direct foreign investment Archives

TASEZ features on Power FM business programme

The secret to the success of the Tshwane Automotive Special Economic Zone lies in its partnerships, says board chairperson Lionel October. He was speaking to Power FM’s Noluthando Mthonti-Mlambo during the business focus on 25 October 2023. TASEZ is based on partnerships between SEZ and the communities of Mamelodi and Eersterust, the Ford Motor Company of Southern Africa and its international component manufacturers that come from Thailand, Portugal, Brazil, as well as South Africa, and government. “If the three partners work together the community gets real benefits – [jobs and skills development], government provides the world-class infrastructure required, and the private sector creates the jobs and brings the technology, creating our export platforms that is the secret to success,” October said. TASEZ is one of 10 SEZs set up in South Africa to help grow the South African economy. SEZs are geographically designated areas set aside for distinct economic activities and are supported by special arrangements and systems that are often different from those that apply in the rest of the country. They are seen as engines that can propel government’s strategic objectives of industrialisation, regional development, and employment creation forward through attracting Foreign Direct Investment and exporting value-added commodities. Looking at the impact of TASEZ on the South African economy, October pointed out that it is a relative newcomer to the SEZ space, being built in record time, in two years and during Covid-19. This was thanks to strong leadership from the president, the Minister of Trade, Industry and Competition and the provincial and local governments, October said. In addition, Ford invested R16-billion into expanding their plant in South Africa. “They are now producing the new Ford Ranger vehicle in one of the biggest plants in their stable, exporting to over 100 countries.” Ford’s investment has seen the creation of highly skilled jobs – 2 000 created by Ford and 3 200 created by TASEZ. “This development has really been beneficial to the local economy.” Considering how South Africa’s SEZs measure up globally, October looked to China and the Asian Tigers, pointing out that their success can be attributed to SEZs. “While they obviously provide tax incentives and import incentives, but the real winning proposition that we see from China is power, land and logistics.” It is important to provide a proper logistics system, rail and road; to provide regular and consistent electricity; and to provide a well-developed zone in which to base the manufacturing businesses. In the case of TASEZ, the partnership with the City of Tshwane ensures consistent power to the zone, October said. “We’re working on a railway link between Tshwane and Gqeberha to use Port Elizabeth as an export port.” Added to this is the world-class infrastructure provided within the TASEZ hub.

The chairman of the board of TASEZ visits the hub

TASEZ gets clean audit for third year in a row

News / By Jenny Tennant

TASEZ chairman of the board Lionel October has congratulated the entity on its sterling performance in receiving a clean audit from the Office of the Auditor-General. The Tshwane Automotive Special Economic Zone (TASEZ) is proud to announce it has received a clean audit for its 2022/23 financial report. This is the third consecutive year the entity has received such a finding from the Office of the Auditor-General. “It is with immense pride and gratitude that I announce a momentous achievement that reflects our unwavering commitment to transparency, accountability, and excellence,” said board chair Lionel October. “This clean audit reaffirms our commitment to prudent financial management, effective controls, and ethical practices.” The clean audit means that TASEZ produced financial statements that are free from material misstatements and have no material findings on reporting on performance objectives or non-compliance with legislation. “It reinforces our position as a reliable SEZ for local and international investors, assuring them that their investments are managed with the utmost integrity and diligence. Our ability to consistently uphold the principles of transparency and accountability is a cornerstone of TASEZ’s reputation as a world-class hub for automotive investments,” October added. TASEZ, known as Africa’s first automotive city, provides an SEZ that offers a range of financial incentives and high-level support services to investors. Its mandate is to accelerate economic reform through attracting investment and creating jobs and opening up opportunities for small, medium and micro enterprises – and ultimately transforming the automotive sector.

Business leaders from the BRICS nations visit the TASEZ plant in Silverton

TASEZ talks investment opportunities to BRICS businesses

News / By Jenny Tennant

In the week prior to the 15th annual BRICS summit due to take place in South Africa from 22 – 24 August 2023 under the watchful eye of chairperson President Cyril Ramaphosa, the Tshwane Automotive Special Economic Zone (TASEZ) played host to a delegation of business leaders from Brazil, Russia, India and China. A high-level group of business leaders from the BRICS nations are in South Africa to explore investment opportunities across a wide range of economic sectors, including the automotive manufacturing sector. The group visited the TASEZ plant in Silverton on Monday, 14 August 2023 and was warmly welcomed by a large TASEZ team, headed up by board chair Lionel October and CEO Dr Bheka Zulu, eager to talk business opportunities and investment incentives. “We want to showcase our special economic zone to big investors who want to take up occupancy in our hub,” October said. Tshwane is uniquely placed as an automotive hub, with Ford based in the TASEZ plant and BMW and Nissan in the nearby industrial area. October sees the city becoming the gateway to Africa for the automotive sector. With Phase 1 of the TASEZ development complete and fully occupied by anchor tenant Ford and nine manufacturers producing components required for the Ford Ranger, the TASEZ team are now looking to implementing the development plans for Phase 2 and 3. “We are looking for two or three other global companies to take up the incentives available in the zone, along with the infrastructure and support TASEZ supplies,” October said. “We are excited to be hosting businesses from some of the largest countries in the world,” Dr Zulu said. “This is an important milestone for us, to engage with world business leaders and share with them our plans.” The BRICS group incorporates more than 40% of the global population and over 25% of the world’s economy. With this in mind, it is critical for South Africa’s economic and social growth and development to encourage foreign direct investment into the various sectors. “We do not see our SEZ in isolation, there are numerous linkages that will expand the reach of what happens in our hub,” Dr Zulu noted.