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A key lesson from the 2025 G20 Summit: Industrialisation must power SA’s economic growth

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As South Africa concludes its historic G20 Presidency, the first to be hosted on African soil, a clear message has emerged: the world is ready to recognise Africa as a central engine of shared prosperity, writes the Chairperson of the Tshwane Automotive Special Economic Zone, Maoto Molefane. We must make the most of the momentum. On the weekend of 22 and 23 November 2025, the G20 heads of states gathered in Johannesburg to endorse commitments that speak directly to the continent’s long-standing aspirations: equitable development, sustainable industrialisation, resilient economies, and fair participation in global trade. For South Africa, and for advanced industrial platforms like the Tshwane Automotive Special Economic Zone (TASEZ), this moment is far more than just a diplomatic symbolism, it is about the acceleration of economic growth to combat poverty and inequality, with industrialisation serving as a key driver of inclusive growth, job creation, and global competitiveness. The G20 2025 mandate President Cyril Ramaphosa’s closing message from the G20 Summit underscored the stakes. South Africa’s development needs – jobs for young people, robust infrastructure, energy security, thriving export industries – require global stability, inclusive growth and a level playing field. The G20 outcomes align directly with South Africa’s industrial ambitions: A new global approach to critical minerals ensures that mineral-rich countries like South Africa benefit from beneficiation at home – a key component of the localisation drive of the South African Automotive Masterplan 2035. Commitments to climate finance strengthen the foundation for a just energy transition that protects workers, communities, and industrial capacity – ensuring that South Africa becomes a sustainable and resilient country based on a green economy. Debt relief discussions aimed at freeing the liquidity of developing nations, thus enabling them to invest in critical infrastructure, skills development programmes and innovation – all of which are essential inputs of industrial expansion. Support for disaster-resilient economies, safeguarding industrial zones and supply chains from climate-related shocks. These are not abstract policy wins. They reshape the environment in which industrial zones like TASEZ operate: they unlock space for growth that is sustainable, technologically advanced and globally aligned. As President Ramaphosa said: “Together, we must accelerate progress towards the 2030 Sustainable Development Goals and the Pact for the Future. We have laid the foundation of solidarity. Now we must build the walls of justice and the roof of prosperity.” Industrialisation as an engine for growth Given that the 2025 G20 provided a strong voice for Africa, it must be noted that the continent has anchored the world’s supply chains for far too long without capturing its share of industrial value. “The greatest opportunity for prosperity in the 21st century lies in Africa,” President Ramaphosa said in his closing remarks. He described the continent as a driving force for future growth, innovation, mineral beneficiation, climate resilience and energy transition.  The 2025 G20 Declaration calls for structural reforms, investment mobilisation, and digital transformation that place industrialisation at the heart of global development priorities. What this means for South Africa is that the country must build, manufacture, innovate, export, and compete. This is the work TASEZ – Africa’s first automotive city – was created to do. Based in the country’s capital city, TASEZ is demonstrating what coordinated industrial policy can achieve: World-class manufacturing platforms supporting global automotive brands and their suppliers; Localisation programmes that deepen South Africa’s manufacturing base and stimulate small business participation; Green industrial infrastructure that positions the zone for the new energy and electric vehicle and hydrogen and solar economies; and Skills programmes that equip young people for advanced manufacturing and digital production. TASEZ is not just an industrial hub, it is a catalyst for economic resilience and can serve as a model for the equitable, future-oriented development highlighted in the G20 Declaration. Beneficiation is a must The global commitment to fair critical mineral development provides South Africa with a generational opportunity: to build integrated value chains centred on electric vehicles, battery manufacturing, renewable energy components and advanced materials. As the President noted, minerals must become “a source of prosperity and sustainable development in the countries that produce them”. This aligns perfectly with South Africa’s automotive transition strategy and TASEZ’s expansion into green manufacturing, downstream processing and high-value production clusters. The President called the 2025 summit the People’s G20, characterised by the engagement of business, labour, youth, scientists, mayors and civil society. This spirit of collaboration is the very essence of effective industrialisation and special economic zones implementation/development, both of which rely on coordinated action between government, investors, communities and workers. South Africa’s G20 success, combined with improving economic indicators and growing confidence in our reform programme, demonstrates that the country is ready for a new industrial chapter based not on extractive development, but a shared value, skills development, innovation, and sustainable manufacturing. Looking ahead As global leaders return home, the world’s attention shifts from diplomacy to delivery. For TASEZ, the task is to translate the political momentum of the G20 into practical industrial capacity. The Johannesburg G20 summit marks a critical turning point for global industrialisation, especially for Africa. The commitments around infrastructure, climate transition, and inclusive development resonate deeply with our vision to build a sustainable, high-tech automotive hub that benefits local communities, talents, and small industrial players. However, for this to be more than rhetoric, the world must translate pledges into concrete investment, local value-chain development, and support for medium, small, and micro enterprises. The timing could not be better, as TASEZ ratchets up its Phase 2 developments. TASEZ will be focused on: Attracting green manufacturing investments; Accelerating automotive and component localisation; Supporting small business entry into advanced value chains; Building human capital for future industries; Expanding export-ready industrial infrastructure; and Driving the beneficiation of minerals linked to electric vehicle and battery manufacturing. The G20 Summit has shown the world what South Africa can achieve when united by purpose. As President Ramaphosa said: “Let us move forward together, demonstrating to the world that we have the capacity to confront and overcome the world’s challenges. Through partnerships

How South Africa’s G20 Presidency can accelerate industrial growth through TASEZ

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When South Africa welcomes the world to the G20 Leaders’ Summit this month, our nation will experience one of the most profound moments of global visibility since the country’s dawn of democracy, writes the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu. As heads of state, global CEOs, investors, and development partners converge on our shores for the G20 Leaders’ Summit on 22 and 23 November 2025, the world’s gaze will fall not only on our political leadership, but on our economic capability, our industrial resilience, and our readiness to take our place in a rapidly shifting global economy. For those of us tasked with building South Africa’s next-generation industrial platforms, this moment is far more than a diplomatic milestone. It is an opportunity to reshape the country’s industrial trajectory for decades to come. And for the Tshwane Automotive Special Economic Zone (TASEZ), it is a chance to demonstrate that South Africa can compete, innovate, and lead in one of the world’s most dynamic sectors: automotive manufacturing. South Africa in the global spotlight The G20 is not just a gathering of 20 world leaders. It is a year-long platform where global investment sentiment is shaped, where development financing agendas are debated, and where emerging markets like South Africa position themselves as credible partners in the global value chain. It has already triggered accelerated investments in infrastructure, logistics, and city improvement projects, particularly in Gauteng. This matters for industrial zones like TASEZ. Better roads, more reliable energy, and upgraded transport networks are the lifeblood of manufacturing competitiveness. But the physical changes are only part of the story. The more significant shift is reputational. A successful G20 presidency can strengthen investor confidence, deepen trust in our economic institutions, and position South Africa as a stable, future-oriented industrial hub. That alone makes this moment essential for TASEZ and the broader automotive sector. Global industrial priorities What excites me is how closely South Africa’s G20 priorities align with TASEZ’s mission. The 2025 agenda focused on: Financing the just energy transition Inclusive industrialisation Sustainable development The role of critical minerals Mobility and climate resilience These are not abstract ideas, they cut to the heart of the automotive industry’s transformation. As highlighted by the recent New Energy Summit held in Gauteng in October 2025, global value chains are pivoting to green mobility, clean manufacturing, and Africa’s integration into supply networks. TASEZ is uniquely positioned in this transition. We are already home to one of Africa’s most dynamic automotive production ecosystems, and we are preparing for a future that includes electric mobility, deeper localisation, and expanded supplier development. If South Africa leverages its G20 presidency effectively, we can secure the policy tools, partnerships, and financing mechanisms needed to accelerate this transition. Showcasing South Africa’s successes The world will not judge us by speeches alone. They will judge us by what we build. This is why TASEZ intends to use the G20 window to demonstrate what coordinated public–private investment can achieve. As the fastest-growing automotive special economic zone (SEZ) on the continent, we have a compelling story to tell — one of job creation, skills development, township inclusion, supplier growth, and industrial expansion. We should be bold in inviting foreign delegations, development finance institutions, and global OEMs to see the zone firsthand. Site visits, technical tours, and bilateral industry roundtables can turn interest into investment. The G20 gives us a once-in-a-generation platform to do this at scale. The G20 Leaders’ Summit will bring renewed attention to Africa’s role in the global economy. For TASEZ, this is an opportunity to expand its influence beyond South Africa’s borders. Through stronger relationships with the Southern African Development Community (SADC) and African Union partners, we can position TASEZ as a catalyst for regional automotive value chains — a future where components made in Botswana, Mozambique, Zambia, or Zimbabwe flow seamlessly into assembly lines in Tshwane. More than symbolic South Africa must convert visibility into tangible improvements in industrial competitiveness. We must guard against the tendency to treat major summits as symbolic rather than strategic. Investment is not secured by banners, speeches, or social media clicks. It is secured by credibility, efficiency, transparency, and delivery. For TASEZ, this means: strengthening governance; accelerating infrastructure development; ensuring investor facilitation is world-class; and delivering certainty around timelines, incentives, and operations. The 2025 G20 Summit is a strategic opportunity for South Africa to reposition itself as the continent’s industrial leader, providing a platform for government, business, and development partners to act with unity. For TASEZ, it is a chance to amplify what we already know: that South Africa can build globally competitive manufacturing hubs; that our people can produce world-class automotive products; and that, with the right partnerships, we can transition into the mobility future with confidence. The world is coming to South Africa. Will we use this moment to shape our industrial destiny? We at TASEZ intend to do just that.

Auto industry continues to drive investment, jobs and innovation

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

Collaboration is needed to gear up to new auto future

Thought leaders / By

If South Africa is to transform the automotive sector as spelt out in the South African Automotive Master Plan 2035, the industry must take decisive action on a wide range of issues, including decarbonisation, writes TASEZ CEO Dr Bheka Zulu. As the country’s special economic zone (SEZ) focused primarily on the automotive industry, the Tshwane Automotive Special Economic Zone (TASEZ) is ready to play a key role in moving the transformation efforts forward. While South Africa has set itself the task of zero net emissions by 2050, many of the country’s automotive export markets have set stringent targets over the next decade and the original equipment manufacturers (OEMs) are gearing up for the change. No doubt, this will be one of the main talking points at this year’s South African Auto Week, taking place in Cape Town from 15 – 18 October 2024. The theme for this year’s event is Reimagining the Future Together: Celebrating 100-Years of automotive heritage, passion, resilience and ingenuity. Among the topics up for discussion are “Decarbonising the auto sector”, “A path to net zero”, and “SA NEV (new energy vehicle) transition: Policy choices and support instruments”. It is against these current discussions that input from research by Deloitte, Automotive Pathways to Decarbonisation, becomes both prophetic and doable. The report, that “by 2050, automakers are expected to reduce CO₂ emissions by 90%”. It goes on to note that “to reach these aggressive targets, however, the entire value chain will need to be decarbonised”. The Deloitte report states: “Despite ongoing advances in the fuel efficiency of vehicles with internal combustion engines, the automotive sector’s pathway to decarbonisation requires accelerated adoption of electric vehicles (EV). Beyond the regulatory push to reduce tailpipe emissions, this shift is also being driven by consumer demand. In response, automakers around the globe have been ramping up EV production and sales.” However, the sector is faced with the high costs of expanding EVs into the market place, inconsistent regulatory frameworks globally, insufficient access to green inputs such as batteries and steel, a lack of competitive green business models and strong sustainable strategies, the report adds. But all is not lost. “By quickly ramping up EV production, increasing usage of renewable energy, and establishing material circularity, automakers can enhance the industry’s ability to meet the Paris Agreement’s science-based emissions reduction targets.” Deloitte suggests OEMS and component producers adopt circular business models and transition clean energy in both production plants and usage by prioritising sustainability when extracting and processing basic materials, producing vehicles and their parts, and decommissioning vehicles at their end-of-life. “To achieve this target state, the sector will need to eliminate traditional sector boundaries, involve suppliers and customers in the solution, and foster strong cross-sectoral collaboration.” This is where TASEZ is well-equipped to play a significant transformative role as an SEZ. Its strength is in building strong strategic partnerships, supporting current and potential automotive manufacturing tenants in creating green facilities that incorporate the latest technologies, and helping to train a workforce familiar with future trends within the industry. TASEZ’s facilities already embrace green energy solutions, using battery and solar elements. In addition, the SEZ’s close ties with local industry associations, training institutions and industry role players ensure that investors are provided with access to the latest technologies. Because TASEZ is based in the City of Tshwane, it is surrounded by academic, innovative and technological institutions, which are more than capable of supporting tenants in terms of research and development. It is only through partnerships and collaborative action across the entire value chain that a strong decarbonised sector will be built – and there is not too much time left to do so.