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TASEZ features on Power FM business programme

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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.

Women of the SEZs initiative launched in Mamelodi

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Shining a spotlight on the role of women in South Africa’s economy, a significant event took place in Mamelodi on 7 September 2023 with the launch of the Women of the SEZs initiative. The initiative aims to showcase the achievements of women in the special economic zones (SEZs) space, inspire future generations, and create an environment that nurtures their growth and success. Welcoming participants to the event, Tshwane Automotive Special Economic Zone (TASEZ) corporate services executive Vangile Nene said the intention of the initiative is to create a legacy, much like how people look back at the contribution made by the women of 1956, who marched to the Union Buildings protest the pass laws. “We hope that generations will look back on this day,” she added. Among those attending the launch was the chair of the SEZ CEO Forum Kaashifah Beukes; the acting deputy director-general responsible for industrial finance at the department of trade, industry and competition and TASEZ board member, Susan Mangole; Irene Ramafola, the chair of TASEZ’s audit and risk committee; TASEZ’s CFO, Rebecca Hlabatau; and Lebogang Zwane, project manager at the Motheo Construction Group. Also present were community liaison officers from the Community Project Committee, a structure set up between the local communities of Eersterust, Mamelodi and Nellmapius and TASEZ to find ways of working together to create local job opportunities and training programmes; representatives from DSV, Feltex and Automould – factories based within the TASEZ hub; and the women of TASEZ. The Women of the SEZs initiative is a declaration of the sector’s commitment to building a future where women’s voices are not only heard but celebrated, and where their contributions are not only acknowledged but revered. Growing the Women of the SEZs initiative “We want to grow this initiative and involve all the other SEZs across the country, and beyond,” Nene added, while Mangole noted that “today marks an important day, where we find ways to inspire and build women.” Central to the launch was a panel discussion on the role of women in South Africa’s key economic sectors and how the role they can play in bring about transformation. Ramafola, as the panel moderator, pointed out that the women of 1956 had their own challenges, and “we have ours”. “While South Africa has made great strides in building a non-sexist society and progress has been made to promote gender equality, the same cannot be said when it comes to the economy,” she said. “Why is this the case?” she asked the panel. Panellists Mangole, Beukes and Zwane spoke passionately about the challenges women face in the industrial sectors, sharing practical solutions and personal experiences. Ideas raised during the wide-ranging discussion included: The Women of SEZs initiative is a rallying cry, a call to action to champion diversity, foster inclusivity, and empower excellence. It serves as a testament to the unyielding determination of women who continue to steer the course of progress, innovation, and collaboration within the SEZs and beyond.

Growing township automotive sector through investment, regulating, upgrading skills

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Government takes the automotive sector very seriously, Premier Panyaza Lesufi said at a workshop on township mechanics held in Johannesburg on Wednesday, 6 September 2023. Addressing a packed hall of industry role players including the Tshwane Automotive Special Economic Zone (TASEZ), the Retail Motor Industry Organisation (RMI), the MerSETA (Manufacturing, Engineering and Related Services), the Automotive Industry Development Centre (AIDC), professional automotive mechanics, apprentices and learners, Lesufi said that key to investing in and growing the sector – particularly in the province’s townships – it was important to make sure that the businesses needed to be regularised and be competitive. In addition, “those who want to invest in the townships must invest on our terms. They must consult with the local players and make sure they empower them”, Lesufi said. The workshop was part of the Growing Gauteng Together initiative run by the Gauteng provincial government and the Gauteng department of economic development. He told the delegates at the workshop that the township economy was critical to developing the country’s economy in general. “This is the only province that has passed a law ensuring that the government will buy services from townships, hostels and informal settlements.” TASEZ is a prime example of ensuring that townships are included in the development of the automotive sector. One of the policies essential to the TASEZ business model is that investors must make provision for the inclusion of local community members in their workforces. Lesufi’s message drew on the data shared by the Deputy Minister of Trade, Industry and Competition, Fikile Majola, who noted that the workshop should provide long-lasting, actionable solutions. SMMEs crucial to economic growth The triple challenges of unemployment, poverty, and inequality impact on the country’s development agenda, and the townships are the epicentre of these challenges. More than a quarter of South Africa’s population live in townships and more than half of those in the townships are unemployed, yet the township economy is critical to the country. He referred to the importance of special economic zones (SEZs) being connected to the township model of economic development. SEZs are geographically designated areas set aside for specifically targeted economic activities to promote national economic growth and exports by using support measures to attract foreign and domestic investments and technology. TASEZ, Africa’s first automotive city, is located in Silverton near the townships of Eersterust, Mamelodi and Nellmapius. Much of the workforce used in the factories based at TASEZ come from the surrounding communities. Majola noted that the South African Automotive Masterplan spoke about doubling production by 2035. “One million cars are manufactured annually on the African continent, with 700 000 of those coming from South Africa, Morocco and Egypt.” The continent had a population of 1.3 billion. He compared this to the production figures from India, which manufactures 4 000 000 cars a year. It has a population of 1.4 billion. “We must be more competitive and ramp up production.” And that can be done through developing small, medium and micro enterprises (SMMEs). “Globally, all economies are driven by SMMEs, but the number of SMMEs in this country is too small for an economy the size of South Africa,” Majola added. “If we are to expand the SMME base in South Africa, we have to think outside the box, but within the law.” Collaborative efforts TASEZ has a team dedicated to helping develop SMMEs and providing skills development programmes. Gauteng MEC for Economic Development Tasneem Motara pointed out just how important the automotive sector is to South Africa. It contributed 4.9% to the gross domestic product (GDP) in 2023. “It is a huge player in the economy with the potential to grow.” However, she added, picking up on the issues of SMMES: “How do we address the challenges small businesses face?” Common challenges include struggling to access to markets; financing; to support; and infrastructure. The automotive sector had added challenges, such as being unable to receive reliable parts; a lack of entrepreneurial skills; and the onerous and expensive accreditation processes. Collaboration was key to growing small businesses. “We need to focus on the informal sector, but also ensure that industry bodies are included.” Skills development was crucial, she added. “We have to find meaningful solutions.”