TASEZ makes an impact beyond SA’s borders

By Mandla Mpangase In a first for a South African special economic zone, the Tshwane Automotive Special Economic Zone (TASEZ) welcomed the heads of mission from the Southern African Development Community (SADC) to share information and talk about unlocking opportunities for economic growth in the region. On Monday, 1 July 2025 the TASEZ team, headed by CEO Dr Bheka Zulu, rolled out the red carpet for the distinguished SADC delegation – ambassadors, high commissioners, and chargé d’affaires – along with representatives from the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition, and Brand South Africa and Trade and Investment KwaZulu-Natal. This gathering was not just a simple meeting – it was a deliberate step toward weaving stronger ties between neighbours, aligning with the goals of SADC, the Southern Africa Customs Union, and the African Continental Free Trade Area. TASEZ gave the delegation a front-row seat to South Africa’s important automotive manufacturing industry and the exciting opportunities for partnerships and investments that could uplift not just South Africa, but the entire SADC region. Welcoming the SADC delegation to Africa’s first automotive city, Dr Zulu provided a telling context for their visit: TASEZ has a footprint beyond South Africa. “We are part of the 244 plus SEZs that exist in the African continent, and we’re part of the 5 000 plus that exist globally.” Driving industrial growth SEZs are seen as economic and infrastructural drivers. TASEZ was set up to enhance a significant investment from the Ford Motor Company – bringing component manufacturers closer to the Ford factory in Silverton, ensuring a streamlined just-in-time and just-in-sequence provision of essential parts for the Ford Ranger. Critical to the success of TASEZ was the joint strategic partnership between all three tiers of government via the Department of Trade, Industry and Competition, the Gauteng Department of Economic Development, and the City of Tshwane along with catalytic partnerships with the private sector. Over the five years TASEZ has been in development, is has seen 8 000 direct jobs and 15 000 indirect jobs created in the value chain. In addition, the SEZ has provided R1.7-billion towards small, medium, and micro enterprise (SMME) projects. “We’ve been a catalyst for about R30-billion investment to date,” Dr Zulu. He noted that none of this would have happened if it were not for the facilitation of the diplomats. Dr Zulu emphasised the lessons learnt by TASEZ during its development, offering to share the hard-earned knowledge with SADC. “We have a test case, a real case that has worked in the short time of five years … TASEZ has been a game-changer in an industry that contributes 5.3% to the country’s gross domestic product (GDP). “The contribution of TASEZ with its partners within for Ford, we are looking at having contributed 1% to the GDP,” Dr Zulu noted. Cross-border partnerships However, regional integration was important to the SEZ. “We cannot grow alone as a country; we need to grow with our brothers and sisters within the south and the continent.” Manufacturing development in Africa is viewed as an opportunity to lessen dependence on commodities and engage in economic diversification as way to boost competitiveness in the region. Despite this, the continent still accounts for a very low share of global manufacturing and global manufacturing exports. Recent research indicates that economic development requires structural change from low to high productivity activities and that the industrial sector is a key engine of growth in the development process, most particularly the growth of manufacturing development. Diplomatic missions play a crucial role in facilitating investment flows and promoting economic cooperation between countries. They serve as an important conduit for information sharing, networking, and advocacy on behalf of their countries. The goals of the joint meeting were: SADC’s Vision 2050 Andrew Maswanganyi, from the Department of International Relations and Cooperation’s Directorate: Economic Integration and Infrastructure, pointed out that regional integration was about “the small things we do”. He noted that SADC’s Vision 2050 was an important strategy looking to create a region where its people have food security, are healthy and educated. SADC’s Vision 2050 aims to create a peaceful, inclusive, and competitive region that is middle-to high-income industrialised, where all citizens enjoy sustainable economic well-being, justice, and freedom. It is built on the three pillars of industrial development and market integration, infrastructure development, and peace, security, and good governance. The meeting at TASEZ was “an opportunity for South Africa and its sister countries to cement strong bonds of friendship”, Maswanganyi said. The chairperson of the SADC group, Zimbabwe’s ambassador David Hamadziripi voiced appreciation of the opportunity witness first-hand what is being done in South Africa in its push for industrialisation. The visit by the delegation “not only deepens our understanding of South Africa’s industrial strategy but also speaks to the spirit of regional cooperation in shared development”, Hamadziripi said. Some of SADC’s member states were grappling with the imperative of industrialisation, job creation and inclusive economic transformation. SEZ’s as catalysts for growth “This special economic zone is a testament to how targeted investment, infrastructure development and strategic collaboration between government, the private sector and local communities can create a dynamic industrial hub with strong linkages to both domestic and global value chains.” TASEZ offers important lessons on how SADC can leverage special economic zones to drive manufacturing innovation and trade competitiveness, while also building infrastructure, promoting SMMEs, building critical skills and creating opportunities for young people. “Special economic zones can serve as a model or as model platforms for collaboration with the potential to align such initiatives with cross-border supply chains, promote investment partnerships and share these practices across our member states.” Hamadziripi added: “We are also cognisant that industrialisation can be driven by a combination of factors, including policy coherence, skills development, innovation and infrastructure investment.” The visit to TASEZ was not just about observing, but also about learning and exploring how SADC can replicate and adapt these lessons to their respective countries. The automotive sector has