economic development Archives - Page 5 of 7

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

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’

News / By Jenny Tennant

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

News / By Jenny Tennant

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

News / By Jenny Tennant

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

Minister of Trade, Industry and Competition delivers key policy assessment at TASEZ

News / By Jenny Tennant

The Tshwane Automotive Special Economic Zone (TASEZ) was chosen to host the delivery of a critical national policy assessment by the Minister of Trade, Industry and Competition, Ebrahim Patel on Tuesday, 7 March 2024. The minister delivered the Industrial Policy and Strategic Review – Transforming Vision into Action: Charting South Africa’s Industrial Future. “TASEZ was chosen as the venue for this occasion as it demonstrates how changes in the approach to implementing industrial policy has given different, significantly positive, results,” the minister said at the beginning of his review. This review – and plan for the future – takes place at a critical time, as the country celebrates 30 years of democracy, and a few weeks before South Africa’s seventh administration takes office. South Africa’s economic development has, over the past three decades, leaned into the national industrial policy to drive growth and transformation in an effort to eliminate poverty and reduce inequality, with industrialisation identified as a key to unlocking the economy, building investor confidence and creating jobs across multiple sectors. Economic impact of investment into South Africa Minister Patel noted that foreign direct investment (FDI) into South Africa rose to R1.1-trillion between 2019 to 2023, a significant increase from the previous five-year period which garnered R312-billion. Investments over the past five years were 3½ times larger. This was despite the turbulent headwinds the country had to endure over the last five years: The FDI packages ameliorated much of the negative impact of the six shocks the country endured. “The resilience of the South African economy has surprised many commentators,” Minister Patel noted. He referred to the 2023 EY Attractiveness Africa Report which highlighted that South Africa attracted the most FDI projects in Africa – 157, making up 23% of the continent’s total. According to the report, South Africa’s FDI was valued at US$26.8-billion and created about 15 000 jobs, the highest number in southern Africa. The minister also noted that of the R1.5-trillion pledged at the five cycles of the South Africa Investment Conference, a third of the projects had already been completed, with others under construction. “What we did in these five years is to try and get investment to flow notwithstanding the headwinds – and we have already seen some real impact.” Minister Patel reviewed the work done by the Department of Trade, Industry and Competition over the past five years, discussing a number of success stories in a variety of sectors; examining the challenges that had arisen; and charting a way forward to speed up the various economic programmes. Several key elements were vital to the success of the reimagined industrial strategy, including: This was supported by a number of programmes including the development of sectoral masterplans, which saw a move towards a multi-stakeholder approach, “in which government, the private sector and labour collectively developed and implemented plans”. The masterplan process modelled a new approach, where the state works in a flexible way to address the diverse concerns facing individual companies and other stakeholders. A catalytic project on SEZ development TASEZ is shining example of this approach; showcasing a more rapid and coordinated development process, particularly in reference to setting up special economic zones. One of the key drivers of TASEZ’s business approach is the South African Automotive Masterplan, with its focus on transforming the sector, promoting localization and creating jobs. TASEZ is a critical case study in the speedy implementation of the special economic zones in South Africa. It took four short years for TASEZ to develop from a dusty veld to a modern industrial hub, with an automotive original equipment manufacturer (OEM) – the Ford Motor Company of Southern Africa – supported by other component manufacturers. “Investment was unlocked through an anchor firm, Ford, while the dtic, the Gauteng government, and the City of Tshwane pooled their resources and capabilities,” the strategy review notes. “This solid base allowed for the rapid unlocking of 11 investments by component firms and help establish the SEZ by developing a network of interconnected producers around the zone.” The review noted: “All of this was underpinned by strong alignment with pre-existing policy including state support through the Automotive Production and Development Programme and investment funding through projects like the Automotive Investment Scheme.” In its short existence, TASEZ has seen an investment of R16-billion from Ford; R5.6-billion from the various component manufacturers; and R3.92-billion from government – in its first phase of development. In addition, the first phase of TASEZ has seen the creation of 3 244 permanent jobs in the automotive manufacturing sector and a further 5 071 jobs in construction. Procurement spend in the small, medium and micro enterprise sector has totalled R1.7-billion so far. “This mode – of moving quicky, working through partnerships, coordinating across the state and aligning with broader support programmes – offers a sturdy pathway for the revitilisation of industrial policy,” the review report noted. TASEZ is now preparing to begin the second phase of development, with several investors already preparing to join the hub. “As a special economic zone that plays an integral role in transforming the automotive manufacturing sector,” TASEZ CEO Dr Bheka Zulu, adding that the Africa’s first automotive city could attest to the importance of a strong industrial policy in encouraging global investors.

TASEZ supports training in manufacturing

News / By Jenny Tennant

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.

South Africa’s SEZs driven by renewable energy

News / By Jenny Tennant

The Tshwane Automotive Special Economic Zone (TASEZ) has a mixed-energy response – including gas to power and solar photovoltaic (PV) cells with battery storage – to ensure operations based in the manufacturing hub are not brought to a halt by power outages and to comply with government imperatives for onboarding green energy solutions. A key challenge to business operations within South Africa is ensuring energy supply remains constant, despite regular nationwide loadshedding. “This has led us to find innovative solutions,” TASEZ CEO Dr Bheka Zulu explained during a fireside chat at the Sustainable Infrastructure Development Symposium of South Africa (SIDSSA) in Cape Town on Tuesday 19 March 2024. “We are currently underway with a gas to power plant project, which will make 20MVA available, along with a solar PV and battery storage solution that will add another 10MVA.” However, as Africa’s first automotive city – based in Silverton – continues to grow, it needs to find more energy, Dr Zulu added. SIDSSA, an annual event, brought together stakeholders from South Africa and across the continent to discuss ways to drive infrastructure development, which has been identified as the key driver in growing the economy. SIDSSA provided a platform for discussions and partnerships in the infrastructure investment landscape, with a focus on accelerating economic activity through strategic infrastructure plans. SEZs are ideally placed to accelerate industrialisation in the country; according to the Chief Operations Officer of the Industrial Zones Programme at the Industrial Development Corporation, Stieneke Jensma. “We started a programme focusing on energy security, specifically regarding SEZs. The idea is to collaborate and to ensure that what we are delivering solutions that promote industrialisation.” Strategic partnerships are key in implementing green energy projects, according to TASEZ’s CEO. TASEZ’s approach to energy takes cognisance of the United Nations’ Sustainable Development Goals – particularly Goal 7, which is linked to the provision of clean energy; Goal 9, which aims to build resilient infrastructure using innovative technology; and Goal 13, which is about taking action to combat the impact of climate change.

Green TASEZ ready for investors

News / By Jenny Tennant

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

News / By Jenny Tennant

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.”

Tasneem Motara, Gauteng MEC for economic development, addresses the media

TASEZ gets accolades from media

News / By Jenny Tennant

During a roundtable discussion on Gauteng’s economic development with MEC for economy, Tasneem Motara, and members of the media on Thursday, 15 February 2024, it was a journalist who noted that the Tshwane Automotive Special Economic Zone could be considered “a resounding success”. A manufacturing development project that could have taken a decade, came to fruition in a mere 36 months. TASEZ – Africa’s first automotive city – was officially launched in November 2019, and the first cars rolled off its Ford production line in November 2022. The automotive hub’s achievement was even acknowledged when it won a Built Environment Recognition Award as a “state-owned entity that implemented infrastructure projects timeously” at the end of 2023. As a special economic zone focused on growing investment and innovation within the automotive sector, TASEZ is a vital cog in the country’s economic development. Based in the automotive hub of the City of Tshwane, TASEZ sees itself as “shaping the future of automotive excellence” as it helps the South African automotive industry on its path to transform the sector by attracting investments and becoming more inclusive and more sustainable. Motara briefed the media on the economic landscape of the province, highlighting a number of achievements and speaking plainly about the challenges. Key to the development of the Gauteng economy is transformation and the building of the township economy. Motara explained how the province has provided financial aid and legislative support to emerging entrepreneurs and small, medium and micro enterprises (SMMEs). Among the programmes run by the Gauteng provincial government are the acquiring of products and services from township SMMEs; support for upgrading township businesses in the key sectors of manufacturing, retail, ITC, the taxi industry and backyard real estate. Public private partnerships involving the Gauteng provincial government include: Bizniz in a Box hawker stalls in partnership with Coca-Cola Beverages South Africa; the Last Mile delivery initiative providing market access to motorbike riders, in partnership with UberSA, iBoltSA and Takalot; and the refurbishment of five township bakeries, with family tree, Heinkeken and Coca-Cola Beverages South Africa providing equipment. Although not part of the roundtable discussion, TASEZ too plays its part in empowering local township economies. It has a Memorandum of Understanding with the local communities through the Community Project Committee (CPC) which represents Eersterust, Mamelodi and Nelmapius.