News Archives - Page 2 of 10

Auto manufacturing leaders urge action on investment

By Mandla Mpangase South Africa’s automotive sector, a key industry for the country’s economy, faces losing ground globally unless decisive action is taken to attract and retain new investment. This was the central message of a high-level panel discussion at South African Auto Week 2025 taking place in Gqeberha from 1 October 2025. This year’s South Africa Auto Week, hosted by the Automotive Business Council (naamsa), is being held under the theme “Reimagining the future together – Cultivating inclusive growth and shared prosperity”. The panel, moderated by Financial Mail and Business Day editor-at-large David Furlonger tackled the topic “Salient ingredients to attract new investment for auto manufacturing in South Africa”. Furlonger opened the discussion with a stark reminder: while global markets are making inroads with new energy vehicles, South Africa lags behind. “We are very good at coming up with plans, but not so great at implementing them,” he warned. “Now we need action.” Policy and incentives The director of advanced manufacturing at Invest SA, an agency of the Department of Trade, Industry and Competition, Rashmee Ragaven, outlined a suite of government programmes, including the Automotive Production and Development Programme and the Automotive Investment Scheme, that have been designed to support manufacturers Ragaven stressed the importance of partnerships between government and industry, and the role of free trade agreements, skills development, and special economic zones such as the Tshwane Automotive Special Economic Zone based in Gauteng, and the Eastern Cape’s industrial development zone of Coega in anchoring investment. But Ragaven acknowledged speed is critical to bringing about any change. “The partnerships are there, but the speed of action is even more critical now than ever before.” The Eastern Cape scenario CEO of the Eastern Cape Development Corporation, Ayanda Wakaba, highlighted the vulnerability of the province’s automotive industry, long a hub for OEMs such as Mercedes-Benz and VW. “The market dynamics have shifted so much that establishing an industrial plant today is very different to before. “We must benchmark ourselves against what other countries are doing,” he said. While defending the sector remains essential, Wakaba stressed the need to diversify into new industries and leverage digital infrastructure investments in rural areas to broaden economic opportunities. A call for action For Andreas Brand, CEO of Mercedes-Benz SA, the formula is simple: action. He pointed to Mercedes-Benz’s investments in solar energy and skills development through its learning academy as proof that collaboration with government can deliver results. “Without acting, theory never hits reality,” he said. “We need robust, constructive engagement and specific actions that all parties adhere to. That is what delivers change.” Mickey Mama, head of department at the Eastern Cape’s Department of Economic Development, Environmental Affairs and Tourism, drew comparisons with Morocco and Eastern Europe, both of which have surged ahead of South Africa in attracting investment. “Our municipalities take too long to approve applications. Morocco has a turnaround time that outpaces us completely,” Mama said, warning that red tape and a lack of policy clarity on NEVs risked pushing investment elsewhere. Chinese brands on the lookout for opportunities South Africa is also facing a wave of interest from Chinese automotive brands, but obstacles remain. Conrad Groenewald, COO of Great Wall Motors, noted that while Chinese firms are eager to invest outside of China, South Africa’s current policies make it hard to justify the return on investment. “We compete globally. South Africa is already at a disadvantage being at the tip of Africa. We need policies that allow reasonable returns for investors,” he said. Groenewald also cautioned that rising import duties and the potential removal of import credit benefits would hurt consumers and deter new entrants. “Vehicle pricing has already outpaced earnings. If policies change further, it will make it even harder to do business here,” he warned. Need to strengthen component supplier base Bronwyn Kilpatrick, CFO of Toyota, stressed the urgent need to strengthen South Africa’s tier two and tier three supplier base. “In South Africa, our manufacturing pyramid is inverted. Only 20% of value-add comes from local tier two and three suppliers. In Thailand, it’s the opposite, and it’s driven by targeted incentives,” she explained. Developing smaller suppliers, however, requires long-term commitment, mentorship, and patient capital, she added. The time to act is now Across the panel, one complex theme emerged: the need for clear policy, faster implementation, and real partnerships to support both OEMs and suppliers. As Ragaven concluded: “There is a shift in mindset in government, but speed is critical. We cannot afford to wait any longer.” South Africa’s automotive sector, which contributes nearly 5% to GDP and supports hundreds of thousands of jobs, now faces a defining moment. Competing nations like Morocco, Thailand, and Eastern Europe have shown what decisive policy and execution can achieve. South Africa must act – and it must act now – to translate its world-class skills and its hard-earned manufacturing expertise into a future-ready industry.

One-Stop Shop for investors launched in Tshwane

News / By Jenny Tennant

A new InvestSA One-Stop Shop has opened in the City of Tshwane to assist investors to speed up their new businesses or projects and cut bureaucratic red-tape. The centre, based at the Tshwane Economic Development Agency (TEDA) offices in Centurion, is part of the government’s drive to become investor friendly by improving the business environment by lowering the cost of doing business and making the process easier. The official opening, on 23 September 2025 highlighted the last drive by the City of Tshwane in attracting investors to support its infrastructure development and local economic growth, and is in keeping with its #TshwaneRising campaign. The one-stop shop, which aims to improve the ease of doing business, attract and retain investment, thereby creating jobs and supporting the City’s economic revitalisation, is the result of a strategic partnership between the Department of Trade, Industry and Competition, the Gauteng Growth and Development Agency, and TEDA. It is also an important development for the Tshwane Automotive Special Economic Zone, providing another platform to showcase the TASEZ business case for investors. The City of Tshwane’s executive mayor Dr Nasiphi Moya noted that the launch of the centre came just weeks after the City’s investment summit. The one-stop shop is an important facility in helping the investors who made pledges to the tune of more than R16-billion at the summit. Dr Moya reiterated the City’s ambitious plans encapsulated in the Tshwane Economic Revitalisation Strategy, which has plotted the roadmap of empowering the City through creating more than 80 000 jobs, attracting up to R26-billion in new investment, and achieving a growth rate of 4% within the next five years. The latest Statistics South Africa data confirms that the City of Tshwane is making significant progress. It has shown a 4.5% decrease in unemployment, driven by the city creating more jobs than any other metro. “This shows that Tshwane is rising,” the MMC for Economic Development and Spatial Planning Sarah Mabotsa said. The City of Tshwane has identified 11 key economic sectors, with the automotive manufacturing sector sitting at the top of that list. TASEZ, which is based in the east of the City of Tshwane, is a prime example of what investment can do in boosting the local and provincial economy, providing jobs for township businesses and individuals, transforming both the sector and the economy, and promoting skills development and innovation. With the launch of Phase 2 and the development of logistics infrastructure, TASEZ now provides new avenues for investors to explore, further enhancing Tshwane’s role as a hub of innovation, manufacturing and trade. These initiatives are not only creating jobs today but also laying the foundation for long-term prosperity. “We need to agree on the vision that we have for the future of this city and its people,” said Moya.

Tshwane Investment Summit exceeds expectations, garners R16bn in pledges

News / By Jenny Tennant

By Mandla Mpangase The Tshwane Investment Summit 2025 exceeded expectations: against a target of attracting R5-billion in new investments, more than R16-billion has been pledged to the City’s various infrastructure sectors. However, investment is not merely about numbers, it is about people – every rand invested must translate into jobs, dignity and opportunity, says Gauteng MEC for Economic Development and Finance Lebogang Maile. The MEC was the key note speaker at the summit which was held in Menlyn Maine on 10 September 2025 under the tagline #TshwaneRising. The City of Tshwane highlighted its portfolio of catalytic opportunities for investors, focusing on: The automotive and manufacturing sector anchoring localisation, supply chain integration, and new energy vehicle production. Tourism, leveraging the City’s cultural and historical elements along with MICE (meetings, incentives, conferences, and exhibitions) assets. Property and construction, from revitalised government precincts to mixed-use developments at sites like Pretoria West and Rooiwal. Agro-processing, using peri-urban land to strengthen food systems, build resilience, and expand agri-value chains. This summit was not a ceremonial summit but a platform where investment must engage with opportunities to drive real outcomes, Maile noted. “Our policy ambitions, the strength of the private sector and the needs of our citizens must converge into concrete commitments.” Gauteng Investment Summit results The Tshwane Investment Summit followed in the footsteps of the inaugural Gauteng Investment Conference in April 2025, where R312-billion in pledges was secured, 117 bankable projects worth R239-billion were showcased, and demonstrated a potential to create 115 000 jobs across the province. “These pledges underscore Gauteng’s commitment to economic transformation, with an emphasis on advanced manufacturing, information, and communication technology (ICT), infrastructure development, and other key industries aligned with the province’s growth and development strategy.” Importantly, 57% of the investment commitments were secured from domestic investors, reflecting robust local confidence in the provincial economy, MEC Maile noted. The remaining pledges originated from international partners, notably the United States, France, and India – countries with established trade and investment relations with South Africa. “Gauteng remains the unrivalled case for investment in South Africa and on the African continent … Gauteng is not waiting for the world to change; it is shaping its own future,” Maile said. A comprehensive 25-year review of foreign direct investment (FDI) trends highlighted both Gauteng’s historical strengths in attracting investment and the areas requiring strategic enhancement to remain competitive in an increasingly technology-driven global economy. TASEZ impact As a key role player in attracting foreign and local direct investment, the Tshwane Automotive Special Economic Zone (TASEZ), is keenly aware of the challenges identified by investors: red tape, issues related to bulk infrastructure, energy and water constraints, and community challenges. During Phase 1 of its development, TASEZ attracted R14.72-billion in investment from both government and the private sector, and it is well on track to double that during Phase 2. MEC Maile added: “The inaugural City of Tshwane Investment Summit gives impetus to the need to turn Gauteng into an active investment node that will propel South Africa’s economy. “This happens at a critical moment where the International Monetary Fund has projected global growth at 2.8% in 2025, citing geopolitical instability and rising trade restrictions as key risks. “South Africa’s outlook is weaker, real GDP is expected to grow by just 1.0%, with inflation at 3.8%.” Fixed investment is forecasted to contract by 0.8% as high interest rates and policy inertia dampen private capital formation, Maile told the participants at the summit. Export growth is limited to 1.3% amid external shocks and new tariffs. The current account deficit is expected to widen to 1.1% of GDP. “Despite this, macro fundamentals remain intact: inflation is within target and fiscal consolidation is on track. However, weak infrastructure delivery and regulatory uncertainty continue to drag on growth potential. Foreign direct investment remains critical to stabilising and rebuilding momentum.” The MEC noted several key facts regarding the City of Tshwane: It is a city of 4.1 million people, a quarter of Gauteng’s population It generates R452-billion in real GDP, accounting for 28% of Gauteng’s GDP, giving it a GDP per capita of R109 555, higher than the Gauteng average. In 2024, Tshwane exports reach R400-billion, almost a third of Gauteng’s total. Imports exceed R197-billion, making Tshwane a hub of both production and consumption. More than 1.27 million people are employed in the city, amounting to a quarter of Gauteng’s workforce. Tshwane accounts for a significant share of Gauteng’s manufacturing jobs, contributing 220 jobs for each 1 000 manufacturing jobs in Gauteng. This reach spans from food and beverages, chemical products, automotive and transport equipment, to electrical machinery and components. The importance of the automotive manufacturing sector to the City of Tshwane was obvious during the summit, with the chairperson of TASEZ, Maoto Molefane, acting as the programme director. Also present at the summit was TASEZ CEO, Dr Bheka Zulu. Notably, Tshwane hosts 30% of Gauteng’s transport equipment jobs, the backbone of the automotive sector, the MEC noted. With BMW and Nissan anchoring the Automotive Industry Development Centre (AIDC) in the west of the city, and Ford and TASEZ in the east, “this city is leading South Africa into the era of new energy vehicles”. City of Tshwane opportunities At the same time, services are rising. Finance and insurance sectors employ over 12% of Tshwane’s workers, while education, health, and research institutions give this city an intellectual and innovative edge. The city is also significant in construction, contributing more than 23% of Gauteng’s employment in that sector. Together, these industries define Tshwane as a hub of industrial production and infrastructure development; a city that builds, assembles, and powers not just Gauteng, but South Africa, Maile said. “Johannesburg may be the financial engine; Ekurhuleni the logistics platform but Tshwane is the balancing axis; a city where government, industry, research, and exports converge.” The summit is a catalyst for the Tshwane Economic Revitalisation Strategy which has set a bold target of attracting between R17- and R26-billion in new investments, growth of 4% a year,

Gauteng assesses its readiness for a transformed automotive sector

News / By Jenny Tennant

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.”