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Empowering youth to drive the future of automotive manufacturing

By Dr Bheka Zulu: CEO of TASEZ Young people have the power to reshape South Africa’s automotive manufacturing sector; they are driven, they are innovative, and they are prepared to adapt – much like the young people who united against their circumstance in 1976. This 16 June, as we remember the bravery of the young generation who rose up against oppression and fought for their right to education and opportunity, their fight must continue – this time against poverty and barriers that block economic opportunities. Currently, South Africa faces a youth unemployment rate of 62.4% among individuals aged 15-24 years. Today, it is our responsibility to ensure that the promise of economic empowerment and industrial transformation reaches every young South African. Across the globe, industries are evolving, and automotive manufacturing is no exception. We are witnessing a profound shift, driven by technology, sustainability, and the growing need for innovation. Yet, the question we need to ask is who will lead this transformation? The power of the youth Young minds bring fresh perspectives, creative problem-solving, and a deep understanding of emerging technologies. With access to the right skills, opportunities, and platforms, they will be the pioneers of change, ensuring that South Africa remains competitive in the global automotive landscape. With the staggering unemployment figure, we must invest in skills development programmes that equip young people with advanced technical expertise, digital proficiency, and leadership abilities. These initiatives should align with global trends such as electric vehicle production, automation, and artificial intelligence in manufacturing. Through strategic partnerships between government, private industry, and educational institutions, we can create training programs that meet the demands of modern automotive production. Programs like apprenticeships, vocational training, and STEM education are not just investments in individuals; they are investments in the future of our economy. Small, medium, and micro enterprises While established corporations dominate the automotive sector, the backbone of any thriving economy lies in its small, medium, and micro enterprises (SMMEs). These businesses foster agility, creativity, and adaptability—traits essential for industry transformation. SMMEs contribute approximately 34% to South Africa’s GDP and employ over 60% of the workforce. By empowering young entrepreneurs with access to funding, mentorship, and market opportunities, we can ensure that innovation flourishes within the automotive sector. SMMEs are the lifeblood of the country’s economy, and they are central to TASEZ’s mission of inclusive growth. In Phase 1 of its development, TASEZ invested R1.7-billion in 229 SMMEs from communities like Mamelodi, Eersterust, and Nellmapius. This investment, representing 43% of TASEZ’s construction budget, exceeded the national target of 30%. Of this, 6.2% went to women-owned businesses, 18% to youth-owned businesses, and 2% to businesses owned by people with disabilities. These SMMEs supported 5 071 construction jobs, with 60% going to youth and 18% to women, and 3 311 permanent jobs, with 65.47% for youth and 32% for women. As TASEZ moves into Phase 2, it anticipates that a further R1.1-billion will be spent on SMMEs and over 6 000 jobs will be created. TASEZ and its youth initiatives The Tshwane Automotive Special Economic Zone (TASEZ) is committed to creating an ecosystem where young innovators and business owners can thrive. We are committed to harnessing the energy, creativity, and potential of young South Africans to revolutionise the automotive industry. The automotive manufacturing sector, which contributes 5.3% to South Africa’s GDP, faces challenges like global competition and technological disruption, yet it holds immense potential for growth. We recognise the importance of integrating SMMEs into the automotive supply chain. By ensuring that locally owned businesses have access to procurement contracts, technical training, and growth opportunities, we are not only strengthening our economy but also creating sustainable jobs for young people. The TASEZ Training Academy, established in 2024, works closely with training institutions, Sector Education Training Authorities (SETAs), and industry, TASEZ is working hard to enable emerging entrepreneurs to develop cutting-edge solutions that will define the future of mobility. Emerging entrepreneurs need support on multiple levels, access to markets and finance, skills development and mentorship in business, and industry networking opportunities and information. The TASEZ Training Academy tries to support young South Africans on all these levels. With the industry rapidly evolving and moving towards new energy vehicles, mechatronics, and robotics, the TASEZ Training Academy has prioritised skills development for the industry’s future. In 2024, the academy celebrated the training of 526 young people from local communities in safety, health, environment, and quality skills critical to the automotive value chain. Working with various SETAs, the TASEZ Academy has set aside funding for 40 engineering degrees, 20 master’s degrees, and 10 PhDs to cultivate local intellectual property and nurture black engineers. These efforts align with the National Development Plan’s goal of producing 30 000 artisans annually by 2030, ensuring our youth are equipped to lead in a digitised, green economy. New energy vehicles As the global automotive industry is shifting towards sustainability, and South Africa must keep pace. In 2023, electric vehicle sales in South Africa surged by nearly 83% compared to the previous year. This growth presents an opportunity for young professionals to lead the charge in new energy production, battery technology, and sustainable mobility solutions. By investing in skills training for new energy vehicle manufacturing and maintenance, we can ensure that South Africa remains competitive in the global automotive market. Building a new future To the youth of South Africa, the time is now to embrace technology, invest in skills, explore entrepreneurship, and become the architects of an automotive industry that is world-class, sustainable, and inclusive. To the industry leaders and decision-makers, the time is now to work together to ensure youth-led initiatives receive the support they need – the time is now to a sector that does not just produce vehicles but empowers communities and transforms lives.

‘Let’s strengthen South Africa’s SEZ model’

News / By Jenny Tennant

South Africa’s Special Economic Zones are working – let’s strengthen the model, not abandon it, argues the CEO of the Tshwane Automotive Special Economic Zone, Dr Bheka Zulu. Special Economic Zones (SEZs) have become the latest ideological battleground in South Africa’s ongoing quest for inclusive growth, industrialisation, and sustainable job creation. In a recent article on News24, Ann Bernstein of the Centre for Development and Enterprise (CDE) called for the private sector to take over the management of these zones, arguing that government-led SEZs have failed to attract investment or deliver value. While her concerns about state capacity are not unfounded, this blanket assessment misses crucial successes and risks throwing away a powerful economic tool that is beginning to bear fruit, especially in the automotive sector. At the Tshwane Automotive Special Economic Zone (TASEZ) we are seeing a very different story from the one Bernstein outlines. TASEZ is the first hybrid model in demonstrating the power of the three-tier government partnership so it brings in a different approach to that used in South Africa’s SEZ sector previously. Established as a strategic partnership between the Department of Trade, Industry and Competition (the dtic), the Gauteng Provincial Government, and the City of Tshwane, in collaboration with the Ford Motor Company, TASEZ has become a model of effective collaboration between the public and private sectors. Since its inception in 2020, TASEZ has attracted over R28-billion direct and indirect investment and supported the creation of more than 8 000 construction and permanent indirect jobs, many of which are for young people from previously marginalised communities. Additionally, more than 10 000 jobs across the supply chain have been created. Furthermore, more than R1.7-billion, based on a social compact, was spent on SMMEs in and around the City of Tshwane between 2021 and 2024. These are not promises or projections – they are real numbers backed by infrastructure, operating factories, and a thriving ecosystem of component suppliers. A key enabler of this success has been the decisive role of the state in creating the conditions for investment: building roads, ensuring bulk infrastructure, streamlining regulatory processes, and coordinating skills development through various initiatives. That said, Bernstein is right to push for more agile, results-driven management. The private sector’s role is not only welcome – it is essential particularly now that government is pushing for a policy discussion for private sector participation. But rather than handing over the reins entirely, we need to deepen the hybrid model that has proven effective in cases like TASEZ. Government’s role should focus on regulation, enabling infrastructure, and long-term industrial planning, while operators and investors bring in the operational efficiency, market access, and innovation that drive competitiveness. Indeed, the problem is not that SEZs are state-led, it’s that too many are state-led in theory but lack the kind of collaborative approach that aligns municipal, provincial, and national priorities. Where this coordination exists, as in TASEZ, we see tangible results. Where it doesn’t, frustration festers. The automotive sector, supported by the South African Automotive Masterplan (SAAM 2035), is uniquely positioned to demonstrate the value of SEZs. The sector is one of the country’s largest manufacturing contributors to GDP and exports, and it relies heavily on global value chains, just-in-time logistics, and infrastructure precision. An SEZ tailored to these requirements can be the difference between securing a global model’s production or losing it to another country. South Africa must continue to refine its SEZ policy, not abandon it. This includes tightening criteria for SEZ designation, strengthening management capacity, and measuring outcomes rigorously. But dismantling the model now, just as it starts to show success in strategic sectors, would be a mistake. Let’s learn from what works. At TASEZ, we welcome robust engagement, and we invite public and private stakeholders alike to visit, assess, and partner with us in shaping the next chapter of industrial development. The SEZ model, when done right, can be one of the most powerful tools in our developmental arsenal. This article was first published in News 24 Business: South Africa’s SEZs are working – let’s strengthen the model, not abandon it 18 June 2025

TASEZ – a force for industrial renewal through skills development

News / By Jenny Tennant

By Mandla Mpangase The future of South Africa’s manufacturing sector lies in the hands of the school learners, who need to be ready for a fast-changing environment marked by the complexities of artificial intelligence and the drive towards a carbon-neutral world. The automotive manufacturing sector is already embracing green technology, AI development and design, and the change from combustion engines to new energy vehicles. These issues, along with much-needed entrepreneurial skills, are core to the work being done by the TASEZ Training Academy. In keeping with this drive to develop skills for the future in the automotive manufacturing sector, the Tshwane Automotive Special Economic Zone (TASEZ) will be working closely with the Department of Basic Education to support local schools of specialisation and technical high schools. The two signed a memorandum of understanding to develop curricula that produce entrepreneurs and skilled learners who are ready for the automotive industry, along with providing skills development focused on the STEM subjects of science, technology, engineering and mathematics. So important is this development that the Ribane-Laka school in Mamelodi was turned into a science and ICT school of specialisation. The refurbished school was officially opened on 7 May 2025 by Gauteng Panyaza Lesufi, who observed that education makes economic sense. He added that it was important to make sure the education system in the townships is relevant. The school will focus on the automotive and electronic sectors – which is where TASEZ comes into the picture. “Africa’s first automotive city is not just a special economic zone. It is a force for industrial renewal,” said TASEZ CEO, Dr Bheka Zulu. In opening the school, Lesufi noted: “Today, we are launching education for purpose, where our children will not be taught things that will not assist them. Our children will not be taught things that will be irrelevant when they leave school.” The Ribane-Laka school is the future of education, he added, pointing out that the learners from the school will benefit from TASEZ, Africa’s first automotive city. “Never before has anyone thought that a Ford Ranger would be inside the school premises, not to boast but to teach our children how to repair it when it is broken. No one thought we could have an engine inside the school premises where our children can explain its meaning; where our children can explain to you how an engine functions.” The first next-generation Ranger was built by the Ford Motor Company of Southern Africa at its plant in Silverton, City of Tshwane. The components for that car were manufactured by the tenants housed at TASEZ, which is located next to the original equipment manufacturer. Emphasising the message by the premier, Dr Zulu noted that the TASEZ Training Academy is not simply about skills programmes, it is about creating relevance. “We’re preparing young people for the future of work – advanced manufacturing, electric vehicles, industrial automation. We’re building a talent pipeline that our automotive manufacturing tenants can depend on. So, when they set up operations here, they’re not bringing in imported expertise. They’re hiring our people.”

TASEZ explores electric mobility and investment partnerships in China

News / By Jenny Tennant

TASEZ CEO Dr Bheka Zulu and Business Development Executive Msokoli Ntombana reflect on their vital fact-finding visit to China, writes Mandla Mpangase. In a bid to deepen South Africa’s foothold in the global electric mobility revolution, a delegation from the Tshwane Automotive Special Economic Zone (TASEZ) embarked on a groundbreaking business and mobility study tour of China from 21 – 30 April 2025. The delegation, led by TASEZ Chief Executive Officer Dr Bheka Zulu and Business Development Executive Msokoli Ntombana, visited leading Chinese cities and innovation hubs to explore strategic investment, electric vehicle (EV) manufacturing opportunities, and clean energy technologies. Organised by the South Africa-China Transport and Technology Think Tank (SACTT), in partnership with Zhejiang Normal University and Valternative, the China mobility study tour took TASEZ to the heart of global electric vehicle production: from Shanghai’s smart cities to Shenzhen’s autonomous mobility ecosystems. “This mission was more than just a learning experience,” stated Dr Zulu. “It was a strategic positioning exercise. “As South Africa navigates the future of automotive manufacturing, China offers a blueprint for rapid, sustainable, and scalable industrialisation in electric mobility. We needed to be at the forefront of that conversation.” The tour provided unprecedented access to China’s booming electric mobility ecosystem. TASEZ’s engagements included visits to: The tour also featured a vital diplomatic engagement with the South African consulate general in Shanghai, which pledged facilitation of future investment efforts and participation in the upcoming China International Import Expo, scheduled for November 2025. “We are no longer in the age where TASEZ only chases internal combustion vehicle assembly,” explained Ntombana. “TASEZ is evolving into a future-focused industrial platform – one that is open to new energy technologies, battery innovation, and smart logistics. “This tour helped us connect the dots between Chinese capabilities and South African potential.” Accelerating South Africa’s new energy transition China’s meteoric rise as a global EV leader has disrupted traditional supply chains and redefined auto manufacturing. With brands like BYD, NIO, and SAIC exporting in growing volumes, the global centre of gravity in the automotive industry is clearly shifting east. South Africa, and particularly Gauteng – which accounts for over 40% of the country’s automotive output – must adapt quickly to remain competitive. The visit was aimed at positioning TASEZ as a gateway for Chinese investors looking to establish operations in Africa, with a focus on electric vehicle production, green energy components, and value-chain localisation. “One of the biggest takeaways was witnessing how Chinese companies localise technology and scale it rapidly,” said Dr Zulu. “We saw factories that were established within a year and are now producing thousands of electric units daily. South Africa has the human capital, we have the land, and we have strategic trade links. What we need now is the technology and investment, and China is a willing partner.” From Shanghai to Shenzhen – a panoramic view of China’s EV future The journey started in Shanghai, where the delegation engaged with the Consul General and visited the Lingang Special Area, a free trade zone renowned for housing Tesla’s Gigafactory and other advanced manufacturing operations. Here, TASEZ drew inspiration on how spatial planning and industrial policy can be aligned for EV growth. From Qingdao, where MESNAC and Sailun operate, to Xiamen and Shenzhen, home to battery innovators and autonomous vehicle manufacturers, each city offered insights into supply chain agility, automation, and EV infrastructure. “What struck us most was how integrated China’s innovation ecosystem is,” Ntombana said. “Their universities, government policy, manufacturers, and even property developers work in sync to build mobility cities. This is exactly the model South Africa needs to replicate, especially around the TASEZ hub in Tshwane.” The TASEZ team has committed to a series of post-tour engagements, including exploring partnerships with key players in the automotive sector. “We cannot let momentum fade,” added Dr Zulu. “Each conversation we had must be turned into a formal business case, each handshake into a partnership proposal. The goal is simple – make TASEZ the African home for clean automotive innovation.” This is no longer just about TASEZ. “It’s about how South Africa positions itself in the race for the green economy. The Chinese have moved – fast. Now it’s our turn to catch up.”

TASEZ focuses on developing small enterprises for future growth

News / By Jenny Tennant

By Mandla Mpangase The 2025 Tshwane SMME Symposium explored the best ways to prepare small businesses for the industries of the future. It is important to prepare now so that small, medium and micro enterprises (SMMEs) will be in a position to lead both the country and the continent in the green economy, in technology, and in automotive manufacturing. The symposium, held on 6 May 2025 at the Innovation Hub, was hosted by the Tshwane Economic Development Agency along with the South African Electrotechnical Export Council and the Innovation Hub. The Tshwane Automotive Special Economic Zone (TASEZ) featured in a panel discussion on the road map for South African SMMEs to participate in future economies, with a particular focus on the automotive sector, digital technology and the energy sector. TASEZ CEO Dr Bheka Zulu spoke of the importance of understanding the impact SMMEs made in their sector, rather than simply looking at the numbers. “We need to know how we change lives, what are the SMMEs taking home?” He noted that TASEZ had ring-fenced R1.7-billion for SMMEs during the special economic zone’s Phase 1 development. Dr Zulu also addressed the issue of the skills gap within the automotive sector. TASEZ is now working closely with a number of partners to make sure the gap is closed. Technology can be a vital way to help the informal sector to grow. Another aspect was that SMMEs needed to be supported with research and development, Dr Zulu noted. He referred to a Chinese company, BYD, that has only been going for a decade. “They started as a battery manufacturer, but they evolved as the economic environment changed and now build cars. Last year they manufactured five million vehicles.” South Africa’s SMMEs must be strong enough to follow the same trajectory. It is vital to make sure that all role players understand the needs of the SMMEs and that SMMEs understand the requirements of industry. “Partnerships are important so that everyone understands the needs, requirements, constraints and challenges.” Partnering with established companies and organisations also makes access to markets much easier for SMMEs, who then have a champion lobbying on their behalf with the larger role players, Dr Zulu said. A key focus for TASEZ as it rolls out its Phase 2 development, is its support for black industrialists. The SMME symposium involved local SMMEs, representatives from a number of government agencies, potential funders, and industry partners, who all joined forces come up with concrete strategies to integrate township small businesses into mainstream supply chains and future-focused sectors. The Executive Mayor of the City of Tshwane, Dr Nasiphi Moya, summed up the importance of SMMEs to the job creation and innovation: “These enterprises are the lifeblood of our economy, the backbone of local employment, and the heartbeat of township revitalisation.” The symposium focused on how all the economic sector players can support, strengthen, and boost local SMMEs.

Igniting a spark: TASEZ’s Andile Sangweni inspires future engineers at Oprah Winfrey Leadership Academy

News / By Jenny Tennant

By Mandla Mpangase In a world shaped by innovation, engineering stands as the backbone of progress – designing, building, and maintaining the infrastructure and technology that drive modern life. This powerful message was at the heart of Andile Sangweni’s presentation at the Oprah Winfrey Leadership Academy for Girls, where he engaged young minds on the endless possibilities within the field of engineering. Speaking at the career exhibition, themed ‘Igniting the Spark of Endless Possibilities’, Sangweni, Infrastructure Executive at the Tshwane Automotive Special Economic Zone (TASEZ), shared insights on the role of engineers in transforming societies. “Engineering is more than a career; it is a commitment to problem-solving, innovation, and shaping the future,” he told the aspiring students. The event featured a diverse lineup of industry leaders, each offering unique perspectives on career opportunities in science, technology, engineering, and mathematics (STEM). Sangweni emphasised that engineering is crucial for South Africa’s economic development, particularly in sectors like automotive manufacturing, infrastructure, and renewable energy. “Young people, especially young women, have the power to redefine the engineering landscape. The key is curiosity, resilience, and a passion for problem-solving,” he encouraged. With TASEZ at the forefront of advancing South Africa’s automotive sector, Sangweni highlighted the importance of skills development and industry transformation. He urged the learners to explore engineering not just as a profession but as a platform to drive meaningful change. As the event concluded, learners left with a renewed sense of purpose, ready to embrace the boundless opportunities that engineering offers. With role models like Sangweni paving the way, the future of South African engineering looks brighter than ever.

TASEZ shows TIPS delegation what is possible in turning policy into reality

News / By Jenny Tennant

By Mandla Mpangase Hosting a group of government officials from across a range of economic-linked departments, the Tshwane Automotive Special Economic Zone used the time to provide insights into what it takes to build a successful special economic zone in South Africa. The delegation, organised by the Trade and Industrial Policy Strategies (TIPS), undertook a community of practice visit to Africa’s first automotive city on 12 March 2025, where they engaged with the TASEZ executive team, led by CEO Dr Bheka Zulu. The visit allowed for the sharing of knowledge and learnings from TASEZ, as a newcomer to the SEZ space in South Africa. “What makes us unique is that our core focus is in the automotive sector, and that’s where we’ve made an impact,” Dr Zulu said. The automotive industry is an important contributor to the country’s economy, with more than 500 000 employed across its value chain. The community of practice process, which is facilitated by TIPS, aims to enhance best practices in relation to the implementation of industrial policy across government. The process is also used to build a more open and safe space for sharing experiences and learnings concerning industrial policy. Departments involved in the community of practice include the Presidency; the Department of Planning, Monitoring and Evaluation; National Treasury; the Department of Trade, Industry and Competition; the Department of Public Enterprises; the Department of Mineral Resources and Energy; the Department of Small Business Development; and the government organisations related to science, technology and innovation. About TASEZ Known as Africa’s first automotive city, TASEZ is a relatively new SEZ kid on the block, with the ability to punch above its weight. The SEZ was set up to boost South Africa’s automotive industry, drive investment in economic growth, create jobs and develop skills, alongside positioning the City of Tshwane, the Gauteng province, and the country, within the African and global trade environment. Established in 2020, Phase 1 of TASEZ’s development was galvanised by the need to expand the Ford Motor Company of Southern Africa’s production from 160 000 a year to 200 000. Ford’s component manufacturers are based in the SEZ, along with the Ford Frame plant. With a deadline to produce the next generation Ford Ranger within 18 months, TASEZ became the fastest SEZ developed from scratch in South Africa. It had 11 operational investors in less than two years. “Right now, 720 cars are produced every day because of what we’ve created in this zone,” Dr Zulu said. Driven by commitment Answering the reason why the TIPS team visited TASEZ was easy: establishing Africa’s first automotive city was about turning a vision into reality. “TASEZ has been able to design a world-class automotive manufacturing hub providing a conducive environment for investors, where they can harness their potential of economic growth,” said Dr Zulu. Ford had an investment ready and waiting, with a tight deadline and alternative locations, while South Africa needed the investment to drive industrialisation and economic transformation. The economic climate at the start of the project could not have been worse, with a global downturn amidst a pandemic, businesses closing their doors, jobs being lost, borders closing and the global focus on fighting an ever-evolving virus. Despite all of that, a team was put into place, each member with a role to play in the bigger picture of developing from scratch a dedicated automotive special economic zone made up of Ford component manufacturers. TASEZ showed the country – and the world – South Africa has what it takes to deliver a complex internationally recognised project that delivers on the mandate set out in the National Development Plan of tackling the triple challenges of poverty eradiation, social and economic transformation and creating jobs. Phase 1 economic impact Turning the policy set out in the Special Economic Zones Act into reality, TASEZ supports inclusive economic participation by broadening participation to include small, medium and micro enterprises (SMMEs) and promote skills development and technology transfer. During the development of its Phase 1, TASEZ made a significant economic impact on the local economy, on the provincial economy and on the country’s economy. “TASEZ contributed 1% to the national GDP (gross domestic product during Phase 1,” Dr Zulu notes, adding that he envisages doubling that number through the development of Phase 2. In Phase 1 TASEZ spent R1.7-billion on construction procurement from SMMEs – 43% of the total construction budget, well above the national target of 30%. Some 229 SMMEs benefitted, with 6.2% of the procurement spend going to women-owned businesses, 18% to youth-owned businesses, and 2% to people with disabilities. The SMME beneficiaries are mainly based in the neighbouring communities of Eersterust, Mamelodi, and Nellmapius. In addition, 5 500 jobs were created in construction, with 18% of the jobs going to women, 60% to youth, and 0.86% to people with disabilities. The SEZ also created 3 311 permanent jobs, with 32% going to women, 65.47% to youth, and 0.83% to people with disabilities. Concluding the visit to TASEZ, the TIPS team noted: “The visit provided some important insights for government officials as to how policy translates into reality and practice.”

TASEZ and NAACAM sign a Memo of Agreement with a special focus on training

News / By Jenny Tennant

By Mandla Mpangase Forming a significant partnership in the automotive manufacturing sector, the Tshwane Automotive Special Economic Zone (TASEZ) has signed a memorandum of agreement with NAACAM (the National Association of Automotive Component and Allied Manufacturers). The key areas of focus are around skills development and training, supply, small medium and micro enterprise (SMME) support, localisation and innovation. TASEZ CEO Dr Bheka Zulu referred to the signing of the memorandum of agreement as a milestone for Africa’s first automotive city, adding: “This must be a living document.” The two parties have a synergy that will help transform the automotive manufacturing sector in tangible ways. “This partnership is one that we’ve been speaking about for some time, but I think it’s a really concrete and focused one for us,” said NAACAM CEO Renai Moothilal. TASEZ was established to promote employment growth and productivity, contributing to South Africa’s socio-economic development and competitiveness, while NAACAM is recognised as the voice of the South African automotive component industry both domestically and internationally. “NAACAM, as you know, is the mandated voice of auto component,” said the organisation’s CEO Renai Moothilal. NAACAM, as a member-driven organisation, is positioned at the forefront of industry leadership, representation, and stakeholder engagement for automotive component manufacturers. “We also are excited about the opportunity to partner with yourselves on areas around export market development, township economy revitalisation, and, of course, wider industry events and other engagement platforms,” Moothilal said. The TASEZ hub accommodates mainly automotive component manufacturers, but not exclusively so. However, most of the tenants in TASEZ belong to NAACAM. Dr Zulu noted: “This is a great moment because we, as TASEZ, stand for the people; creating jobs, adding economic value, and skills development.” Dr Zulu pointed to the many strategic partnerships TASEZ has. “We stand for economic growth for Tshwane, for the province and for the region. We stand for economic growth for the country and for the continent.” As a special economic zone (SEZ), TASEZ is part of the 240 plus SEZs in Africa. “It means we are a continental player.” TASEZ is also part of the 5 000 plus SEZs across the world. The SEZ is in a position to open avenues and engagements with different stakeholders from an African footprint. “We are about facilitating trade and investment, and you are a partner that produces components that are needed by the industry, by the continent, by the world,” Dr Zulu noted. Africa, he added, is a big market. “If you look at the African continent, with its population sitting at 1.3 billion, that’s an area where you can make an impact, because all your components will fit into the livelihoods of people on a daily basis.” As its Phase 2 rolls out, TASEZ is looking to offer a diversity of appropriate land uses and other economic activities. Of particular importance to TASEZ’s Phase 2 development is supporting black industrialists and small, medium and micro enterprises (SMMEs). In doing so TASEZ is also focused on developing programmes geared to providing skills for both the needs of the industry and those of the communities surrounding the project. It is with this in mind that the SEZ has set up a training academy, part of making sure Phase 2 delivers on becoming a centre of excellence for the industry. “This is our second passion,” Dr Zulu. On 5 March 2025 the two organisations agreed to collaborate in areas of special interest, with a particular focus on transforming the economy. The memorandum of agreement covered a wide-range of issues, including: The concept of localisation is of particular importance to TASEZ and NAACAM. “Not only do we want to see greater traction in reports, but we want to see it unfold with greater component production, especially in a facility such as the one that you manage,” Moothilal said. “That is why we are so passionate about having government policies and programmes and facilities such as TASEZ, which ultimately supports competitiveness of the whole value chain and then grows localisation.” Dr Zulu expressed his delight at having a partner that also focuses on innovation. “Innovation is one of the things we drive. Research and development is a stumbling block for many SMMEs, so we want to come into research and development.” TASEZ was busy setting up a research chair with this in mind and is working with the Tshwane University of Technology and the CSIR (Council for Scientific and Industrial Research) to do so. “We want to see innovation, change and global competitiveness,” Dr Zulu said. “For us, we see our collaboration as something that talks to our long-term impact – the socio-economic impact we are hoping to make here in the city, nationally and internationally,” said Dr Zulu.

TASEZ and parliamentary committee talk localisation and stimulating manufacturing

News / By Jenny Tennant

By Mandla Mpangase The state of the automotive sector took centrestage during a visit by the portfolio committee on trade, industry and competition to the Tshwane Automotive Special Economic Zone (TASEZ) at the end of February 2025. TASEZ welcomed the committee to the special economic zone on 27 February 2025. The Department of Trade, Industry and Competition (dtic) is one of TASEZ’s key shareholders, so the oversight visit was greatly appreciated. “This is an important engagement,” CEO Dr Bheka Zulu noted, where the role of the automotive manufacturing sector and SEZs can be interrogated in depth. South Africa’s automotive sector currently contributes 5.3% to the GDP, however, it is facing challenges and seeing a 3% decline and facing stiff competition from the markets in China. The committee, chaired by Mzwandile Collen Masina, raised the need for a comprehensive industrial policy to transform South Africa’s economy, with a particular focus on localisation and stimulating local manufacturing. The TASEZ executive team, led by chairperson Lionel October and CEO Dr Zulu, provided the committee with insights into the progress of Africa’s first automotive city, including its economic impact both locally and nationally. The committee was told that TASEZ was a newcomer in terms of South Africa’s SEZs, set up in an innovative and unique way: supported by all three tiers of government. Along with the dtic, the Gauteng Province and the City of Tshwane contribute towards the success of TASEZ. TASEZ, in the capital city of Tshwane, sits in the logistics crossroads of the country, reaching east and west, north and south, with access to the neighbouring states as well as globally through rail and port connections to the Durban Port. The SEZ is also supporting the creation of a rail link to Gqeberha, in the Eastern Cape. “What makes us unique and special is that our core focus is in the automotive sector, and that’s where we’ve made an impact,” Dr Zulu said. The automotive industry is an important contributor to the country’s economy, with more than 500 000 employed across its value chain. “TASEZ has been able to design a world class automotive manufacturing hub providing a conducive environment for investors, where they can harness their potential of economic growth,” the CEO said, adding that the contribution to the GDP from within the hub was 1%. TASEZ’s Phase 1 economic impacts: Ford, the anchor tenant of TASEZ, has managed to expand its production by 40 000 units a year, up from 160 000 to 200 000. “What this means is that one car is produced every minute because of the components manufactured in our hub. By the end of today, more than 720 cars will have been manufactured.” Transformation of the economy is crucial to the committee. As portfolio chairperson, Masina, said: “We have to ensure there is real transformation in South Africa.” All involved agreed that there is a need for innovative ideas that could change the course of development in South Africa. A committee member noted: “We have got to invest in building black industrialists.” The committee also discussed the need for a comprehensive industrial policy to transform South Africa’s economy, focusing on localisation and stimulating local manufacturing. The targets set in the South African Automotive Master Plan 2035 featured strongly in the discussions; with the aim of increasing South Africa’s global automotive manufacturing footprint to 1%, increasing the local content in South African manufactured or assembled vehicles to 60%, doubling employment in the automotive value chain, improving the industry’s competitiveness to that of leading international competitors, the transformation of the industry, and deepen the value addition within the automotive value chains. Masina noted that the Black Economic Empowerment scorecard currently in use, does not effectively promote real transformation. The two teams spoke about shifting the focus from Level 1 status to ownership and control. Concerns were also raised about the current tariff regime’s impact on local growth and the need for innovative strategies to support black industrialists. The committee emphasised the importance of aligning incentives and legislation to foster local industry development. “How do we create our own original equipment manufacturers without over-reliance on foreign direct investments? We’ve got to stimulate our economy through direct investment in this country,” a committee member observed. The discussion also highlighted the need for skills development, job creation, and the role of SEZs and SMMEs in driving economic growth within the automotive manufacturing sector. The development of TASEZ’s Phase 2 provides some answers to the questions on skills development, job creation and support for SMMEs. Phase 2 will expand the SEZ and attract an investment of R6.1-billion from private sector investment, and R3.9-billion from government partnerships. This phase will see the creation of 6 150 jobs, and, like Phase 1, SMME procurement spend has been ringfenced to the amount of R1.1-billion. Its particular focus is on including black industrialists into the SEZ. A key feature in Phase 2 is the setting up of a centre of excellence that will answer to the growing need to upskill, reskill and prepare South Africa and its communities, for the advancement of technology. With the move to NEVs, new skills and a new way of doing business will be required.

TASEZ launched Phase 2 ahead of hosting SOPA 2025

News / By Jenny Tennant

By Mandla Mpangase Africa’s first automotive city, the Tshwane Automotive Special Economic Zone (TASEZ) marked a significant milestone with a sod-turning ceremony, unveiling Phase 2 of its development, prior to hosting the 2025 State of the Province Address. This event, held on 23 February 2025, underscored TASEZ’s role in Gauteng’s economic growth and job creation strategy. On a small, cleared patch of land, three yellow earth-moving excavators raised their buckets in salute at the arrival of Gauteng Premier Panyaza Lesufi. The premier joined the shareholders and executives of TASEZ to ceremonially turn the soil to signify the start of development. Lesufi was joined by the TASEZ chairperson Lionel October, and CEO Dr Bheka Zulu. Others in attendance at the event included: TASEZ board members Susan Mangole and Vuyo Zitumane; the CFO Rebecca Hlabatau; the Speaker of the Gauteng Provincial Legislature Morakane Mosupyoe along with the Deputy Speaker Nomvuyo Mhlakaza-Manamela; Gauteng Provincial Legislature Chair of Chairs Rev Dulton Adams; the City of Tshwane’s Deputy Mayor Eugene Modise; President of the Ford Motor Company of Southern Africa Neale Hill; and Ford’s Corporate Transformation Manager for South Africa Esther Buthelezi. The small gathering belied the significance of the moment: the youngest of South Africa’s special economic zones was growing up. Zitumane told the gathering that Phase 2 of TASEZ is set to attract R6.1-billion in private sector investment, a crucial injection into the province’s economy, and will create more than 6 000 jobs in construction and permanent employment. In addition, like in Phase 1, Phase 2 will see an investment by TASEZ into small, medium and micro enterprises of R1.1-billion. Most importantly, Phase 2 also sees the creation of a centre of excellence for the automotive manufacturing sector, with the TASEZ Training Academy providing skills for the future, including for the emergence of new energy vehicles. Lesufi emphasised the transformative impact of these developments: “This is real economic transformation in action, where factories rise, businesses grow, and communities thrive.” TASEZ is solidifying its position as a key driver of Gauteng’s economic vision. The zone’s focus on automotive manufacturing and innovation aligns with the province’s broader strategy to boost economic growth and address unemployment. With Phase 2 underway, TASEZ is poised to further enhance its contributions to the city’s, the province’s and the country’s economy, solidifying its status as a vital economic hub.