformation through Enterprise and Supplier Development (ESD) funds.” The minister added: “We need to accelerate skills development to ensure that we prepare our labour force for the dramatic changes that artificial intelligence will bring into the sector.” The government is also working hard to eliminate compliance burdens and reduce red tape which inhibits investment into the country’s automotive sector. “Our policy response is accelerating, and we plan on introducing an Omnibus (General Laws Amendment) Bill which looks to fast-track high impact investments and projects within 90 days.” In addition, the government is looking at the impact of imports into the country and the impact they are having on local production. “We want to grow the sector so our first option must not be to wield a stick but rather offer a carrot to these companies to attract more investment into the country, thereby increasing the value-add of particularly our component manufacturers.” Minister Tau also encouraged the industry to accelerate collaboration. “OEMs need to continue to honour local procurement targets and mentor and invest in SMMEs.” Tier 1 Suppliers must drive equity partnerships and Tier 2/3 development. “Naacam’s partnership with

Women’s Day celebrations at TASEZ

News / By Jenny Tennant

The Tshwane Automotive Special Economic Zone took some time out of the day on Friday, 8 August 2025 to celebrate and honour the women staff of the special economic zone the day ahead of South Africa’s Women’s Day. As the women started arriving at work, they were greeted by a significant message playing on the screen at the TASEZ head office reception. The familiar TASEZ logo was prominently displayed along with its well-known pay-off line “Africa’s first automotive city”. But that message soon changed. Breaking from tradition, the TASEZ pay-off line morphed into “National Women’s Month – you are the heartbeat”. Then came an unexpected message – an explanation as to why TASEZ had taken the bold step to amend its pay-off line for August: “We decided to change the branding because you have changed us”. The women were also greeted by TASEZ’s Infrastructure Executive, Andile Sangweni. He acknowledged those in the room, noting they were all women of resilience and strength. “I thank each and every one of you for being the strong women you are – not the women of social media, but the women who stand their ground and excel.” He reminded the group of the historic Women’s March on 9 August 1956, when 20 000 women from across the country converged on the Union Buildings, just a few kilometres from where TASEZ is located, to deliver signed petitions against the apartheid pass laws which severely curtailed the movement of black South Africans. “If I had to characterise the women of that time, they were women of courage, they were women of resilience, they were strong women,” Sangweni said, pausing briefly before adding that when he looked around the room he saw the same. Acknowledging that the women often found themselves in an environment that could be difficult for them, in an environment dominated by men, he saw them always striving to do better and achieve. “I thank you for setting the example, I thank you for passing on the torch to the younger generation.” The women of TASEZ have taken to heart the message from United Nations’s secretary general António Guterres when he said: “When women and girls can rise, we all thrive.”

TASEZ Walks the Talk

News / By Jenny Tennant

Staff of the Tshwane Automotive Special Economic Zone (TASEZ) traded in their steel-toed boots for sneakers this past weekend as they participated in the exciting 702 Walk the Talk on Sunday, 27 July 2025. Full of energy, determination, and a sense of togetherness, the TASEZ team was ready to shine at one of Gauteng’s most well-known community events in the City of Tshwane. TASEZ serves as a centre for creativity and growth in the automotive industry. It is not only a driving force for economic progress but also helps strengthen social ties and improve employee well-being. Joining the annual Walk the Talk event matches the organisation’s goal of empowering individuals, creating connections, and promoting a lively work-life balance. The walk was not just a fitness challenge; it was a celebration of 45 years of Radio 702 and 25 years of the station’s Walk the Talk. It was a celebration of progress, resilience, and the power of people coming together outside the boardroom and production lines. “It was a great experience to see thousands of people walk. The event was well organised, safe, family-friendly, with great entertainment and support along the route,” said Sanele Sibeko, a finance officer at TASEZ. From laughter shared along the historical route from Freedom Park to the Union Buildings to meaningful conversations between strides. TASEZ’s presence echoed its commitments to both its people and the greater community. Whether on production lines or against the scenic backdrop of the City’s urban landscape, TASEZ continues to prove that its organisation is built to move forward, together. “I initially didn’t want to go, but after being convinced, I can say I enjoyed it and would do it again. It was nice knowing people outside of work, networking, getting to know their real personalities,” said Faith Njamba, a TASEZ monitoring and evaluation intern. “I wish they could do it every six months or so,” said Elias Maleka, an intern in the small, medium, and micro enterprises unit. Senior legal manager, Dinky Mathabela, enjoyed the walk from beginning to end. “It’s not my first time there, but I think this year was better, and I believe next year can be greater.”

Auto industry continues to drive investment, jobs and innovation

News, Thought leaders / By Jenny Tennant

In his weekly newsletter, President Cyril Ramaphosa wrote about the importance of the automotive manufacturing sector in transforming the economic sector, creating jobs, providing much-needed skills development, and driving innovation. South Africa has a well-established auto manufacturing industry that is more than a century old. It has proven to be one of the most resilient sectors of our economy. Since the first assembly plants were established in the Eastern Cape in the 1920s, the auto industry has grown to become the largest manufacturing sector in the country. South Africa’s role in global vehicle manufacturing has expanded and grown. Auto companies like Toyota, Ford, Nissan, Volkswagen, BMW and Mercedes-Benz have plants here in our country that produce vehicles for the local market and for export to many other countries in the world. A number of these companies continue to expand their investments in our country. The sector currently supports more than 115,000 direct manufacturing jobs and more than 500,000 across the value chain. It contributes approximately 5.3% to GDP. However, the industry is under growing pressure. The introduction of stricter vehicle emissions regulations in leading export destinations such as the European Union, as well as new tariffs from the United States, are expected to have a significant impact on the sector. With exports currently accounting for approximately two-thirds of local vehicle production, it is critical that we strengthen the sector to not only overcome current headwinds, but to ensure its long-term sustainability. Last week, I attended the launch of BMW’s new X3 plug-in hybrid at the company’s Rosslyn plant in Tshwane. South Africa is the exclusive global production site for this model. The shift from internal combustion engines (ICE) towards hybrid and electric vehicles (EVs) in a number of markets means that green mobility is becoming increasingly important for automotive manufacturers. The latest investment by BMW following their pledge at our South Africa Investment Conference in 2023 is a welcome signal to investors that South Africa remains a favourable place to do business. As Government, we are working to ensure there is an enabling regulatory and policy environment to support the growth of this burgeoning industrial activity. Our five South Africa Investment Conferences, where we invited companies to make investment pledges that are translated into actual investments, is an important platform for companies to declare their investment intention to South Africa and demonstrate that South Africa is an investable market. Government support to the car manufacturing industry through the Automotive Production and Development Programme will position South Africa as a key global manufacturing base for vehicles of the future. This isn’t just critical to the sustainability of the sector, but to growing the workforce and skills of the future. BMW, for example, has a training academy that focuses on competencies like EV assembly and robotics. The company is also a founding partner of the Youth Employment Service (YES), which was established between Government and the private sector to create work experience opportunities for young people. This initiative introduces young people into the world of work for a year of experience and training. Often if they meet the standards of the participating company they stand a good chance of being absorbed as employees of the company. BMW’s participation in this programme has supported more than 3,500 young people with training and work placements across all nine provinces. We have invited more companies to participate in the Youth Employment Service (YES) programme as broadly as BMW has done. We are working to ensure that more production takes place locally, creating more employment. To do this, we must upskill our workforce and facilitate the creation of new companies across the value chain. As such, we welcome initiatives by the sector to support skills development through initiatives such as the Centre of Excellence at the Tshwane Automotive Special Economic Zone. This centre has an artisan training academy, an incubation hub and a science, technology, engineering and mathematics programme for high school learners. There are also a number of industry-driven training initiatives focusing on technical and artisanal skills, and deepening collaboration between Government departments, vocational colleges and companies to grow a new skills pipeline. Protecting existing jobs in the sector is paramount, particularly in the light of the looming US tariffs. The need to diversify our export base has become all the greater. We are committed to working with the sector to expand its continental footprint, building on the already strong growth of exports to the SADC region and leveraging the trade relationships that exist. Amid these challenges, South Africa’s auto industry is making the investments needed to build resilience, protect jobs and lead the way into a new era of green mobility.

SMMEs – engines of economic growth and regional trade

News / By Jenny Tennant

By Mandla Mpangase Small, medium, and micro enterprises stand poised to become powerful catalysts for regional trade and economic growth. This was one of the key messages of Gauteng MEC for Finance and Economic Development Lebogang Maile to the delegates at the African Continental Free Trade Area (AfCFTA) Conference taking place on 24 July 2025 in Johannesburg. “Micro, small, and medium enterprises (SMMEs) represent the heartbeat of Africa’s economy,” the MEC said. SMMES across Africa create the most employment, drive innovation and provide much-needed goods and services that sustain communities. In South Africa SMMEs account for 80% of the country’s workforce and create an estimated R5-trillion turnover annually. It is estimated that there are three million SMMEs in South Africa, which employ some 13.4 million people. Of those, 2.5 million are micro-enterprises. Of these micro-enterprises, 72% operate in the informal sector. The SMME sector is vitally important to the Tshwane Automotive Special Economic Zone, which, from its inception, committed to building the local township economies of Eersterus, Mamelodi and Nellmapius. During its Phase 1 development, Africa’s first automotive city ring-fenced R1.7-billion of its procurement spend for SMMES and emerging entrepreneurs. As it expands Phase 2 of its development, TASEZ is planning to increase the numbers of SMMEs it supports through infrastructure projects, the creation of job opportunities, and skills training in both business development and in technical training for the automotive manufacturing industry. SMMEs as catalysts Speaking at the AfCFTA Conference, MEC Maile also noted: “In light of the African Continental Free Trade Area – the largest free trade area in the world by the number of participating countries – SMMEs stand poised to become powerful catalysts for regional trade and economic growth.” The responsibility of the Gauteng Provincial Government, and all the stakeholders attending the conference, is not only to explore the pivotal role of SMMEs in shaping Africa’s economic landscape, but to outline their opportunities and challenges under AfCFTA, the MEC added. It was important to identify the strategies needed to harness the full potential of SMMEs for sustainable development. SMMEs in Africa operate across diverse sectors, from agriculture and manufacturing to services and digital innovation. They drive local value addition, foster entrepreneurship, and serve as engines of social mobility, particularly for youth and women. The latest FinScope MSME South Africa 2024 Survey, launched a few months ago, found that in the South African context of high unemployment rates, particularly among the youth, 30% of SMME-owners are 35 years old or younger. “While this may be considered too low, given that 50% of the adult population are youth aged 16-35 years, and that this demographic constitute 60% of the unemployed population, it indicates the important role that the SMME sector can play in turning the tide of youth unemployment in a continent with the world’s youngest population,” MEC Maile said. SMMEs creating jobs SMMEs are vital for job creation, notably absorbing the continent’s rapidly growing workforce. Their size also allows them to adapt quickly to market needs and to experiment with new products and services, facilitating innovation and flexibility. They also play a significant role in poverty reduction on the African continent, the MEC said, adding that by offering livelihoods to millions, they also play a direct role in reducing poverty and enhancing inclusive growth. The AfCFTA promises to reduce tariffs, eliminate barriers to intra-African trade, and stimulate industrialisation and investment. In doing so it will allow the SMMEs to access a much larger market beyond their national borders and creating unprecedented opportunities for growth by tapping into regional value chains, supplying components, services, or finished goods. “This not only promises gross domestic product growth across the African Union but also sets parameters for attracting investment in a depressed and volatile global economy.” A harmonised market environment would make African SMMEs more attractive to investors, both domestic and foreign, like the European Union. “The integration of markets through AfCFTA empowers SMMEs to play a transformative role in regional trade.” They can do this through enhancing of cross border trade, leveraging AfCFTA to expand their reach. “Reduced tariffs and simplified customs procedures lower the cost of doing business across borders, Maile added. This enables SMMEs to diversify their customer base, mitigate risks, and benefit from economies of scale. SMMEs as innovators In addition to this, they can also act as catalysts in driving innovation and competition. “Exposure to a broader market compels SMMEs to innovate and improve their competitiveness. This, in turn, stimulates higher quality standards, greater efficiency, and the adoption of new technologies,” Maile said. The AfCFTA facilitates the creation of regional value chains, where SMMEs can serve as suppliers, assemblers, or distributors. “By collaborating with firms in other African countries, SMMEs can access raw materials, expertise, and markets otherwise beyond their reach.” Such integration boosts industrialisation and intra-African trade, which remains concerningly low. “Intra-African trade still represents a relatively small portion of Africa’s overall global trade. In 2022, a year after the implementation of the AfCFTA, it reached $102-billion but only accounted for 15% of Africa’s total trade. “However, in 2024, intra-African trade reached $208-billion, representing a 7.7% increase compared to the previous year.” This growth could be attributed to the implementation of the AfCFTA and improved trade policies. The final key catalyst of SMMEs in the context of the AfCFTA is the promotion of inclusive economic growth. SMMEs are often owned or led by women and youth. “Their participation in regional trade under AfCFTA ensures that the benefits of integration are broadly shared. This inclusivity promotes equitable development and reduces inequalities within and between countries,” said MEC Maile. He also noted the AfCFTA creates a fertile environment in which SMMEs could survive, providing opportunities to access to new markets, an improved business environment, technology and knowledge transfer, and finance and investment. However, SMMEs also face hurdles that could hinder their ability to capitalise on AfCFTA such as a lack of information, inadequate access to finance, poor infrastructure, capacity constraints, and a complex regulatory environment. “To