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Tshwane Investment Summit exceeds expectations, garners R16bn in pledges

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By Mandla Mpangase The Tshwane Investment Summit 2025 exceeded expectations: against a target of attracting R5-billion in new investments, more than R16-billion has been pledged to the City’s various infrastructure sectors. However, investment is not merely about numbers, it is about people – every rand invested must translate into jobs, dignity and opportunity, says Gauteng MEC for Economic Development and Finance Lebogang Maile. The MEC was the key note speaker at the summit which was held in Menlyn Maine on 10 September 2025 under the tagline #TshwaneRising. The City of Tshwane highlighted its portfolio of catalytic opportunities for investors, focusing on: The automotive and manufacturing sector anchoring localisation, supply chain integration, and new energy vehicle production. Tourism, leveraging the City’s cultural and historical elements along with MICE (meetings, incentives, conferences, and exhibitions) assets. Property and construction, from revitalised government precincts to mixed-use developments at sites like Pretoria West and Rooiwal. Agro-processing, using peri-urban land to strengthen food systems, build resilience, and expand agri-value chains. This summit was not a ceremonial summit but a platform where investment must engage with opportunities to drive real outcomes, Maile noted. “Our policy ambitions, the strength of the private sector and the needs of our citizens must converge into concrete commitments.” Gauteng Investment Summit results The Tshwane Investment Summit followed in the footsteps of the inaugural Gauteng Investment Conference in April 2025, where R312-billion in pledges was secured, 117 bankable projects worth R239-billion were showcased, and demonstrated a potential to create 115 000 jobs across the province. “These pledges underscore Gauteng’s commitment to economic transformation, with an emphasis on advanced manufacturing, information, and communication technology (ICT), infrastructure development, and other key industries aligned with the province’s growth and development strategy.” Importantly, 57% of the investment commitments were secured from domestic investors, reflecting robust local confidence in the provincial economy, MEC Maile noted. The remaining pledges originated from international partners, notably the United States, France, and India – countries with established trade and investment relations with South Africa. “Gauteng remains the unrivalled case for investment in South Africa and on the African continent … Gauteng is not waiting for the world to change; it is shaping its own future,” Maile said. A comprehensive 25-year review of foreign direct investment (FDI) trends highlighted both Gauteng’s historical strengths in attracting investment and the areas requiring strategic enhancement to remain competitive in an increasingly technology-driven global economy. TASEZ impact As a key role player in attracting foreign and local direct investment, the Tshwane Automotive Special Economic Zone (TASEZ), is keenly aware of the challenges identified by investors: red tape, issues related to bulk infrastructure, energy and water constraints, and community challenges. During Phase 1 of its development, TASEZ attracted R14.72-billion in investment from both government and the private sector, and it is well on track to double that during Phase 2. MEC Maile added: “The inaugural City of Tshwane Investment Summit gives impetus to the need to turn Gauteng into an active investment node that will propel South Africa’s economy. “This happens at a critical moment where the International Monetary Fund has projected global growth at 2.8% in 2025, citing geopolitical instability and rising trade restrictions as key risks. “South Africa’s outlook is weaker, real GDP is expected to grow by just 1.0%, with inflation at 3.8%.” Fixed investment is forecasted to contract by 0.8% as high interest rates and policy inertia dampen private capital formation, Maile told the participants at the summit. Export growth is limited to 1.3% amid external shocks and new tariffs. The current account deficit is expected to widen to 1.1% of GDP. “Despite this, macro fundamentals remain intact: inflation is within target and fiscal consolidation is on track. However, weak infrastructure delivery and regulatory uncertainty continue to drag on growth potential. Foreign direct investment remains critical to stabilising and rebuilding momentum.” The MEC noted several key facts regarding the City of Tshwane: It is a city of 4.1 million people, a quarter of Gauteng’s population It generates R452-billion in real GDP, accounting for 28% of Gauteng’s GDP, giving it a GDP per capita of R109 555, higher than the Gauteng average. In 2024, Tshwane exports reach R400-billion, almost a third of Gauteng’s total. Imports exceed R197-billion, making Tshwane a hub of both production and consumption. More than 1.27 million people are employed in the city, amounting to a quarter of Gauteng’s workforce. Tshwane accounts for a significant share of Gauteng’s manufacturing jobs, contributing 220 jobs for each 1 000 manufacturing jobs in Gauteng. This reach spans from food and beverages, chemical products, automotive and transport equipment, to electrical machinery and components. The importance of the automotive manufacturing sector to the City of Tshwane was obvious during the summit, with the chairperson of TASEZ, Maoto Molefane, acting as the programme director. Also present at the summit was TASEZ CEO, Dr Bheka Zulu. Notably, Tshwane hosts 30% of Gauteng’s transport equipment jobs, the backbone of the automotive sector, the MEC noted. With BMW and Nissan anchoring the Automotive Industry Development Centre (AIDC) in the west of the city, and Ford and TASEZ in the east, “this city is leading South Africa into the era of new energy vehicles”. City of Tshwane opportunities At the same time, services are rising. Finance and insurance sectors employ over 12% of Tshwane’s workers, while education, health, and research institutions give this city an intellectual and innovative edge. The city is also significant in construction, contributing more than 23% of Gauteng’s employment in that sector. Together, these industries define Tshwane as a hub of industrial production and infrastructure development; a city that builds, assembles, and powers not just Gauteng, but South Africa, Maile said. “Johannesburg may be the financial engine; Ekurhuleni the logistics platform but Tshwane is the balancing axis; a city where government, industry, research, and exports converge.” The summit is a catalyst for the Tshwane Economic Revitalisation Strategy which has set a bold target of attracting between R17- and R26-billion in new investments, growth of 4% a year,

SA’s auto industry is the backbone of the country’s economic growth

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By Mandla Mpangase The automotive industry holds significant potential for shared prosperity through targeted industrial development, according to South Africa’s Deputy President Paul Mashatile. He was delivering the key note address on 14 August 2025 at this year’s Naacam Show currently taking place in Gqeberha, in the Eastern Cape. The automotive sector is one of South Africa’s most strategically important and internationally linked industries, accounting for 22.6% of manufacturing output and 5.2% of the country’s gross domestic product. Although the sector is a success story of industrial policy, it is important to increase employment in the sector. Currently 115 000 people are employed in the sector, with more than 80 000 of those working in component manufacturing. The deputy president noted that the industry is export-oriented, globally competitive, and plays a vital role in regional and national industrial development. In 2024, the component sector exported R62.5 billion of components. A sector under strain “We must never allow the loss of these gains because of external and internal pressures. I say this with concern because the employment levels in the sector have been under strain due to ongoing economic pressures and reduced production volumes.” Naacam, the National Association of Automotive Component and Allied Manufacturers, recorded 12 company closures over the past two years, affecting the livelihoods of 4 000 individuals. “What is of more concern are the recently released figures by Statistics South Africa showing that the country’s unemployment rate has climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter,” Mashatile said. “This latest figure is a clear indication that the nation’s unemployment crisis remains an urgent concern.” More effort is needed to combat unemployment, including improving education and skills to match labour market demands, promoting entrepreneurship and small enterprises, and investing in public employment programmes to generate jobs. TASEZ is currently attending Naacam to share knowledge and monitor the latest developments and trends in the sector. The deputy president noted that the government supports the automotive industry through a combination of investment incentives, improved policy frameworks, and infrastructure development, including: the Automotive Investment Scheme (AIS), which offers non-taxable cash grants to encourage investment in new models and components; tariffs and incentives available to local producers, aimed at boosting employment and strengthenong the automotive value chain; and Automotive Industry Development Centre (AIDC), which plays a crucial role in skills development, enterprise development, and managing incentive programmes. Guiding the sector is the South African Automotive Master Plan 2035 (SAAM), which aims to build a globally competitive and transformed industry. SAAM goals include growing vehicle production to 1% of global output (1.4 million vehicles), increasing local content to 60%, doubling employment to 224,000 employees, and deepening transformation and value addition, with 25% Black-owned involvement at the Tier 2 and Tier 3 component manufacturer level. The Automotive Production Development Programme Phase 2 is the policy programme intended to support and enable the realisation of the objectives of SAAM. “We recognise the industry’s significant role and see it as the backbone of our economic growth, promoting industrial development and encouraging innovation,” Mashatile said. “I am of the view that by increasing investment in research and development, we can use the power of technology to improve efficiency and sustainability, ensuring that our products and services stay competitive in the global market.” New opportunities for growth could be unlocked through nurturing a culture of collaboration and partnership among manufacturers, suppliers, and stakeholders, he added. Support for the African Continental Free Trade Area “This sector, not just in South Africa but in Africa as a whole, has emerged as a critical area of investment, providing substantial prospects for growth and development.” In this context, it was important to acknowledge the significance of the African Continental Free Trade Area (AfCFTA) agreement on economic integration and industrialisation, which is projected to draw additional international investment into the African automotive industry. “The agreement has the potential to significantly boost the automotive industry across the continent by reducing trade barriers, fostering regional value chains, and harmonising regulations. This could lead to increased production, lower costs for consumers, and a more competitive market.” The implementation of the agreement has the potential to lessen the dependency of African countries on developing countries for automotive components and completed vehicles by promoting regional value chains and increasing local production. “Creating a single continental market for goods and services could potentially lead to increased trade, investment, and job creation within Africa.” However, Mashatile added that this does not suggest that South Africa does not need other nations as trading partners. “We believe in diversifying our investments and engaging in trade with several partners.”  Mashatile explained that the Cabinet has adopted a new trade proposal to the United States that aims not just to settle the 30% tariff but also has ramifications for over 130 other trading partners who may reroute products into the South African market. “I must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House. “It is probable that South African suppliers who provide support to domestic original equipment manufacturers that export automobiles or integrated systems to the United States would experience volume cutbacks. This will put pressure on production planning, employment decisions, and investment choices.” The tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa’s automotive manufacturing ecosystem. “However, South Africa remains resilient and steadfast in its efforts to grow and protect our economy. We will continue engaging with the USA to identify practical solutions.” Attracting significant investment and driving innovation, could strengthen South Africa’s manufacturing capabilities and global competitiveness. Proactive transformation of the sector “We can increase localisation with existing and potential new original equipment manufacturer entrants to market, achieving a 5% growth in South Africa’s localisation rate, potentially resulting in R30-billion in new local procurement.” In addition, research has indicated that South Africa is well positioned to localise high-value new energy

Auto industry continues to drive investment, jobs and innovation

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In his weekly newsletter, President Cyril Ramaphosa wrote about the importance of the automotive manufacturing sector in transforming the economic sector, creating jobs, providing much-needed skills development, and driving innovation.  South Africa has a well-established auto manufacturing industry that is more than a century old. It has proven to be one of the most resilient sectors of our economy.  Since the first assembly plants were established in the Eastern Cape in the 1920s, the auto industry has grown to become the largest manufacturing sector in the country. South Africa’s role in global vehicle manufacturing has expanded and grown.  Auto companies like Toyota, Ford, Nissan, Volkswagen, BMW and Mercedes-Benz have plants here in our country that produce vehicles for the local market and for export to many other countries in the world.   A number of these companies continue to expand their investments in our country. The sector currently supports more than 115,000 direct manufacturing jobs and more than 500,000 across the value chain. It contributes approximately 5.3% to GDP.  However, the industry is under growing pressure. The introduction of stricter vehicle emissions regulations in leading export destinations such as the European Union, as well as new tariffs from the United States, are expected to have a significant impact on the sector.  With exports currently accounting for approximately two-thirds of local vehicle production, it is critical that we strengthen the sector to not only overcome current headwinds, but to ensure its long-term sustainability.  Last week, I attended the launch of BMW’s new X3 plug-in hybrid at the company’s Rosslyn plant in Tshwane. South Africa is the exclusive global production site for this model. The shift from internal combustion engines (ICE) towards hybrid and electric vehicles (EVs) in a number of markets means that green mobility is becoming increasingly important for automotive manufacturers. The latest investment by BMW following their pledge at our South Africa Investment Conference in 2023 is a welcome signal to investors that South Africa remains a favourable place to do business. As Government, we are working to ensure there is an enabling regulatory and policy environment to support the growth of this burgeoning industrial activity.  Our five South Africa Investment Conferences, where we invited companies to make investment pledges that are translated into actual investments, is an important platform for companies to declare their investment intention to South Africa and demonstrate that South Africa is an investable market. Government support to the car manufacturing industry through the Automotive Production and Development Programme will position South Africa as a key global manufacturing base for vehicles of the future.  This isn’t just critical to the sustainability of the sector, but to growing the workforce and skills of the future.  BMW, for example, has a training academy that focuses on competencies like EV assembly and robotics. The company is also a founding partner of the Youth Employment Service (YES), which was established between Government and the private sector to create work experience opportunities for young people. This initiative introduces young people into the world of work for a year of experience and training. Often if they meet the standards of the participating company they stand a good chance of being absorbed as employees of the company. BMW’s participation in this programme has supported more than 3,500 young people with training and work placements across all nine provinces.  We have invited more companies to participate in the Youth Employment Service (YES) programme as broadly as BMW has done. We are working to ensure that more production takes place locally, creating more employment. To do this, we must upskill our workforce and facilitate the creation of new companies across the value chain. As such, we welcome initiatives by the sector to support skills development through initiatives such as the Centre of Excellence at the Tshwane Automotive Special Economic Zone. This centre has an artisan training academy, an incubation hub and a science, technology, engineering and mathematics programme for high school learners.  There are also a number of industry-driven training initiatives focusing on technical and artisanal skills, and deepening collaboration between Government departments, vocational colleges and companies to grow a new skills pipeline. Protecting existing jobs in the sector is paramount, particularly in the light of the looming US tariffs. The need to diversify our export base has become all the greater. We are committed to working with the sector to expand its continental footprint, building on the already strong growth of exports to the SADC region and leveraging the trade relationships that exist.  Amid these challenges, South Africa’s auto industry is making the investments needed to build resilience, protect jobs and lead the way into a new era of green mobility. 

Manufacturing could transform the economy and create jobs

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By Mandla Mpangase Expanding manufacturing is not merely a desirable goal for Africa, it is an essential foundation on which the continent’s economic transformation, job creation, and long-term prosperity depend. This strong message was shared by Gauteng Finance and Economic Development MEC Lebogang Maile at the Manufacturing Indaba 2025, taking place at the Sandton Convention Centre in Johannesburg. “This year’s gathering takes place under complex global economic and political realities where the African continent, and the entire global south, must re-think its place in the geo-political landscape,” the MEC said. “Re-thinking our place in this landscape also necessitates that we re-think how we are managing our economies and trade relationships,” Maile said. “It is becoming increasingly evident that the future of our continent lies in our ability to strengthen collaborations.” The message resonates strongly with the Tshwane Automotive Special Economic Zone (TASEZ), which has set out on a mission to be a catalyst for employment, transformation, and socio-economic development and industry growth by being a node attracting automotive suppliers and automotive manufacturers, assemblers and supporting services. The MEC noted that agriculture and raw material exports had long been the backbone of African economies, the future lies in a sector that has fuelled the rise of every modern economy: manufacturing. “The expansion of manufacturing is not merely a desirable goal for the continent. It is an essential foundation upon which Africa’s economic transformation, job creation, and long-term prosperity depend.” The manufacturing sector’s ability to absorb large numbers of workers, foster innovation, and build complex value chains, makes it a critical pillar for sustainable development, Maile added. The South African Automotive Master Plan Something that is important to the TASEZ efforts to support the South African Automotive Master Plan 2025, is that of localisation and by extension beneficiation of materials that are mined in the country. The master plan sets out several priorities to deliver on its vision of creating “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”. Included in the priorities is increasing local content used in manufacturing by 60% by 2035 – critical to this is the ability to beneficiate local minerals for use in manufacturing. “Exporting raw materials without adding value reinforces economic dependence on foreign nations that process and manufacture these materials for profit,” MEC Maile noted. Manufacturing offers an opportunity to move up the value chain, diversify economies, and reduce dependence on volatile international markets. “The continent’s demographic dividend could be the most important instrument in defining the future of the manufacturing sector,” he added. Manufacturing is also uniquely placed to provide the scale and diversity of jobs required for Africa’s youth – Africa has a young population that is growing. It is expected that the continent’s population will double by 2050 to reach 2.5 billion people, with the majority being under the age of 25. “Manufacturing can offer employment across a spectrum of skill levels, from low-skilled assembly to high-skilled engineering. Moreover, manufacturing jobs tend to offer higher wages, better job security, and more opportunities for advancement compared to informal and even agricultural work.” Adding value – and jobs Value addition not only increases export revenues but also fosters the development of supporting industries such as packaging, transportation, marketing, and financial services. These interlinked sectors create a multiplier effect, generating jobs and boosting incomes across the economy. “In the Gauteng Province, we see the value of our investment in the manufacturing sector,” Maile said. It is the largest sector in the provincial economy, employing more than 500 000 people, and is also the biggest in South Africa, contributing more than 33% to the gross domestic product. Manufacturing is also a powerful conduit for technology transfer. “As African firms engage in manufacturing, they gain access to new machinery, production processes, and management techniques.” Partnerships with foreign firms and integration into global value chains further accelerate the transfer of knowledge and skills. At the moment, Africa’s share of global manufacturing output remains less than 2%. “But the continent’s potential is enormous,” MEC Maile said. The African Continental Free Trade Area, which seeks to create a single market of over a billion people, offers an unprecedented opportunity for manufacturers to achieve economies of scale, access new markets, and increase competitiveness. “With the right policies, African manufacturers can integrate into global value chains, supplying not only regional markets but also Europe, Asia, and the Americas.” Despite its promise, the development of manufacturing in Africa faces significant hurdles, including inadequate infrastructure, unreliable energy supplies, limited access to finance, bureaucratic red tape, and skills gaps. “Addressing these challenges requires coordinated action by governments, the private sector, and international partners.” Key is investing in infrastructure. Reliable roads, ports, energy, and digital networks are essential for competitive manufacturing. “We must also prioritise improving the business environment. Streamlined regulations and transparent governance attract investment and foster entrepreneurship.” Skills are needed Another message from Maile hit home for TASEZ: making the building of human capital a key priority. TASEZ has launched its training academy to provide business-related skills to small, medium, and micro enterprises (SMMEs) as well as technical skills to workers who will be dealing with a changed automotive manufacturing sector that is focused on new energy vehicles. “Education and vocational training tailored to industry needs will ensure a skilled and adaptable workforce,” Maile told the Manufacturing Indaba. In addition, regional integration is one of the most critical priorities if the continent is to realise its manufacturing potential. “Strengthening trade ties and harmonising regulations across borders is crucial,” the MEC said. “Regional integration significantly boosts manufacturing economic development by expanding markets, fostering specialisation, and promoting innovation and efficiency. It allows countries to overcome limitations of smaller domestic markets, creating larger customer bases and facilitating economies of scale in manufacturing.” Integration also encourages specialisation within regional value chains, leading to increased efficiency and competitiveness. In his conclusion, the MEC reminded the audience: “The choices made today will

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 makes an impact beyond SA’s borders

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By Mandla Mpangase In a first for a South African special economic zone, the Tshwane Automotive Special Economic Zone (TASEZ) welcomed the heads of mission from the Southern African Development Community (SADC) to share information and talk about unlocking opportunities for economic growth in the region. On Monday, 1 July 2025 the TASEZ team, headed by CEO Dr Bheka Zulu, rolled out the red carpet for the distinguished SADC delegation – ambassadors, high commissioners, and chargé d’affaires – along with representatives from the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition, and Brand South Africa and Trade and Investment KwaZulu-Natal. This gathering was not just a simple meeting – it was a deliberate step toward weaving stronger ties between neighbours, aligning with the goals of SADC, the Southern Africa Customs Union, and the African Continental Free Trade Area. TASEZ gave the delegation a front-row seat to South Africa’s important automotive manufacturing industry and the exciting opportunities for partnerships and investments that could uplift not just South Africa, but the entire SADC region. Welcoming the SADC delegation to Africa’s first automotive city, Dr Zulu provided a telling context for their visit: TASEZ has a footprint beyond South Africa. “We are part of the 244 plus SEZs that exist in the African continent, and we’re part of the 5 000 plus that exist globally.” Driving industrial growth SEZs are seen as economic and infrastructural drivers. TASEZ was set up to enhance a significant investment from the Ford Motor Company – bringing component manufacturers closer to the Ford factory in Silverton, ensuring a streamlined just-in-time and just-in-sequence provision of essential parts for the Ford Ranger. Critical to the success of TASEZ was the joint strategic partnership between all three tiers of government via the Department of Trade, Industry and Competition, the Gauteng Department of Economic Development, and the City of Tshwane along with catalytic partnerships with the private sector. Over the five years TASEZ has been in development, is has seen 8 000 direct jobs and 15 000 indirect jobs created in the value chain. In addition, the SEZ has provided R1.7-billion towards small, medium, and micro enterprise (SMME) projects. “We’ve been a catalyst for about R30-billion investment to date,” Dr Zulu. He noted that none of this would have happened if it were not for the facilitation of the diplomats. Dr Zulu emphasised the lessons learnt by TASEZ during its development, offering to share the hard-earned knowledge with SADC. “We have a test case, a real case that has worked in the short time of five years … TASEZ has been a game-changer in an industry that contributes 5.3% to the country’s gross domestic product (GDP). “The contribution of TASEZ with its partners within for Ford, we are looking at having contributed 1% to the GDP,” Dr Zulu noted. Cross-border partnerships However, regional integration was important to the SEZ. “We cannot grow alone as a country; we need to grow with our brothers and sisters within the south and the continent.” Manufacturing development in Africa is viewed as an opportunity to lessen dependence on commodities and engage in economic diversification as way to boost competitiveness in the region. Despite this, the continent still accounts for a very low share of global manufacturing and global manufacturing exports. Recent research indicates that economic development requires structural change from low to high productivity activities and that the industrial sector is a key engine of growth in the development process, most particularly the growth of manufacturing development. Diplomatic missions play a crucial role in facilitating investment flows and promoting economic cooperation between countries. They serve as an important conduit for information sharing, networking, and advocacy on behalf of their countries. The goals of the joint meeting were: SADC’s Vision 2050 Andrew Maswanganyi, from the Department of International Relations and Cooperation’s Directorate: Economic Integration and Infrastructure, pointed out that regional integration was about “the small things we do”. He noted that SADC’s Vision 2050 was an important strategy looking to create a region where its people have food security, are healthy and educated. SADC’s Vision 2050 aims to create a peaceful, inclusive, and competitive region that is middle-to high-income industrialised, where all citizens enjoy sustainable economic well-being, justice, and freedom. It is built on the three pillars of industrial development and market integration, infrastructure development, and peace, security, and good governance. The meeting at TASEZ was “an opportunity for South Africa and its sister countries to cement strong bonds of friendship”, Maswanganyi said. The chairperson of the SADC group, Zimbabwe’s ambassador David Hamadziripi voiced appreciation of the opportunity witness first-hand what is being done in South Africa in its push for industrialisation. The visit by the delegation “not only deepens our understanding of South Africa’s industrial strategy but also speaks to the spirit of regional cooperation in shared development”, Hamadziripi said. Some of SADC’s member states were grappling with the imperative of industrialisation, job creation and inclusive economic transformation. SEZ’s as catalysts for growth “This special economic zone is a testament to how targeted investment, infrastructure development and strategic collaboration between government, the private sector and local communities can create a dynamic industrial hub with strong linkages to both domestic and global value chains.” TASEZ offers important lessons on how SADC can leverage special economic zones to drive manufacturing innovation and trade competitiveness, while also building infrastructure, promoting SMMEs, building critical skills and creating opportunities for young people. “Special economic zones can serve as a model or as model platforms for collaboration with the potential to align such initiatives with cross-border supply chains, promote investment partnerships and share these practices across our member states.” Hamadziripi added: “We are also cognisant that industrialisation can be driven by a combination of factors, including policy coherence, skills development, innovation and infrastructure investment.” The visit to TASEZ was not just about observing, but also about learning and exploring how SADC can replicate and adapt these lessons to their respective countries. The automotive sector has

TASEZ shows TIPS delegation what is possible in turning policy into reality

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By Mandla Mpangase Hosting a group of government officials from across a range of economic-linked departments, the Tshwane Automotive Special Economic Zone used the time to provide insights into what it takes to build a successful special economic zone in South Africa. The delegation, organised by the Trade and Industrial Policy Strategies (TIPS), undertook a community of practice visit to Africa’s first automotive city on 12 March 2025, where they engaged with the TASEZ executive team, led by CEO Dr Bheka Zulu. The visit allowed for the sharing of knowledge and learnings from TASEZ, as a newcomer to the SEZ space in South Africa. “What makes us unique 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. The community of practice process, which is facilitated by TIPS, aims to enhance best practices in relation to the implementation of industrial policy across government. The process is also used to build a more open and safe space for sharing experiences and learnings concerning industrial policy. Departments involved in the community of practice include the Presidency; the Department of Planning, Monitoring and Evaluation; National Treasury; the Department of Trade, Industry and Competition; the Department of Public Enterprises; the Department of Mineral Resources and Energy; the Department of Small Business Development; and the government organisations related to science, technology and innovation. About TASEZ Known as Africa’s first automotive city, TASEZ is a relatively new SEZ kid on the block, with the ability to punch above its weight. The SEZ was set up to boost South Africa’s automotive industry, drive investment in economic growth, create jobs and develop skills, alongside positioning the City of Tshwane, the Gauteng province, and the country, within the African and global trade environment. Established in 2020, Phase 1 of TASEZ’s development was galvanised by the need to expand the Ford Motor Company of Southern Africa’s production from 160 000 a year to 200 000. Ford’s component manufacturers are based in the SEZ, along with the Ford Frame plant. With a deadline to produce the next generation Ford Ranger within 18 months, TASEZ became the fastest SEZ developed from scratch in South Africa. It had 11 operational investors in less than two years. “Right now, 720 cars are produced every day because of what we’ve created in this zone,” Dr Zulu said. Driven by commitment Answering the reason why the TIPS team visited TASEZ was easy: establishing Africa’s first automotive city was about turning a vision into reality. “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,” said Dr Zulu. Ford had an investment ready and waiting, with a tight deadline and alternative locations, while South Africa needed the investment to drive industrialisation and economic transformation. The economic climate at the start of the project could not have been worse, with a global downturn amidst a pandemic, businesses closing their doors, jobs being lost, borders closing and the global focus on fighting an ever-evolving virus. Despite all of that, a team was put into place, each member with a role to play in the bigger picture of developing from scratch a dedicated automotive special economic zone made up of Ford component manufacturers. TASEZ showed the country – and the world – South Africa has what it takes to deliver a complex internationally recognised project that delivers on the mandate set out in the National Development Plan of tackling the triple challenges of poverty eradiation, social and economic transformation and creating jobs. Phase 1 economic impact Turning the policy set out in the Special Economic Zones Act into reality, TASEZ supports inclusive economic participation by broadening participation to include small, medium and micro enterprises (SMMEs) and promote skills development and technology transfer. During the development of its Phase 1, TASEZ made a significant economic impact on the local economy, on the provincial economy and on the country’s economy. “TASEZ contributed 1% to the national GDP (gross domestic product during Phase 1,” Dr Zulu notes, adding that he envisages doubling that number through the development of Phase 2. In Phase 1 TASEZ spent R1.7-billion on construction procurement from 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 mainly based in the neighbouring communities of Eersterust, Mamelodi, and Nellmapius. In addition, 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 also created 3 311 permanent jobs, with 32% going to women, 65.47% to youth, and 0.83% to people with disabilities. Concluding the visit to TASEZ, the TIPS team noted: “The visit provided some important insights for government officials as to how policy translates into reality and practice.”

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 to host 2025 State of the Province Address

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By Mandla Mpangase Africa’s first automotive city, the Tshwane Automotive Special Economic Zone (TASEZ) is hosting the official opening of the Gauteng Provincial Legislature and the State of the Province Address – the first special economic zone to do so. TASEZ being the venue for this year’s address is a powerful statement; it acknowledges the role the SEZ’s commitment to economic diversification and innovation. The SEZ, with its focus on the automotive industry and related sectors, represents a key driver of economic growth in Gauteng and hosting the event at TASEZ draws attention to the importance of the automotive manufacturing and technology sectors. Addressing a pre-State of the Province Address luncheon on 20 February 2025 the Speaker of the Provincial Legislation, Morakane Mosupyoe, explained why TASEZ had been selected to host this mammoth event. This special economic zone (SEZ) set up in the City of Tshwane was strategically positioned to support the expansion of the Ford Motor Company’s plan in Silverton assembly plant. “When the initial agreement was signed, I was MEC for economic development, so I was part of the team that was negotiating with Ford,” Mosupyoe said. “We had serious competition from Thailand by the way, so we fought for that investment to brought here, and ultimately we got it going.” Ford brought a R15-billion investment to the country to expand its South African manufacturing operations – one of the largest-ever investments in the local automotive industry. With that came further investments from component manufacturers, who were all based in the TASEZ hub, alongside the Ford assembly plant. The impact on the provincial and local economy was noticeable, with new jobs and business opportunities opening up for small, medium and micro enterprises – particularly within the communities surrounding the SEZ. With the first phase of TASEZ now complete – it was set up in a record 18 months, during a global economic crisis and a pandemic, the SEZ is now looking to the future. Premier Panyaza Lesufi decided that because TASEZ is going into its second phase, Gauteng should take the State Of The Province Address to the hub to highlight the work that has been going on there, the Speaker said. “I’m sure the premier will talk to the jobs that were created, as well as the many other impacts that came from the relationship.” Gauteng Province is one of the three strategic state partnerships that support TASEZ, with the other two being the Department of Trade, Industry and Competition, and the City of Tshwane. “We need to appreciate in these relationships boost the automotive manufacturing industry,” Mosupyoe said. TASEZ and its partners, including all its tenants, drive investment and economic growth, create jobs and it develop skills, she added. It positions South Africa as a gateway to Africa and global trade, speaks to infrastructure and economic development. The much-anticipated address takes place on Monday, 24 February 2025, under the theme “Harnessing Parliamentary Diplomacy for the Realisation of Global Solidarity, Equality and Sustainability”. The address is used by the premier to reflect on the provincial government’s achievements and challenges of the past year. It also serves as a platform to outline the province’s key priorities and plans for the year ahead. The State of the Province Address provides a crucial platform for the premier to communicate with the people of Gauteng, allowing for transparency and accountability as the provincial government outlines its key policy objectives and deliverables for this year. No doubt important topics such as economic growth, job creation, infrastructure development, and social service delivery will all fall under the spotlight.