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TASEZ Training Academy lauds new graduates

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With the manufacturing sector in constant change as the Fourth Industrial Revolution takes hold, the Tshwane Automotive Special Economic Zone, through its’ training academy, is making sure that workers are equipped for this future. The TASEZ Training Academy celebrated the graduation of 163 learners, presenting them with certificates of achievement on Thursday, 15 August 2024. With the graduates demonstrating exceptional dedication and skill in their training, the event was seen as an opportunity to recognise the learners’ hard work and commitment. The celebration showed the special economic zone’s commitment to providing much-needed skills development in a rapidly changing automotive industry. “Now is the time to lead a skills revolution in this country,” says chairperson, Lionel October TASEZ, adding that the TASEZ’s academy was set up to close the skills and technology gap. “As articulated in the South African Automotive Master Plan, the industry needs to be expanded, becoming more inclusive,” says CEO, Dr Bheka Zulu, adding that “a skilled, agile and adaptable workforce is essential to achieve this.” TASEZ, Africa’s first automotive city, is ideally placed to make an impact on inclusive jobs creation and upskilling. “TASEZ is delivering on its vision to be the benchmark for special economic zones in South Africa while contributing to the growth of the automotive sector,” says Dr Zulu. As the automotive industry is gearing up for production of new energy vehicles and for exports to markets that have set targets to reach a carbon neutral environment, South African manufacturers will need to move swiftly to embrace Fourth Industrial Revolution skills. It is against this backdrop that the Automotive Master Plan has set a number of ambitious targets to be met by 2035, including: The automotive industry is one of South Africa’s most important economic sectors, contributing 4.3% to the country’s gross domestic product. The industry is also the country’s fifth largest export sector accounting 18.1% of total exports. However, the sector – as the country – faces the intense challenge of unemployment alongside an unskilled labour force. Figures are disheartening, with Q2 numbers indicating the highest unemployment rate since 2022. Currently South Africa’s official unemployment rate stands at 33.5.9% for the second quarter of 2024, up from 32.9% for the first quarter of 2024, according to StatsSA. The expanded unemployment rate, which includes those who are no longer actively looking for employment, increased to 42.6%, up from the first quarter figure of 41.9%. These numbers represent the 8.4 million people who are now unemployed, with more than 76% of those having been without a job for more than a year. A focus on skills development and training has never been so important, notes Dr Zulu. “Skills development has the potential to turn the tide against unemployment,” he adds.

TASEZ CEO draws from the past to build a future of self-respect and dignity

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On this Mandela Day Dr Bheka Zulu, the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), reflects on the legacy left by Tata Nelson Mandela in building a South Africa that truly reaches its full potential. Today, 18 July, we make time to reflect on the profound impact Nelson Mandela had on our country, and indeed, the world. His wise words flowed in many directions, sharing his experiences, teaching his philosophies, and touching wide and diverse topics. But none of these words were more important that those regarding the youth of this country. Speaking at a rededication of a school in the Eastern Cape in 1995, Madiba said: “Our children are the rock on which our future will be built, our greatest asset as a nation. They will be the leaders of our country, the creators of our national wealth, those who care for and protect our people. “But if they are to take on this great responsibility, the rich potential in every child must be developed into the skills and the knowledge that our society needs. Education is the key to that process. It is also a door which opens from every village and city onto our larger society and indeed onto the whole world.” It is heartbreaking to look at the challenges facing the youth right now; with low economic growth, high unemployment, and lingering poverty and inequality. That South Africa’s economy has been constrained is nothing new, with the Reserve Bank’s growth expectations for 2024 and 2025 sitting at 1.2% and 1.3% respectively. These rates are not nearly enough to help the country grow jobs and create business opportunities for small, medium and micro enterprises (SMMEs). The statistics are harsh, with young South Africans bearing the brunt of these issues. Unemployment among the youth – people between the ages of 15 and 34 – totalled 4.9 million in the first quarter of 2023, according to figures released by Statistics South Africa in May. The youth unemployment rate sits at 46,5%. According to Statistics South Africa (Stats SA) “South Africa, like many countries globally, grapples with the challenge of youth unemployment. This is supported by statistics indicating a 45,5% unemployment rate among young individuals (aged 15-34 years), in contrast to the national average of 32,9% in the first quarter of 2024.” The automotive industry plays a strategic role in growing South Africa’s economy. In 2021 it contributed 4.3% to South Africa’s GDP, with the export of vehicles and automotive components reaching a record R207.5 billion – equating to 12.5% of South Africa’s total exports. Becoming globally competitive and transformed But much more is expected from the sector. The South African Automotive Masterplan’s (SAAM’s) vision is to create “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”. Targets set include: It is against this background that TASEZ needs to stand up and play its part in growing the automotive industry alongside helping young South Africans develop the skills and experience they need to gain work in the ever-evolving sector. To quote Mandela, from a President’s Budget Debate in Parliament in 1996: “Jobs, jobs and jobs are the dividing line in many families between a decent life and a wretched existence. They are, to many, the difference between self-esteem and helplessness.” Beyond job creation, the establishment of SMMEs across the country is critical; driving growth, providing employment opportunities, and opening new markets. South Africa sets a great store on the SMME sector as a driver of economic development and growth. In the National Development Plan 2030, SMMEs are identified as having the potential to contribute between 60% to 80% to the country’s gross domestic product growth and employ 90% of the workforce. The NPD, which has set a target of 24 million people in employment by 2030. Of that, 21.6 million people would be in SMMEs. Youth development is a key component of TASEZ’s business case, with our SEZ helping boost the economies of our neighbouring communities of Eersterust, Mamelodi and Nelmapius, providing job opportunities and training programmes for young South Africans and emerging SMMEs. TASEZ’s Phase 1 development saw 3 244 permanent jobs in the automotive manufacturing sector created, with a further 5 071 jobs in construction. SMME procurement spend totalled R1.7-billion. As the SEZ continues to grow, more job will arise, along with SMME procurement opportunities. In addition, TASEZ is planning to create an automotive incubation programme and focus on skills development in support of Tier 1 and Tier 2 suppliers along with expanding the hub and creating 3 000 new jobs. What we need to be aware of is that these are not merely numbers and statistics to us – each job created or project supported represents real families and community members living secure lives with dignity and self-respect. Picking up the baton from Madiba, we know that we have to be daringly ambitious and resolutely committed to contributing our South Africa’s growth, expanding beyond our borders to impacting regional and African development.

MEC tours TASEZ, sees firsthand how SEZs can help accelerate reindustrialisation

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Special economic zones (SEZs) are ideally placed to help accelerate the country’s much-needed industrialisation, securing foreign direct investment that can be used to create jobs, develop infrastructure and boost local economies. Africa’s first automotive city, the Tshwane Automotive Special Economic Zone, is one of these key drivers. SEZs are viewed as key instruments to making South Africa an attractive option for foreign direct investments. SEZs are important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation. Tuesday, 16 July 2024 saw the Gauteng MEC for economic development and treasury, Lebogang Maile, visit three of the 12 factories currently based in the SEZ – Ford Frame, Feltex, and Sodecia – to see for himself what the zone provides. TASEZ was established through a committed investment and against a very tight deadline – and during Covid 19 – setting the bar for the development of new SEZs in South Africa. From its beginnings in the dusty veld on the outskirts of Silverton in 2020, to seeing the first cars come off the production line in November 2022, TASEZ has shown just what can be achieved with a solid investor and strong leadership from all three tiers of government. Looking to expand, Ford Motor Company of Southern Africa committed to a R16-billion investment to produce an extra 40 000 vehicles a year, moving from 160 000 units to 200 000 units annually. Supporting Ford’s investment was the political will to drive the project and ensure its success. All three tiers of government become equal shareholders, each with clearly defined roles. The factories based in the SEZ all produce components for Ford, with a focus on just-in-time and just-in-sequence systems. The first phase of TASEZ’s development saw the creation of 3 244 permanent jobs within the zone, with more than 65% from the surrounding communities: 32% going to women and 65.4% by the youth. In addition, more than 5 071 construction jobs were created. “This is in line with the department’s objective of strengthening access into the economy for marginal communities,” Maile noted. “This brings the total of direct jobs created through SEZ to over 8 000 direct jobs resulting in more than 18 396 indirect jobs.” TASEZ CEO Dr Bheka Zulu said: “We are aware of the important role SEZs play in helping to accelerate reindustrialisation of our economic hubs.” He added: “TASEZ is well-placed to help create jobs, support our local communities and boost their economies, and share knowledge and skills.” TASEZ’s Phase 1 also saw 256 opportunities ring-fenced for small, medium and micro enterprises, totalling R1.7-billion in procurement spend. The SEZ is now focusing on its Phase 2 development, and embracing the challenges the South African automotive manufacturing sector faces, in growing the sector, creating jobs, providing access to skills development, ensuring materials and jobs are localised, and including the requirements need for the era of new energy vehicles (NEVs). Over the next two years, Ford will be investing an additional R5.2-billion for the production of the first-ever Ranger plug-in hybrid electric vehicle (PHEV).

‘Vision with action can change the world’

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It is fitting, in a month where the world remembers former president Nelson Mandela, that the Minister of Trade, Industry and Competition, Parks Tau, opened his budget vote address with a quote from Madiba: “Action without vision is only passing time. Vision without action is merely day-dreaming. But vision with action can change the world.” These words reverberate within the Tshwane Automotive Special Economic Zone’s core, sitting at the heart of the special economic zone’s (SEZ) ethos. Speaking in Parliament on 16 July 2024, Minister Tau noted that the words also echo the country’s aspirations to build a dynamic, industrial and globally competitive South Africa that is transformed, inclusive and equitable. This is “anchored on industrialisation, transformation, job creation and building a capable and developmental state”. The minister emphasised the importance of manufacturing-led growth. “Manufacturing creates jobs in upstream and downstream sectors,” Tau explained, adding that these jobs were typically permanent and paid decent wages, with workers able to access to skills development and career path opportunities. Instruments such as the South African Automotive Masterplan are crucial; with their focus on supporting localisation, increasing investment, and creating and retaining jobs. “We have industrial capabilities as a country,” he added. The Department of Trade, Industry and Competition (the dtic) would, in identified industries, work closely with relevant state-owned entities and industry to support local manufacturing of key products and to create jobs. Growing the export markets Of importance to TASEZ, is the fact that the minister identified the need to expand and improve exports. South Africa’s automotive sector already exports the bulk of the vehicles manufactured here. In May 2024, naamsa noted that “record high vehicle exports ensured that the automotive industry outperformed the rest of the manufacturing sector” last year.  “The export value of vehicles and automotive components increased by R43.5-billion, or 19,1%, from the R227.3-billion in 2022 to a record R270.8-billion in 2023, comprising 14,7% of total South African exports.” Naamsa noted the export performance included “record exports to all major regions, including the European Union, Africa, the Southern African Development Community, and North America”. Minister Tau pointed out that South Africa’s location at the tip of “the second-fastest growing region in the world”. To reduce a dependence on a small domestic market, “the dtic will implement new export measures, coupled with expanding the current measures and improving their effectiveness” and will work towards expanding its export footprint through BRICS+ (Brazil, Russia, India, China,Iran, Egypt, Ethiopia and the United Arab Emirates), the African Continental Free Trade Area (AfCFTA), the African Growth and Opportunity Act (AGOA) partnership with the United States, and the Economic Partnership Agreement with the EU. Turning to SEZs, the minister reminded parliament that the reason the country had set up SEZs was “to expand economic activity to under-developed parts of South Africa. There are many benefits to this including, creating jobs closer to where our people live and thereby reducing the cost burden poor people carry.” There was no logical or economic rationale for forcing people to live far from their families in increasingly crowded living spaces. “Spatial equity is therefore, a non-negotiable.” Referring to the 11 SEZs established so far, the minister noted: “These SEZs have generated investments amounting to R19.6-billion. In addition, these SEZs provide an on-going revenue stream to national government through ongoing corporate, PAYE and VAT payments. These contributions to tax revenue across over 100 firms located in SEZs far outweigh the initial establishment costs.” Like TASEZ, which is located between Eerstrust, Mamelod and Nelmapius, South Africa’s industrial parks are often located in or adjacent to townships. And these industrial parks provide jobs and incomes to people from the neighbouring townships. “We, therefore, encourage private-sector participation in the industrial parks, in order to assist to improve operations and facilities, and encourage private sector investment.”

TASEZ greets new Gauteng MEC, views operations

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Gauteng’s newly-appointed member of the provincial executive council (MEC) for economic development and treasury, Lebogang Maile made time to the meet the Tshwane Automotive Special Economic Zone’s (TASEZ) executive team and familiarise himself with the special economic zone’s operations. Close relationships with strategic partners is vital to the SEZ, with the Gauteng government being one of the three government partners in TASEZ. As TASEZ chairperson Lionel October explained: “The establishment of Africa’s first automotive city was a pilot project of new integrated strategic partnerships to be used by SEZs in South Africa.” Central to its development is the three-tier partnership between national government that focuses on the high-level structure, the provincial government that provides funding for the infrastructure within the zone, and the local government that provides infrastructure such as roads and electricity into the zone. This catalysed the financial investment put into the project by the Ford Motor Company of Southern Africa as part of its plans to double the production of its vehicles in Silverton, City of Tshwane, by 40 000 units, to 200 000 units annually. The SEZ completed the first phase of its development in a mere 18 months – and during Covid-19 – using a R24-billion investment in setting up an automotive manufacturing zone that currently has 12 fully operational facilities and employs 3 500 people. MEC Maile, who met the TASEZ team, including CEO Dr Bheka Zulu and CFO Rebecca Hlabatau, on Friday 12 July 2024, is immersing himself in his extensive and economically critical portfolio. The Gauteng Department of Economic Development is tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng city region. And SEZs, as important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation, have an important role to play – they are key to making South Africa an attractive option for foreign direct investments. “Our special economic zones programme, supported by intensive investment promotion, will be utilised to accelerate the re-industrialisation of the Gauteng city region,” Maile said.

The TASEZ breakaway discussion team at the Tshwane Energy Summit 2024: the CEO of the AIDC Andile Africa, TASEZ's CEO Dr Bheka Zulu, the NAAMSA's chief policy officer Tshetle Litheko, and the co-founder of the Mobility Centre for Africa Vincent Radebe

TASEZ hosts vital and vibrant discussion on new energy vehicles

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New energy vehicles loom large in the discussions on the evolving automotive manufacturing landscape – but the time for the internal combustion engine is not yet over. Two experts from the industry discussed the important topics of whether the legacy original equipment manufacturers are being left behind by disruptive innovators like Tesla and BYD, and the new energy vehicle landscape in a South African context during a breakaway session at this year’s Tshwane Energy Summit on Thursday, 20 June 2024, held in Menlyn Maine, Pretoria. The breakaway session was hosted by the Tshwane Automotive Special Economic Zone, Africa’s first automotive city and an important player in the country’s automotive manufacturing sector. Introducing the session, TASEZ CEO Dr Bheka Zulu provided the insight into the new energy vehicle (NEV) landscape globally and locally. “We all know that the NEV space has been growing. In the last year, if you compare figures from the first quarter of last year, it grew by 8.7% – units that have grown from 1 665 to 2 220. And in the second quarter, that number grew to 3 042. These are the some of the figures that show the demand and the need for the sector to grow.” He noted a number of important milestones in the drive towards cleaner energy: the publication in 2023 of a White Paper on NEVs aimed at unlocking the potential of South Africa’s NEV market; the fact that 2024 marks a centenary of manufacturing in South Africa – and Ford is celebrating its 100 years in South Africa. Opportunities available in NEV space The NEV space is one that can open opportunities in unexpected ways, Dr Zulu noted, such as the “last mile” programmes that have rolled out across South Africa delivering goods to the consumers’ doors via scooters or motorbikes. This is particularly important in growing the township economy. Although a critical element, NEVs are not confined to passenger vehicles but will also impact public transport and freight and logistics, Dr Zulu said. South Africa exports the majority of its vehicles, so it needs to comply with the clean energy regulations set by it external markets. For example, Europe has set stringent regulations that have to be met by the automotive manufacturers: it will require 55% lower carbon-dioxide emissions from 2030, with a target of zero from 2035. Mobility Centre for Africa co-founder Victor Radebe delivered a thought-provoking talk asking are the legacy OEMs sleeping at the wheel in the face of disruptive innovation by front-runners such as Tesla and BYD. Using the work of academic and business consultant Clayton Christensen, Radebe dived into the concepts surrounding “disruptive innovation” noting that “it’s like a tidal wave that strips over established industries creating new markets, whilst leaving old ones in its wake.” Disruptive innovation starts humbly, often ignored or dismissed by established companies. But then it marches on, transforming the landscape and toppling giants, Radebe said. “Christensen’s The Innovators Dilemma explains why many established firms, despite their resources and expertise, find themselves in this predicament hesitating at the edge of innovation,” Radebe said, adding: “This is where legacy OEMs find themselves.” Rise of the NEVs The automotive manufacturing industry is currently experiencing a seismic shift driven by the electrifying rise of NEVs. “Legacy OEMs are finding themselves in the slow lane compared to speed stars like to Tesla and BYD.” This technological race is not just about who gets to the finish line first, but who can navigate the twists and turns of innovation without losing control, Radebe noted. One of the innovations of NEVs is that the manufacturers build most of their parts, whereas the biggest OEMs rely on a supply chain of multiple suppliers from across the globe. Radebe looked at the potential drivers for change: Another important element is that of the minerals required to make the batteries required by the NEVs. “If you look at the upstream supply chain, China controls the extraction of the of the raw materials. They control the processing of the raw materials.” The beneficiation of minerals is a hot topic in South Africa that will have to form part of a more in-depth negotiation. “The future outlook of the automotive industry will be shaped by those who dare to navigate the choppy waters of innovation in geopolitical, geopolitical uncertainties,” Radebe said. “Legacy OEMs need to embrace a bold strategy to protect their turf, whilst diving headfirst into the new technology and business models, partnerships, heavy investments in innovation, and a willingness to disrupt their own operations.” NAAMSA’s chief policy officer, Tshetle Litheko, brought the topic closer to home, discussing the NEV landscape and outlook in South Africa. NAAMSA represents the South Africa automotive manufacturing industry and the seven original OEMS in the country. NEVs, the next natural step Litheko noted that because of environmental pressures, the innovation and migrating towards NEVs is unavoidable – “it’s the next natural step”. South Africa currently produces 0.5% of the global production of cars. Through its South African Automotive Master Plan, it aims to produce 1% of the world’s cars by 2035. However, Litheko noted, the export markets that South Africa has are now looking to cleaner energy vehicles such as hybrids and EVs. So, the current production of vehicles with internal combustion engines will not be fit for purpose and South Africa will need to adjust its products accordingly. “That said, one of the biggest markets that we need to factor in is the 1.4 billion market in Africa – and that market is not about to migrate or evolve into these NEVs.” In the African market the production of cars is around two million, with South Africa producing a third of that. He then referenced India, with a similar population density to that of Africa, and pointed out that India currently produces almost eight million vehicles annually. “India is the biggest and fastest growing exporter of cars into South Africa (and by extension into Africa).” Taking a leaf out of India’s book, South Africa

TASEZ supports training in manufacturing

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The Tshwane Automotive Special Economic Zone’s (TASEZ) commitment to seeing young South Africans gain skills can be seen in the hub’s partnership in the Auvergne Skills Development Centre – a new training centre for young people in the furniture manufacturing sector. TASEZ and Auvergne Designs have signed a memorandum of understanding (MoU) to establish a strategic partnership, particularly in regard to skills training. “Young people hold the country’s economic future in their hands,” said TASEZ CEO, Dr Bheka Zulu. Skilled workers are critical to every sector within South Africa’s economy; being the primary drivers for industrialisation and economic growth. The MoU includes a number of areas where the partnership will be invaluable, including: All these elements will promote transformation within the automotive manufacturing sector, as expressed in the South African Automotive Masterplan (SAAM), which lists a number of objectives and goals the industry needs to see happen by 2035. Key goals in the SAAM are the localisation of labour and materials; encouraging access to the sector for previously disadvantaged businesses and communities; the embracing of new technologies; and the development of local and regional markets. The skills development centre was officially opened on 24 March 2024 by the MEC for Economic Development Tasneem Motara, who noted that the initiative “fosters employment opportunities within the furniture manufacturing sector”. Skills training can boost economic growth and change lives, Motara added. The curriculum of the training centre, based in Rosettenville, Johannesburg, covers a diverse range of skills ranging from upholstery to carpentry, from furniture design and making to building new ventures. The launch of the Auvergne Skills Development Centre also saw the first cohort of trainees begin their year-long course in upholstery. Along with the furniture refurbishment training, the group will also undergo training in new venture creation – a critical skill required for anyone wanting to start their own businesses, including SMMEs. As a partner, TASEZ stands ready to support youth development, unlocking access to workplace opportunities, providing mentorship, and encouraging local communities to develop their own businesses.

TASEZ, a case study in successful partnerships

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Integrated strategic partnerships are crucial in creating an enabling environment for potential investors; and the Tshwane Automotive Special Economic Zone (TASEZ) is a great example of this process. In a high-level exploratory meeting held at TASEZ on 14 March 2024, representatives from TASEZ, the United Nations Alliance for Sustainable Development Goals (UnASDG) Intergovernmental Organisation, South Africa’s National Planning Commission, and international businesses discussed the possibility of developing strategic partnerships, with the focus being on utilising TASEZ for this purpose. Central to the introductory discussions was how TASEZ had managed to establish Africa’s first automotive city in record time, all through the strong partnerships between the original equipment manufacturer (OEM) – Ford Motor Company of Southern Africa – and the three tiers of government. TASEZ chairperson Lionel October explained to the visitors how the special economic zone (SEZ) had completed the first phase of development in a mere 18 months – and during Covid-19; utilising a R24-billion investment in setting up an automotive manufacturing zone that has 12 fully operational facilities and employs 3 500 people. “This was a pilot project of a new integrated strategic partnership to be used by SEZs in South Africa,” October explained. It is a three-tier partnership between national government that focuses on the high-level structure, provincial government that provides funding for the infrastructure within the zone, and local government that provides infrastructure such as roads and electricity into the zone. Globally, successful SEZs, in China, Japan, and South Korea, for example, focused on modern, new industries and were based on entire cities, October noted. “South Africa, however, took a different approach, focusing on reindustrialisation in under-developed areas.” Under the leadership of CEO Dr Bheka Zulu, TASEZ unlocked the potential available in strategic relationships, opening an investor-friendly hub for OEMS and the manufacturers of automotive components. In addition, it laid the framework to engage with local communities, creating job opportunities for local small, micro and medium enterprises (SMMEs) and workers. Phase 1, for example, saw R1.7-billion spent on SMME procurement. This was done with TASEZ playing a significant role in answering the United Nation’s call to implement the Sustainable Development Goals (SDGs). TASEZ’s operations answer a number of the SDGs, particularly Goal 1 to end poverty, Goal 8 to provide decent work and economic growth, Goal 9 to build resilient infrastructure using innovative technology, and Goal 12 to ensure sustainable production patterns. During phase 1 TASEZ ensured that local community members were provided with economic opportunities; construction embraced green sustainable building materials and methods; and innovative technologies, including high-speed internet and green energy solutions, were made available to potential investors. TASEZ is now preparing to roll out phase 2 of the project – a mixed-use development, which will include incubator programmes to create opportunities for new, emerging suppliers for the automotive component manufacturing sector. Responding to the information shared by TASEZ, UnASDG ambassador Deacon Mathe described how the alliance was focused on making sure the UN’s SDGs became a reality in South Africa. The alliance focuses on monitoring, providing an analysis, funding, and support to members from all the countries represented in the UN. After the discussions, the group toured the facilities in TASEZ’s phase 1.   

Green TASEZ ready for investors

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Investors are crucial for the strengthening of South Africa’s economy, and the Tshwane Automotive Special Economic Zone (TASEZ) is ensuring it provides the best possible business environment for international automotive manufacturers and component producers. The manufacturing sector is one of the key drivers of the country’s gross domestic product, with the automotive industry providing direct links to the global market and local entrepreneurs. The special economic zone’s (SEZ’s) focus on attracting investment is in keeping with the South Africa Investment Strategy which aims to position South Africa as a preferred African investment destination, and in so doing, attempt to meet the National Development Plan target of 30% of gross fixed capital formation to GDP by 2030. The South African Investment Strategy aims to attract and facilitate quality foreign direct investment and domestic direct investment and ensuring the provision of such investment is well-coordinated and anchored by quality institutions and robust economic infrastructure networks. The national strategy plans to achieve this through: TASEZ is ideally positioned to answer the call of the investment strategy: it operates in a high priority sector – manufacturing; it offers green solutions to its clients; and is forward thinking in ensuring it embraces the latest technology available to ensure its premises are energy resilient and technologically advances. Known as Africa’s first automotive city, TASEZ is strategically located in the economic heart of the county and is able to offer unparalleled access to markets across Africa and beyond. With its base close to existing OEMs and an existing automotive value chain, access to a highly skilled workforce, and proximity to leading academic, research and development institutions, investors in TASEZ can tap into a wealth of human capital and knowledge. This advantage allows for the seamless integration of cutting-edge technologies and innovative manufacturing. As TASEZ CEO Dr Bheka Zulu notes: “With increasing urbanisation and economic growth across the continent, investing in TASEZ offers an opportunity not only to serve the domestic market but also to expand and tap into the burgeoning markets across Africa.” Currently products manufactured in the SEZ are exported to more than 150 destinations world-wide. In keeping with their determination to provide the best facilities possible for investors, representatives from TASEZ are taking part in the Africa Energy Indaba, on in Cape Town between 5 – 7 March 2024, where they are investigating the latest trends in the energy sector, including renewable energy. A primary element that makes TASEZ an attractive destination for investors is its commitment to green manufacturing. “By embracing renewable energy solutions and reducing its carbon footprint, the SEZ is taking significant strides toward creating an environmentally conscious and responsible manufacturing ecosystem,” Dr Zulu notes. In line with global trends, TASEZ is also promoting the development of electric vehicles. “By encouraging the development of New Energy Vehicles (NEV) and their components, our SEZ is driving a revolution that is expected to reshape the entire automotive landscape.” As the global automotive industry undergoes a profound technological evolution, TASEZ is geared up to take advantage of the opportunities such change brings.

State of the Province notes Gauteng is ready to create new opportunities

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If potential investors were listening to Gauteng’s State of the Province speech on Monday evening, 19 February 2024, they would have much to encourage them to look closer at being based in the province. Premier Panyaza Lesufi noted that if Gauteng was a country, it would have the third largest economy after Egypt and Nigeria, having introduced processes to transform, modernise and reindustrialise the economic sectors. The premier described the five major economy corridors that are now ready to grow.  “We took a conscious decision that each corridor must have a powerful economic centre.” For example, one of the key economic sectors in the Tshwane region is that of the automotive industry, where the Tshwane Automotive Special Economic Zone plays a critical role. Moving away from being dependent on mining, the economic development of Gauteng has focused on four key aspects: the financial sector; telecommunications; pharmaceuticals; and ICT. All the banks and insurance companies, as well as the telecommunication giants have their headquarters in Gauteng. “Companies like Google and Huawei chose our province to have their head offices,” the premier noted. The premier went on to highlight the development of the various Gauteng regions and their specific economic focus. As pointed out, the motor vehicle industry is a key driver of the Tshwane economy. Premier Lesufi noted that Phase 1 of TASEZ’s development had been completed. TASEZ “operations are in full swing, with the completion of Phase 1 of its development seeing the production of the first next-generation Ford Ranger and the VW Amarok getting into gear in November 2022.” Lesufi explained that this was the result of a capital investment of R15.8-billion by the Ford Motor Company of South Africa, with the company looking to increase its capacity to produce 200 000 vehicles annually and export vehicles to more than 100 global markets. In addition to the investment from Ford, Ford suppliers invested R5.6-billion into TASEZ, along with an initial government investment of R3.9-billion. With the need to streamline the export of vehicles, the premier announced that “we are developing a new railway line between Tshwane and East London, led by the Minister of Public Enterprises, so that we can ship these cars from the East London port to the world”. “We are indeed excited that these developments are pointing to one direction and one direction only, our economy is back on its feet.”