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Gauteng takes the wheel: Driving Africa’s NEV future

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South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity, and the economic heartland of the country must take the lead in embracing New Energy Vehicles as a core economic sector for the country – and the rest of Africa, writes Lebogang Maile, Gauteng MEC for Finance and Economic Development. Gauteng is stepping up to lead South Africa, and Africa, into the new-energy vehicle (NEV) era. The province, already the country’s economic and industrial centre, is positioning itself as the continent’s NEV hub. The province is set to host its inaugural NEV Summit on 22–23 October 2025, during the country’s Transport Month, under the auspices of the Gauteng Growth and Development Agency, along with the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity. Global markets, particularly the European Union, are tightening carbon regulations. For South Africa to keep exporting vehicles and stay competitive, it must move fast to build an industry that produces low- and zero-emission cars. Laying the foundation The transition is backed by strong policy frameworks. The South African Automotive Master Plan 2035 (SAAM 2035) sets clear goals for increasing local content, boosting exports, and creating inclusive growth. The government’s White Paper on electric vehicles, approved at the end of 2023, provides a roadmap for building the NEV ecosystem from production and charging infrastructure to skills development and consumer incentives. Although the paper references electric vehicles, South Africa must take account of other green initiatives such as hydrogen and battery. The policy direction is clear – our job is to make sure Gauteng becomes the first mover. The NEV transition is about jobs, skills, and industrialisation not just greener cars. We are ready to lead Africa in this journey. Gauteng: South Africa’s economic hub South Africa’s economic hub has all the right ingredients: skilled workers, advanced manufacturing infrastructure, financial and logistics networks, and a strong automotive heritage. Ford, based in the City of Tshwane, has been in South Africa for over a century. Gauteng’s existing automotive value chain makes it the natural home for Africa’s NEV future. The province already hosts major original equipment manufacturers like BMW, Ford, Nissan, Tata and Iveco, and supplier networks that can pivot to battery, electronics, and component manufacturing. We already have the backbone, from vehicle assemblers to tiered suppliers. What we are doing now is aligning that value chain with new technologies, from battery assembly to software integration. The transition is not just about attracting investment; it’s about future-proofing Gauteng’s manufacturing economy. Turning policy into factories Gauteng is now focused on turning national policy into tangible projects. The Automotive Investment Scheme (AIS) and new EV production incentives announced by the Department of Trade, Industry and Competition (the dtic), including a 150% investment allowance for qualifying projects, are key tools to make that happen. We are working closely with the dtic and industry stakeholders to streamline approvals and remove red tape. Investors do not want promises, they want certainty. Gauteng is offering that – a clear pathway from policy to plant. But we are also well aware of the challenges we face, from electricity reliability and logistics to the high costs of new technologies. One of the key projects we have put in place to overcome these, is the creation of a dedicated automotive hub in the City of Tshwane, with stable power, fast-tracked permitting, and shared testing and recycling facilities to lower entry barriers for manufacturers. Building demand and inclusion A vibrant NEV industry also needs a domestic market, and Gauteng is exploring ways to stimulate demand through public fleet electrification, taxi modernisation programmes, and municipal procurement. Demand creation will be critical to attracting more investors. OEMs and suppliers want to see that South Africa is serious about NEVs – that there is a real market for these vehicles. If we in government lead by example through fleet conversion, others will follow. Gauteng has the opportunity to set that example for the rest of the continent. Beyond manufacturing, Gauteng’s NEV strategy emphasises skills development and inclusion. The transition is being designed to create opportunities for black-owned medium, small, and micro enterprises, youth, and women entrepreneurs in new parts of the value chain, from charging infrastructure to digital mobility services. A turning point for the economy The upcoming NEV Summit is expected to produce a clear action plan: identifying priority sites, announcing anchor investors, setting timelines for disbursing incentives, and mapping out power and logistics upgrades. This summit is not just about speeches; it is about signatures. We want commitments, timelines, and projects that will create jobs and secure Gauteng’s place at the centre of Africa’s new energy future. If Gauteng can convert its strategic intent into action, the province will not only revitalise South Africa’s automotive manufacturing base but also anchor the continent’s NEV revolution. The race to lead Africa’s green mobility future has begun and Gauteng plans to be first across the line.

Gauteng assesses its readiness for a transformed automotive sector

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By Mandla Mpangase Gauteng has ambitious plans to turn the province into the automotive hub of Africa. So serious is the intention, that the leading role players in the South African automotive sector gathered in Johannesburg to share insights into what is needed to make that happen. This comes amidst a rapidly evolving global automotive sector, the looming carbon neutral targets for vehicle imports into the European Union by 2035, and the current turmoil surrounding increased tariffs being imposed on goods entering the United States. Addressing the participants at the Automotive Sector Policy Dialogue, Gauteng’s MEC for finance and economic development, Lebogang Maile, emphasised the significance of the sector to the country’s economy. In 2024, the automotive industry contributed 5.2% towards the GDP of the country, with 110 000 direct jobs – 33 154 in the original equipment manufacturers and 81 860 people employed by component manufacturers. Gauteng is home to three original equipment manufacturers, Nissan, Ford, and BMW – all based in the City of Tshwane along with the Tshwane Automotive Special Economic Zone and the Automotive Industry Development Centre. Together, the three OEMs produced 1.8 million vehicles between 2014 and 2023, accounting for 32.8% of South Africa’s vehicle production. “According to the National Association of Automobile Manufacturers of South Africa (Naamsa), Gauteng’s automotive sector is expected to gain momentum, especially with the establishment of the Tshwane Automotive City (TAC), which will serve as an integrated logistics framework focusing on inland ports and manufacturing hubs linked to rail corridors linking Tshwane with strategic ports in South Africa and SADC (the Southern African Development Community),” MEC Maile noted. A different-looking automotive sector Speaking on the shift from internal combustion engines towards new energy vehicles (NEVs), Maile spoke of the urgency required by the automotive sector to adjust its production value chains and technologies to transition towards NEVs to retain and grow its existing markets share. He also identified the challenges the automotive sector faces, including: Gauteng being a landlocked province far from regional seaports, faced with logistical challenges that often lead to expensive transportation costs to reach global markets; Congestion at South Africa’s ports has a negative impact as the automotive sector relies on international trade in terms of sourcing manufacturing components and shipping the final product; Inconsistent electricity supply; A lack of support for Tier 2 and Tier 3 manufacturers; OEMs battling technological challenges that come with transitioning to NEVs, which require high technical and technological skills; The recent 30% tariffs imposed by the United States on South African exports poses a risk to the sector, puts pressure on the local OEMs, and poses a risk to jobs; and Transformation is happening at a snail’s pace, which stifles the growth of township businesses. What this all means, Maile told the participants, is that a different approach was needed to support and develop the sector. “There is a need for an inclusive approach towards transforming the sector.” While the province had made progress in terms of establishing the AIDC supplier park and the development of TASEZ, much more needed to be done to make the sector competitive, MEC Maile said. The dialogue was held to assess the province’s readiness for the NEV transition; to identify the infrastructure investment requirements for the transition; gather information into the support requirements for Tier 1, Tier 2, and Tier 3 component manufacturers; highlight skills requirements, funding collaborations and partnerships to support the transition; and understand the implication of US tariffs and potential new markets for South African OEMs. In line with the discussion on NEVs, the province will host the inaugural NEV Summit in October, where industry players will share further knowledge on the sector. For further information on the NEV Summit visit the AIDC website.   

Gauteng MEC for economic development to table budget vote

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By Mandla Mpangase Gauteng’s MEC for economic development, Lebogang Maile, is gearing up to deliver the Department of Economic Development’s budget vote in the Gauteng Legislature on Wednesday, 16 July 2025. The budget vote is a critical tool that shapes the economic landscape of the province, creating investment opportunities, allowing for robust and diverse business development, as well as transforming the economic sectors to include emerging entrepreneurs, small, medium and micro enterprises (SMMEs), and township-based businesses. It is a critical tool in ensuring that the services are delivered to Gauteng’s residents. With its focus on strengthening the impact of the province’s special economic zones (SEZs) and the automotive manufacturing sector, the Tshwane Special Economic Zone (TASEZ) is looking forward to hearing what MEC Maile has planned. As the country’s flagship SEZ, TASEZ is eager to play its part in growing the province’s economy and promote infrastructure development. TASEZ is the first hybrid model created though the strategic partnership of all three tiers of government so it brings in a different approach to that used in South Africa’s SEZ sector previously. Established as a strategic partnership between the Department of Trade, Industry and Competition (the dtic), the Gauteng Provincial Government, and the City of Tshwane, in collaboration with the Ford Motor Company, TASEZ has become a model of effective collaboration between the public and private sectors. Since its inception in 2020, TASEZ has attracted over R28-billion in direct and indirect investment, and supported the creation of more than 8 000 construction and permanent indirect jobs, many of which are for young people from previously marginalised communities. Additionally, more than 10 000 jobs across the supply chain have been created. Furthermore, more than R1.7-billion was spent on SMMEs in and around the City of Tshwane between 2021 and 2024. This was a result of a social compact between TASEZ and its surrounding communities. Gauteng, the economic heartland of the country, sets the pace for South Africa’s growth so what is said in the MEC’s speech should be of importance to all: young students need to know what opportunities may lie ahead, businesses will want to understand the government’s priorities and where companies can support transformation, residents want reassurance that the province they live in provides security economically and socially. It must be a giant step in achieving the vision set out in the country’s National Development Plan: to eliminate poverty and reduce inequality by 2030. As the NDP notes, this can only be achieved if South Africa draws on the energies of its people, grows an inclusive economy, builds capabilities, enhances the capacity of the state, and promotes leadership and partnerships throughout society. By understanding the provincial budget, all South Africans can gain insight into how public resources are used and can better advocate for policies that will benefit their communities. It is not just about numbers; it is about the services, opportunities – and costs that shape everyday life.

TASEZ greets new Gauteng MEC, views operations

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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.

State of the Province notes Gauteng is ready to create new opportunities

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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.”