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Dr Bheka Zulu

TASEZ and parliamentary committee talk localisation and stimulating manufacturing

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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

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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.

TASEZ – it’s time for the lions to tell their story

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By Mandla Mpangase By hosting the opening of the Gauteng Provincial Legislature and the State of the Province Address at the Tshwane Special Automotive Zone on 24 February 2025, the provincial government – one of TASEZ’s shareholders – acknowledged how far the special economic zone has come in opening up the economy. Premier Panyaza Lesufi took the opportunity to talk about the impact TASEZ has had in its short existence as he began his speech. “Five years ago, where we are now, there was nothing but empty ground. Today, as we hold this State of the Province Address in this facility, we can show how we are moving forward, helping drive South Africa – the future of manufacturing starts here.” TASEZ – Africa’s first automotive city – sees the production of more than 700 cars every day, 200 000 annually thanks to the component manufacturers based in the special economic zone, next to Ford’s Silverton plant. The premier referenced the proverb “until the lions have their historians, tales of the hunt shall always glorify the hunter” pointing out that today, the lions are telling their story. “We are ready to tell our story,” he said, adding that the venue of the State of the Province Address stood as testament to the things that are being done in South Africa. “We have 8 000 people who were unemployed three years ago, that have jobs today.” Gauteng was proud to be the home of Africa’s first automotive city. Lesufi pointed out that TASEZ grew out of a multi-tiered partnership between the Gauteng Province, the national Department of Trade, Industry and Competition, and the City of Tshwane – and of course, the drive from the investment made by the Ford Motor Company of Southern Africa in expanding its plant. Phase 1 of TASEZ saw a total investment of R26-billion, with more than 8 000 jobs created in construction and permanently. “This innovation has also brought opportunities for 229 small businesses to work within the zone. They benefitted from R1.7-billion set aside for procurement packages from small, medium and micro enterprises (SMMEs).” Attention was paid to women, youth and people with disabilities in particular. “This special economic zone is a demonstration of what can be done by other special economic zones to create opportunities.” Premier Lesufi told the legislature that earlier in the day he had attended a sod-turning ceremony to mark the start of TASEZ’s Phase 2 development. Phase 2, the premier noted, 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. “We don’t want to simply build cars, we want to transfer these skills to our young people,” Lesufi said. “We are proud that Phase 2 is going to include an academy to train the young people for the future.” Reflecting on the fact that TASEZ was chosen to host the 2025 State of the Province Address, CEO Dr Bheka Zulu said: “History has been rewritten here, not with a pen, but with the presence of the people.” TASEZ is the first SEZ to host such a significant event. “Scores of people from all walks of life came to be part of this event,” Dr Zulu added. “For us, that is a significant indication that we are an organisation of choice.” The lions have told their story.  

Collaboration and partnerships key to development

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By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) has signed a Memorandum of Understanding with the Gauteng Provincial Legislature ahead of hosting the official opening of the legislature and the 2025 State of the Province Address next week. TASEZ CEO Dr Bheka Zulu and the Gauteng Provincial Legislature Acting Secretary Linda Mwale ceremonially signed the document during a media briefing at the Gauteng Provincial Legislature offices on 20 February 2025. Prior to the signing, members of the media were told of the strong partnership between the Legislature and TASEZ. The legislature’s Chair of Chairs, Bishop Dulton Adams said that holding the official opening of the legislature and State of the Province Address at TASEZ was of particular importance. “This is not just a venue. It is a symbol of economic transformation, industrialisation and investment driven growth.” The official opening of the legislature and the delivery of the State of the Province Address takes place in the TASEZ hub on 24 February 2025. TASEZ, he said, boosts Gauteng’s automotive industry, driving investment in economic growth, creating jobs and developing skills, and positioning Gauteng within the African and global trade environment. “This is a milestone moment for TASEZ,” the CEO told the media. Dr Zulu explained that TASEZ, known as Africa’s first automotive city, was a new kid on the block in terms of South Africa’s special economic zones (SEZs), but it was punching above its weight. The SEZ was supported by all three tiers of government: the Gauteng Province; national government, through the Department of Trade, Industry and Competition; and local government, through the City of Tshwane. “All these shareholders contribute to us, as an organisation, changing the landscape of SEZs and the automotive sector.” 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 changes,” Dr Zulu said. The automotive industry an important contributor to the country’s economy. In 2024 the industry’s entire value chain contributed 5.3% to the GDP. The industry also employees more than 500 000 people 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 added. “With the global shift towards sustainable practices of a greener future, TASEZ has embraced a number of green energy solutions centred on solar power.” This was part of the SEZ’s cleaner strategy. “One of the reasons for this,” Dr Zulu said, “is that 65% of the products manufactured in TASEZ are for export.” These products reach more than 100 countries around the world, including Europe, where the continent has set 2035 as the deadline for a net zero carbon footprint. Dr Zulu also pointed out that the industry was moving towards new energy vehicles, which will require new skills and a new way of doing business. He took the media through the economic impacts TASEZ had made during it Phase 1 development: TASEZ spent R1.7-billion on construction procurement from small, medium and micro enterprises (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 based in the local communities of Eersterust, Mamelodi and Nellmapius. Some 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 created 3 311 permanent jobs, with 32% going to women, 65.47% to youth, and 0.83% to people with disabilities. 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,” Dr Zulu said, “is we produce a car every minute. By the end of today, more than 720 cars will have been manufactured.” As TASEZ beings to unroll its Phase 2 development is has set up a center of excellence “because there is a growing need to upskill, reskill and prepare us, and our communities, for the advancement of technology”. TASEZ has raised additional funding specifically for skills development. “That’s how serious we are in terms of transforming and innovating this country – we can’t grow without our people. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

TASEZ welcomes the State of the Nation address

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By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) takes careful note of the key messages raised by President Cyril Ramaphosa in this State of the Nation address in Cape Town last night, 6 February 2025. One of the issues he raised was the need to ensure that growth creates jobs for all, especially for young people. “We are going to answer that call,” says TASEZ CEO, Dr Bheka Zulu. “Our aim in the special economic zone is to encourage investment within the global automotive manufacturing sector and in so doing, create jobs for the people of the City of Tshwane in general and the local communities of Eersterust, Mamelodi and Nelmapius in particular.” The president noted that the success of the Presidential Employment Stimulus shows how public employment programmes can create meaningful work that generates a wider benefit and contributes to sustainable employment.  “The employment stimulus has created almost 2.2 million work and livelihood opportunities through innovative models that provide high-quality work to participants.”  One of the industries of the future is in the automotive manufacturing space, with the setting of limits to carbon emissions and the rise of new energy vehicles, particularly in the European market, something TASEZ is directly involved in monitoring and supporting. President Ramaphosa noted: “To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy.” His comments about finalising a modernised and comprehensive industrial policy that drives economic growth by “focusing on the opportunities in localisation, diversification, digitisation and decarbonisation” is of particular importance to the automotive manufacturing industry. The South African Automotive Masterplan 2030 has set targets to deal with all of these issues: Grow South Africa’s vehicle production to 1% of global output Increase local content in South African-assembled vehicles to up to 60% Double employment in the automotive value chain Improve automotive industry competitive levels to that of leading international competitors Transformation of the South African automotive value chain Deepen value addition within South Africa’s automotive value chains In addition, South Africa will be working towards the full implementation of the African Continental Free Trade Area (AfCFTA), “which will tear down the barriers to trade on our continent”, the president said. “As the most industrialised economy in Africa, we are positioning ourselves to be at the centre of this new and growing market.” As a global role player, this is of particular importance to TASEZ. South Africa has been a key player in the development of AfCFTA’s automotive framework, which aims to enhance trade within the continent.  The automotive sector is one of the country’s largest economic sectors. According to the Automotive Business Council, naamsa, the automotive industry contributes 5.3% to GDP [3.2% manufacturing and 2.1% retail], with exports equating to 14.7% of South Africa’s total exports – reaching 148 international markets. The manufacturing segment of the industry employs 110 000 people across its various tiers of activity and combined with the industry’s strong multiplier effect, is responsible for 457 000 jobs across the South African economy. With the national goals of making the economy more inclusive, TASEZ focuses on empowering those who were “deliberately excluded from playing a key role in the economy of their own country”, to quote the president: black industrialists; small, medium, and micro enterprises (SMMEs); women; the youth; and people with disabilities. TASEZ, in its Phase 1 development supported SMMEs to the tune of R1.7-billion and created 5 500 construction jobs and 3 311 permanent jobs for people from the local communities. Of the construction jobs, 18% were women, 60% were youth, and 0.86% went to people with disabilities. Of the permanent jobs, 32% went to women, 65.47% to youth, and 0.83% to people with disabilities. “As we enter Phase 2 of our development, we remain committed to transforming the sector, opening opportunities for SMMEs and black industrialists, and helping train people for the future,” said Dr Zulu.

WEF report highlights urgent need for new skills

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By Mandla Mpangase Every year the who’s who of the global political, research and business worlds gather together in Switzerland to discuss issues and shape industrial, environmental and social programmes. The annual meeting of the minds, held under the auspices of the World Economic Forum (WEF), took place from 20 to 24 January 2025 in Davos-Klosters. WEF has published a research document called The Future of Jobs Report 2025, ahead of the gathering, highlighting the “technological change, geoeconomic fragmentation, economic uncertainty, demographic shifts and the green transition” that are expected to shape and transform the global labour market by 2030. The report reveals that some 22% of jobs globally will face disruption by 2030. The figures show that 170-million (14% of today’s total employment) new jobs are likely to be created, while 92-million jobs (8% of today’s total employment) will no longer exist within the next five years. The findings are of particular interest to the Tshwane Automotive Special Economic Zone (TASEZ) as one of South Africa’s key investment instruments as a special economic zone (SEZ). Known as Africa’s first automotive city, TASEZ focuses on supporting global, regional and local investors in the automotive manufacturing industry. As such, the SEZ is ever aware of ongoing and rapid developments on the automotive manufacturing industry, including the development of new energy vehicles (NEVs) and the associated research and development required for that. TASEZ itself is also impacted by ever-evolving technological changes, the importance of embracing the green transition and the need to address economic transformation within South Africa. The WEF report brings together “the perspective of over 1 000 leading global employers – collectively representing more than 14 million workers across 22 industry clusters and 55 economies from around the world – to examine how these macrotrends impact jobs and skills, and the workforce transformation strategies employers plan to embark on in response, across the 2025 to 2030 timeframe”. A major area of focus is the broadening the digital access which is expected to transform the way business is conducted and includes the use of advanced technologies such as AI and information processing; robotics and automation; and energy generation, storage and distribution. “These trends are expected to have a divergent effect on jobs, driving both the fastest-growing and fastest-declining roles, and fuelling demand for technology-related skills,” the report notes. One of the top trends identified is related to economic conditions; the report notes that businesses expect to see an increase in the demand for creative thinking and resilience, flexibility, and agility skills. Both these elements are important to TASEZ, which has set up a training academy to answer the future demands of the industry as well as to make a significant contribution to changing the economic face of South Africa by making the industry a more inclusive, localised one. “We believe that SEZs can become engines of skills development, as well as training. By focusing on skills development within SEZs, the government, in partnership with international and local businesses, can empower community members and others, create diverse job opportunities, and drive sustainable development,” says TASEZ CEO Dr Bheka Zulu. The Future of Jobs Report 2025 also notes that climate-change mitigation is the third-most transformative trend overall – “climate change adaptation ranks sixth with 47% and 41% of employers, respectively” It is not surprising that the report identifies these trends as “driving the demand for roles such as renewable energy engineers, environmental engineers and electric and autonomous vehicle specialists”. All three roles are in the top five fastest-growing jobs. The skills gap is considered the largest barrier to business transformation, with the need to upskill and reskill the workforce requiring urgent attention. Nearly 60% of the global workforce will require reskilling or upskilling by 2030, according to the report. “If the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 could be upskilled and redeployed elsewhere within their organisation. However, 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk,” the report suggested. The TASEZ Training Academy was set up with a set of clearly defined aims: to understand and respond to industry trends and community needs; to provide easy access to a range of much-needed development programmes; to build strong partnerships within government, the Sector Education Training Authorities (SETAs), higher education institutions, research bodies, and industry; and to be the go-to academy for South Africa’s automotive sector. “We want to play a significant role in shaping the future of automotive excellence in South Africa,” Dr Zulu concludes. Image: Media briefing on the Future of jobs report (World Economic Forum 2025)

TASEZ has much to celebrate as 2024 and Phase 1 draw to a close

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By Mandla Mpangase As 2024 draws to a close the Tshwane Automotive Special Economic Zone has much to celebrate, according to board chair Lionel October. “This is a project that is a shining example of the three government shareholders doing everything that was asked of them,” he adds. “When we asked the City of Tshwane for land, they gave us land. When we asked the Department of Trade, Industry and Competition to provide support for the Special Economic Zone’s top structures they did so to the tune of over R2-billion. The Gauteng government also played their role in providing bulk infrastructure, also at a cost of almost R2-billion.” Their drive and determination saw TASEZ rise from the dusty highveld in 2020 to becoming a fully-functioning, technologically innovative automotive manufacturing hub within two years. “The development happened in a record time,” October points out. During the construction phase 5 000 jobs were created, with 40% going to small, medium and micro enterprises in the neighbouring townships of Eersterust, Mamelodi and Nellmapius – “another record achievement”. In addition, a further 3 200 permanent jobs were created. TASEZ focuses on its priorities of job creation through aggressive infrastructure development, growing small, medium and micro enterprises, inclusion and accelerating economic reforms to unlock investment and growth. “People ask why government places such an emphasis on the automotive industry,” the chair notes, adding that it is an industry that requires highly skilled workers, and with that comes better wages. The South African automotive sector is one of the most visible sectors in receiving foreign investments and contributes significantly to the growth of the economy. It is an industry that generates millions both nationally and for the City of Tshwane. The automotive manufacturing industry contributes 4.3% to the annual gross domestic product and provides direct employment for 110 000 people. But it also goes beyond the initial investments provided by the original equipment and component manufactures, but the ongoing generation of money that grows the local economy. In addition, the automotive manufacturing industry represents the medium technology sector, removing workers from a low wage, unskilled future to the middle income. However, there is now a pressing need to up the ante with the development of new energy vehicles and the rapid progress of technology. “We need to transition into a high technology, high income economy.” And TASEZ is well placed to perform that role, with the establishment of a training academy as part of its Phase 2 developments. “We will have our own campus where we hope to train between one thousand to two thousand young people each year. “Furthermore, we will be working with the Industrial Development Corporation to create a stream of black industrialists in the automotive manufacturing industry,” October says. TASEZ is also exploring investment opportunities related to the manufacturing of NEVs. “It is important that we do so,” October adds. “We have about 10 to 15 years left for petrol vehicles, and we at TASEZ need to be at the centre of the new developments. “The fact that Gauteng is a major automotive market gives us a competitive advantage.”  

Business engineering key developmental milestone for SA auto manufacturing sector

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By Mandla Mpangase Africa’s first automotive city, the Tshwane Automotive Special Economic Zone (TASEZ), is set to play a leading business engineering role in training a sklled workforce for a new automotive environment that will embrace new energy vehicles (NEVs) and cutting-edge technologies. A number of countries, including South Africa, have announced pledges to achieve net zero emissions over the coming decades. South Africa has set itself the task of zero net emissions by 2050, bringing global energy-related carbon dioxide emissions to net zero by that time to give the planet an even chance of limiting the global temperature rise to 1.5 °C. 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. Research by Deloitte, Automotive Pathways to Decarbonisation, notes 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”. TASEZ has also set itself the bold mission of being a key contributor to creating new businesses, ensuring stable affordable energy supplies, and enabling robust economic growth. Pathway for SEZs TASEZ has proactively set out a cost-effective and economically productive pathway for special economic zones (SEZs) in Africa that will yield results for a clean, dynamic and resilient energy economy, dominated by renewables like solar, waste to energy, and hydrogen instead of fossil fuels. These initiatives will enhance productivity and competitiveness for the automotive manufacturing sector, contributing to South Africa’s socio-economic development through creating jobs and transforming the industrial landscape of the SEZs, says TASEZ CEO Dr Bheka Zulu. 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. “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. Based in Silverton, Pretoria, TASEZ sits adjacent to the Ford Motor Company of Southern Africa and provides infrastructure, just in time, just in sequencing, and bespoke services to a range of component investors. A relatively new entrant into the automotive manufacturing space, TASEZ gained traction when Ford announced it would be investing US$1-billion in upgrading its facilities in South Africa to increase its production from 160 000 vehicles a year to 200 000. The Ford Frame plant and 10 other component manufacturers began moving into the TASEZ space in 2020 to make this a reality – against a very tight deadline of some 18 months. The first Ford Next Generation Ranger came off the production line in November 2022. TASEZ strategic goals With that specific target met, TASEZ could expand its focus more broadly to the strategic goals of helping grow the economy and transform the South African automotive industry, as spelt out in the South African Automotive Master Plan; creating awareness and support for the development and growth of the automotive SEZ; attracting automotive and related industries and tenants into the SEZ; and supporting socio-economic empowerment within the surrounding communities. As a new development, focus was also on creating a zone that embraced the United Nations Sustainable Development Goals in helping end poverty, supporting green energy, and the transfer of skills to those previously excluded from the economic sectors. Phase 1 saw TASEZ creating 5 071 construction jobs (with 18% going to women, 60% going to youth, and 0.86% going to people with disabilities), 3 244 permanent jobs within the automotive manufacturing sector (with women representing 32%, youth 65.47%, and people with disabilities 0.83%), and 10 000 supply chain jobs. In addition, TASEZ provided small, medium and micro enterprises (SMMEs) with R1.7-billion in contracts. “South Africa sets a great store on the SMME sector as a driver of economic development and growth,” Dr Zulu notes. The National Development Plan 2030 (NDP) has set a target of 24 million people in employment by 2030, which 21.6 million would be in 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. New developmental phase As TASEZ begins to develop Phase 2, it is worth noting the importance of SEZs to South Africa’s industrialisation: SEZs are intended to attract foreign and local direct investment through offering various incentives; to enhance the country’s export capacity by providing a conducive environment to produce competitively priced goods; and to generate employment opportunities, particularly where there is high unemployment. TASEZ is well aware of the ever-evolving landscape of the automotive manufacturing industry, with NEVs just around the corner, the necessity to embrace Fourth Industrial Revolution skills in manufacturing, and a keen awareness of the need to ensure that everything is done sustainably, with a built-in resilience. Phase 2 sees TASEZ focusing on becoming a Centre of Excellence for current and future skills programmes, entrepreneurial incubation programmes and high-tech education programmes based on the needs of both the automotive manufacturing industry and the surrounding communities. TASEZ Training Academy “Youth development is a key component of our business case,” says Dr Zulu. Achieving net zero by 2050 cannot be achieved without the sustained support, behavioural changes and participation from citizens, particularly in advanced economies,” he adds. “The TASEZ Training Academy will develop high-tech youth empowering initiatives such as Carbon Capture, Utilisation and Storage (CCUS) programmes which will contributes to the transition to net zero in multiple ways. These will include tackling emissions from existing energy assets, providing solutions in some of the sectors where emissions are hardest to reduce, thereby

TASEZ shares investment ideas, experience with African SEZs

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By Mandla Mpangase The leaders of Africa’s special economic zones (SEZs) – including Africa’s first automotive city – are putting their minds to the role they can play in attracting impactful investments and redefining competitiveness. This theme set the tone for the annual meeting of the African SEZs which was held in Nairobi, Kenya, at the end of November 2024. The meeting was attended by some 300 participants representing governments, international experts, decision-makers, financial institutions and representatives from the various SEZs. The Tshwane Automotive Special Economic (TASEZ) team participated in the meeting in order to “see how we are positioned in terms of the SEZs across the continent”, according to TASEZ CEO Dr Bheka Zulu, adding that it was surprising to find that TASEZ was ahead of the curve. “We have a lot to contribute, and we have much to learn too,” Dr Zulu adds. There are more than 200 operational SEZs in 47 countries on the continent, according to the African Economic Zones Outlook 2021. This breaks down into 150 000 hectares dedicated to manufacturing, ago-processing and services. It is estimated that more than $2.6-billion has been invested in these zones. South Africa currently has 11 SEZs based in different provinces: in the Eastern Cape are Coega and the East London SEZs; Maluti-A-Phofung is in the Free State; OR Tambo and the Tshwane Automotive Special Economic Zone (TASEZ) are situated in Gauteng; Dube Tradeport and Richards Bay are based in KwaZulu-Natal; the Musina/Makhado SEZ is in Limpopo; Nkomazi is based in Mpumalanga; and the Atlantis and Saldanha Bay SEZs are in the Western Cape. The African SEZs annual meeting is the flagship event of the African Union Commission (AUC) and the Africa Economic Zones Organisation (AEZO), providing insights on critical issues related to the development of SEZs in Africa. Said Business Development Executive Msokoli Ntombana: “SEZs are viewed as one of the key instruments to accelerate industrialisation, attract important foreign direct investments, and stimulate the country’s economy. It is crucial that these elements are firmly in place to answer the call of the National Development Plan to create jobs, fight poverty and promote socio-economic equality. “Not only are these priorities for South Africa, but are crucial for Africa’s success, as driven by the Africa Agenda 2063. SEZs have a critical role to play in shaping Africa’s economic landscape long-term,” Ntombana says. Topics covered at the Nairobi meeting included: Building intelligent infrastructure, focusing on necessary infrastructure upgrades, such as 5G networks and data centres to support industrial activity securely; Workforce development, looking at strategies for upskilling the workforce to integrate large-scale technologies; Regulatory frameworks for new technologies, examining how policies can be adapted to foster technology innovation while protecting data privacy and ensuring ethical use; Sustainability, discussing the integration of circular economy principles, eco-industrial parks, and sustainable urban planning in SEZ development; Financing sustainable SEZs, looking at innovative financing mechanisms such as green bonds and climate funds to support the sustainable development of SEZs; and Policy and governance, examining how African governments can create conducive environments for the growth of socially inclusive and sustainable SEZs. “As we head into the age of the new energy vehicles (NEVs), it is important to recognise that most of the commodities required for NEV development comes from the African continent,” the CEO says. “So for us to tap into the relationships with our brothers and sisters is actually forward- looking, because we have the insight to be able to create trade lines between ourselves,” Dr Zulu notes. “It is important to capacitate the rail infrastructure between the original equipment manufacturers based in the City of Tshwane and our ports, which are crucial to the export of vehicles to our global markets,” TASEZ CEO Dr Bheka Zulu noted.

Inclusive growth path will benefit SA economy – Finance Minister

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By Mandla Mpangase While fiscal prudence is the name of the game for the Minister of Finance Enoch Godongwana, a key standout – as far as automotive manufacturing industry in general, and the Tshwane Automotive Special Economic Zone (TASEZ) in particular – is the confirmation of rail upgrades between Tshwane and Gqeberha. Minister Godongwana delivered his 2024 Medium-term Budget Policy Statement (MTBPS) in the National Assembly on 30 October 2024. His policy statement outlined the country’s strategy to lift the economy to a higher and more inclusive growth path, and rests on four pillars: maintaining macroeconomic stability; implementing structural reforms; supporting growth-enhancing infrastructure; and building state capability. Speaking of the renewed energy that followed the national elections earlier this year, the minister said: “There is a new light that is shining down on our country and on our economy. The recent elections demonstrated the resilience and maturity of our young democracy.”   Three priorities sit at the heart of government policy: Pillar three of the MTBPS is about effective infrastructure investment that will boost economic activity and enable higher growth over the medium term. “In this regard, we are implementing reforms that will create conditions to attract greater private sector participation.” One particular aspect of this is “to increase the pool of funders to diversify public infrastructure financing through new mechanisms and instruments. These include build-operate-transfer (BOT) structures and other concessions”.   Included in this particular programme are capacity upgrades on the rail network from Watloo in the City of Tshwane – near TASEZ and the Ford plant in Silverton – to Gqeberha. This is particularly important given that the South African automotive industry is export-driven, with vehicles needing to be shipped to international markets. “It is important to capacitate the rail infrastructure between the original equipment manufacturers based in the City of Tshwane and our ports, which are crucial to the export of vehicles to our global markets,” TASEZ CEO Dr Bheka Zulu noted. Minister Godongwana added that a request for proposals will be issued this year for funders who are interested in supporting projects such as the Watloo to Gqeberha upgrades. “Collectively, the infrastructure reforms will strengthen planning, appraisal, contracting, financing, and monitoring and evaluation.  “The outcome will be faster delivery of infrastructure that supports economic growth, the expansion of access to basic services and boosting job creation.” According to naamsa, the Automotive Business Council, Gauteng has the highest diversity in the country’s automotive profile, housing three OEMs as well as the majority of first- and second-tier automotive component suppliers in the country. “The economic muscle of the South African automotive industry, with its economic gains far outweighing its fiscal costs, cannot be underplayed.” Vehicle export value topped R203,9-billion in 2023.