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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. 

Budget vote a commitment to economic justice, inclusion and transformation

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By Mandla Mpangase Sustainable economic growth requires significant investment in economic infrastructure. With that in mind, Gauteng Finance and Economic Development MEC Lebogang Maile identified eight areas that will help drive inclusive growth and job creation in his budget vote speech presented to the Gauteng Legislature today, 16 July 2025. MEC Maile presented a R1.71 -billion budget for the 2025/26 financial year “We are prioritising projects that drive industrial expansion, urban renewal, and township revitalisation, fostering an environment in which businesses can flourish and contribute to local economic development,” Maile said. In keeping with the national directive to drive inclusive growth and job creation, reduce poverty, and build a capable developmental state, the Gauteng Department of Economic Development has developed a comprehensive five-year strategy and an Annual Performance Plan with these three strategic frameworks front as its focus areas. A decade of economic challenges South Africa’s economic engine – the Gauteng province – has faced a decade of ongoing challenges, including a listless economy, rising unemployment, sluggish investor sentiment, and economic sectors that remain untransformed. In the decade 2014 to 2024 Gauteng’s economy grew by an estimated 8%, rising from R1.313-trillion in 2014 to R1.419-trillion 10 years later, an average of just 0.8% yearly. At the same time, however, the population grew by some 25%. The province’s economy also underwent structural changes, with finance growing to contribute 34% to provincial gross domestic product (GDP), up from 29.2% in 2013, while manufacturing dropped to 14.8%, from 17.9% in 2013. This shift is a significant one. “The manufacturing and construction sectors are crucial employers for our low-skilled workforce cohort,” MEC Maile noted. Like manufacturing, construction too is on a downward trend. Unemployment remains the most urgent socio-economic crisis. Quarter 1 of 2025 showed that Gauteng’s unemployment rate stood at 34.7%, with youth unemployment at 48.4%. However, Maile noted, the South African Reserve Bank projects a promising GDP growth of 1.3% for 2025. “Despite several headwinds threatening this forecast, including the risk of electricity constraints, infrastructure challenges, and trade tariffs concerns, there is potential for significant growth in the South African economy,” MEC Maile said. Eight focus areas The Department of Economic Development will focus on eight areas: Revenue enhancement. Strengthening the province’s fiscal capacity is at the heart of the department’s strategy. Economic infrastructure. Sustainable economic growth requires significant investment in economic infrastructure. Support for SMMEs and cooperatives. SMMEs play a vital role in job creation and economic transformation and need to be supported through financial assistance, capacity building, and expanded market access, ensuring their meaningful contribution to economic growth and employment. Structural transformation. This is about transforming historically marginalised sectors, creating opportunities for disadvantaged groups with a strong focus on Broad-based Black Economic Empowerment compliance and promoting inclusive growth. Building a capable state. Ensuring the provincial government has the institutional capacity, technical expertise, and governance systems necessary to drive inclusive economic growth. Revitalising the township economy. The township economy is a critical driver of employment and entrepreneurship yet continues to face systemic barriers such as limited access to finance, infrastructure deficits, and market exclusion. Re-industrialisation. This will enhance competitiveness, deepening localisation, and fostering sustainable manufacturing value chains. Research and development. This commitment will position Gauteng as a leader in innovation and the knowledge economy, driving long-term competitiveness. As part of its ongoing commitment to catalyse inclusive growth and regional industrialisation, the department has outlined key infrastructure development targets for the 2025/26 financial year, which are central to its objective of operationalising special economic zones across Gauteng by 2030. In addition, the department will also advance the Industrial Parks Programme which is designed to stimulate local manufacturing, support small, medium, and micro enterprises (SMMEs), and revitalise economic nodes across the province. Impact on TASEZ TASEZ is being allocated R122.5-million to continue its facilitation and provision of a secure high tech business environment for manufacturers within the automotive sector. The Gauteng Department of Economic Development is a strategic shareholder in TASEZ, along with the Department of Trade, Industry, and Competition, and the City of Tshwane. Gauteng’s funds go towards TASEZ’s internal bulk infrastructure. TASEZ is now in the process of rolling out its Phase 2 development. “During the next phase of our development, we will continue with our focus on supporting SMMEs through procurement spend and training opportunities and we will also be expanding our support to incorporate black industrialists,” TASEZ CEO, Dr Bheka Zulu, said. In addition, the budget vote also set an an ambitious investment target for Africa’s first automotive city – of attracting R1.5-billion. The growth of the SEZs and industrial parks is being led by the Gauteng Growth and Development Agency, with the aim of unlocking investment, driving innovation, and accelerating job creation. The department also plans to support 2 040 SMME beneficiaries across Gauteng during 2025/26. A total of R769.3-million will go to trade and sector development with a specific focus on SMMEs and cooperatives; R289.5 million will be directed towards integrated economic development services; R134.2 million goes to business regulation and governance; R275.4 million will be spent on economic planning, particularly in research and development; and R244.9-million has been allocated to corporate services and financial management. In his conclusion, MEC Maile said: “Economic development is crucial for improving living standards, reducing poverty, and enhancing the overall well-being of our society. “It drives job creation, attracts investment, and fosters innovation, leading to increased tax revenues and improved public services. “Ultimately, economic development strengthens communities and creates a more prosperous and sustainable future. It is for this reason that we must treat the work of this department as a crucial component of building a better Gauteng.” And in keeping with its own vision of being the benchmark for SEZs in South Africa, while contributing to the growth of the automotive sector, being a major creator of new businesses and a contributor to employment, transformation, and socio-economic development, TASEZ has taken the budget vote message to heart. “As a global role player, TASEZ is a catalyst for economic growth

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 Phase 2 gets serious with handover of new reservoir site

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By Mandla Mpangase On a small, dusty hill in La Montagne in the City of Tshwane, a small but dedicated group gathered to officially turn the first sod where a reservoir will be constructed to provide water to the Tshwane Automotive Special Economic Zone. The construction site, a crucial element of TASEZ’s Phase 2, was officially turned over to MES Major Projects, a wholly black-owned local company. Joining TASEZ CEO Dr Bheka Zulu at the event were leaders from the City of Tshwane, including Executive Mayor Dr Nasiphi Moya, Deputy Executive Mayor, Eugene Modise, and several MMCs, a team from the newly appointed contractor lead by managing director Musa Sambo, councillors from the neighbouring townships of Eersterust, Mamelodi and Nellmapius, and members of the local communities. So important is this development, TASEZ board member for infrastructure development, Vuyo Zithumane, noted: “We are launching one of the critical dependencies for the entire development of others, and especially Phase 2.” She added that the political principals in the City of Tshwane took the conscious decision to prioritise this development, making a financial allocation within the City’s budget. “We are very proud to be associated with this initiative. If you look at the history of TASEZ and the mandate that they have been given, I can say without any fear of contradiction, that they’ve been able to fulfil their mandate. They have delivered what was expected of them, far ahead of the targets that they had set for themselves. “TASEZ is one institution that does not compromise when it comes to the competence of contractors, which is precisely why in every project that they’ve initiated, they were always far ahead of their milestones.” TASEZ is a unique project, with shareholders from each of the three tiers of government along with Ford Motor Company; the Department of Trade, Industry and Competition represents the national government, the Gauteng Department of Economic Development represents the province, and the City of Tshwane represents local government. Dr Moya, spoke about the City of Tshwane’s ambitious revitalisation strategy that is aiming for a 3.9% annual growth by 2029, targeting 80 000 new jobs. Key sectors include agri-parks, solar farms and automotive manufacturing. The City committed to retaining investments and improving infrastructure, such as energy and water security. “As the City, we need to not only make a pronouncement saying we are committed to economic growth … but must be seen in action,” Dr Moya said. Standing under an old concrete water reservoir on the top of the hill, the executive mayor spoke passionately about the issue of water security. “We can’t expect people to come and invest in our city if we do not provide the infrastructure that is required.” This new development is significant, not only to the City of Tshwane, but to its residents, she added. The most recent statistics indicate that unemployment in the City of Tshwane has increased to 38.4%. “Do you know what that means? On a day-to-day basis, there’s a family that doesn’t have food or guarantee of a plate of food because they don’t have a job opportunity. It means there’s a small, medium and micro enterprise (SMME) somewhere that is not surviving because the opportunities are less.” The efforts of the City of Tshwane, supported by business and investment is done with the ordinary residents in mind. “A student at college who has studied something to do with automotive, must know that there’s a future for them, because the City of Tshwane has an automotive centre here.” Dr Moya added: “We always appreciative of projects like this. Hence, we want to go the extra mile to make sure that they succeed, so that we can achieve our objectives and that the lives of our people are improved.” The executive mayor also spoke about the need for SMMEs to go beyond relying on tenders, but to be included in the whole value chain and become big businesses in their own right. Noting the presence of members of the community, including the TASEZ Community Project Committee which oversees the social compact between the local communities and the special economic zone, Dr Moya also spoke about the importance of community involvement in the success of the development. “If communities understand the benefit of this project, then communities start to protect the projects that they have.” The appointed contractor is one of the success stories of TASEZ: during Phase 1 of the development MES Major Projects was graded CE3 and today is a CE7. TASEZ CFO Rebecca Hlabatau outlined the significant work that MES would be undertaking; building a reinforced concrete reservoir that will hold 15 megalitres, standing 12m in height, 200 tons, and 2 500m³ in volume. The work is expected to be completed within 12 months.

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

Empowering youth to drive the future of automotive manufacturing

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By Dr Bheka Zulu: CEO of TASEZ Young people have the power to reshape South Africa’s automotive manufacturing sector; they are driven, they are innovative, and they are prepared to adapt – much like the young people who united against their circumstance in 1976. This 16 June, as we remember the bravery of the young generation who rose up against oppression and fought for their right to education and opportunity, their fight must continue – this time against poverty and barriers that block economic opportunities. Currently, South Africa faces a youth unemployment rate of 62.4% among individuals aged 15-24 years. Today, it is our responsibility to ensure that the promise of economic empowerment and industrial transformation reaches every young South African. Across the globe, industries are evolving, and automotive manufacturing is no exception. We are witnessing a profound shift, driven by technology, sustainability, and the growing need for innovation. Yet, the question we need to ask is who will lead this transformation? The power of the youth Young minds bring fresh perspectives, creative problem-solving, and a deep understanding of emerging technologies. With access to the right skills, opportunities, and platforms, they will be the pioneers of change, ensuring that South Africa remains competitive in the global automotive landscape. With the staggering unemployment figure, we must invest in skills development programmes that equip young people with advanced technical expertise, digital proficiency, and leadership abilities. These initiatives should align with global trends such as electric vehicle production, automation, and artificial intelligence in manufacturing. Through strategic partnerships between government, private industry, and educational institutions, we can create training programs that meet the demands of modern automotive production. Programs like apprenticeships, vocational training, and STEM education are not just investments in individuals; they are investments in the future of our economy. Small, medium, and micro enterprises While established corporations dominate the automotive sector, the backbone of any thriving economy lies in its small, medium, and micro enterprises (SMMEs). These businesses foster agility, creativity, and adaptability—traits essential for industry transformation. SMMEs contribute approximately 34% to South Africa’s GDP and employ over 60% of the workforce. By empowering young entrepreneurs with access to funding, mentorship, and market opportunities, we can ensure that innovation flourishes within the automotive sector. SMMEs are the lifeblood of the country’s economy, and they are central to TASEZ’s mission of inclusive growth. In Phase 1 of its development, TASEZ invested R1.7-billion in 229 SMMEs from communities like Mamelodi, Eersterust, and Nellmapius. This investment, representing 43% of TASEZ’s construction budget, exceeded the national target of 30%. Of this, 6.2% went to women-owned businesses, 18% to youth-owned businesses, and 2% to businesses owned by people with disabilities. These SMMEs supported 5 071 construction jobs, with 60% going to youth and 18% to women, and 3 311 permanent jobs, with 65.47% for youth and 32% for women. As TASEZ moves into Phase 2, it anticipates that a further R1.1-billion will be spent on SMMEs and over 6 000 jobs will be created. TASEZ and its youth initiatives The Tshwane Automotive Special Economic Zone (TASEZ) is committed to creating an ecosystem where young innovators and business owners can thrive. We are committed to harnessing the energy, creativity, and potential of young South Africans to revolutionise the automotive industry. The automotive manufacturing sector, which contributes 5.3% to South Africa’s GDP, faces challenges like global competition and technological disruption, yet it holds immense potential for growth. We recognise the importance of integrating SMMEs into the automotive supply chain. By ensuring that locally owned businesses have access to procurement contracts, technical training, and growth opportunities, we are not only strengthening our economy but also creating sustainable jobs for young people. The TASEZ Training Academy, established in 2024, works closely with training institutions, Sector Education Training Authorities (SETAs), and industry, TASEZ is working hard to enable emerging entrepreneurs to develop cutting-edge solutions that will define the future of mobility. Emerging entrepreneurs need support on multiple levels, access to markets and finance, skills development and mentorship in business, and industry networking opportunities and information. The TASEZ Training Academy tries to support young South Africans on all these levels. With the industry rapidly evolving and moving towards new energy vehicles, mechatronics, and robotics, the TASEZ Training Academy has prioritised skills development for the industry’s future. In 2024, the academy celebrated the training of 526 young people from local communities in safety, health, environment, and quality skills critical to the automotive value chain. Working with various SETAs, the TASEZ Academy has set aside funding for 40 engineering degrees, 20 master’s degrees, and 10 PhDs to cultivate local intellectual property and nurture black engineers. These efforts align with the National Development Plan’s goal of producing 30 000 artisans annually by 2030, ensuring our youth are equipped to lead in a digitised, green economy. New energy vehicles As the global automotive industry is shifting towards sustainability, and South Africa must keep pace. In 2023, electric vehicle sales in South Africa surged by nearly 83% compared to the previous year. This growth presents an opportunity for young professionals to lead the charge in new energy production, battery technology, and sustainable mobility solutions. By investing in skills training for new energy vehicle manufacturing and maintenance, we can ensure that South Africa remains competitive in the global automotive market. Building a new future To the youth of South Africa, the time is now to embrace technology, invest in skills, explore entrepreneurship, and become the architects of an automotive industry that is world-class, sustainable, and inclusive. To the industry leaders and decision-makers, the time is now to work together to ensure youth-led initiatives receive the support they need – the time is now to a sector that does not just produce vehicles but empowers communities and transforms lives.

‘Let’s strengthen South Africa’s SEZ model’

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South Africa’s Special Economic Zones are working – let’s strengthen the model, not abandon it, argues the CEO of the Tshwane Automotive Special Economic Zone, Dr Bheka Zulu. Special Economic Zones (SEZs) have become the latest ideological battleground in South Africa’s ongoing quest for inclusive growth, industrialisation, and sustainable job creation. In a recent article on News24, Ann Bernstein of the Centre for Development and Enterprise (CDE) called for the private sector to take over the management of these zones, arguing that government-led SEZs have failed to attract investment or deliver value. While her concerns about state capacity are not unfounded, this blanket assessment misses crucial successes and risks throwing away a powerful economic tool that is beginning to bear fruit, especially in the automotive sector. At the Tshwane Automotive Special Economic Zone (TASEZ) we are seeing a very different story from the one Bernstein outlines. TASEZ is the first hybrid model in demonstrating the power of the three-tier government partnership 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 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, based on a social compact, was spent on SMMEs in and around the City of Tshwane between 2021 and 2024. These are not promises or projections – they are real numbers backed by infrastructure, operating factories, and a thriving ecosystem of component suppliers. A key enabler of this success has been the decisive role of the state in creating the conditions for investment: building roads, ensuring bulk infrastructure, streamlining regulatory processes, and coordinating skills development through various initiatives. That said, Bernstein is right to push for more agile, results-driven management. The private sector’s role is not only welcome – it is essential particularly now that government is pushing for a policy discussion for private sector participation. But rather than handing over the reins entirely, we need to deepen the hybrid model that has proven effective in cases like TASEZ. Government’s role should focus on regulation, enabling infrastructure, and long-term industrial planning, while operators and investors bring in the operational efficiency, market access, and innovation that drive competitiveness. Indeed, the problem is not that SEZs are state-led, it’s that too many are state-led in theory but lack the kind of collaborative approach that aligns municipal, provincial, and national priorities. Where this coordination exists, as in TASEZ, we see tangible results. Where it doesn’t, frustration festers. The automotive sector, supported by the South African Automotive Masterplan (SAAM 2035), is uniquely positioned to demonstrate the value of SEZs. The sector is one of the country’s largest manufacturing contributors to GDP and exports, and it relies heavily on global value chains, just-in-time logistics, and infrastructure precision. An SEZ tailored to these requirements can be the difference between securing a global model’s production or losing it to another country. South Africa must continue to refine its SEZ policy, not abandon it. This includes tightening criteria for SEZ designation, strengthening management capacity, and measuring outcomes rigorously. But dismantling the model now, just as it starts to show success in strategic sectors, would be a mistake. Let’s learn from what works. At TASEZ, we welcome robust engagement, and we invite public and private stakeholders alike to visit, assess, and partner with us in shaping the next chapter of industrial development. The SEZ model, when done right, can be one of the most powerful tools in our developmental arsenal. This article was first published in News 24 Business: South Africa’s SEZs are working – let’s strengthen the model, not abandon it 18 June 2025  

TASEZ explores electric mobility and investment partnerships in China

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TASEZ CEO Dr Bheka Zulu and Business Development Executive Msokoli Ntombana reflect on their vital fact-finding visit to China, writes Mandla Mpangase. In a bid to deepen South Africa’s foothold in the global electric mobility revolution, a delegation from the Tshwane Automotive Special Economic Zone (TASEZ) embarked on a groundbreaking business and mobility study tour of China from 21 – 30 April 2025. The delegation, led by TASEZ Chief Executive Officer Dr Bheka Zulu and Business Development Executive Msokoli Ntombana, visited leading Chinese cities and innovation hubs to explore strategic investment, electric vehicle (EV) manufacturing opportunities, and clean energy technologies. Organised by the South Africa-China Transport and Technology Think Tank (SACTT), in partnership with Zhejiang Normal University and Valternative, the China mobility study tour took TASEZ to the heart of global electric vehicle production: from Shanghai’s smart cities to Shenzhen’s autonomous mobility ecosystems. “This mission was more than just a learning experience,” stated Dr Zulu. “It was a strategic positioning exercise. “As South Africa navigates the future of automotive manufacturing, China offers a blueprint for rapid, sustainable, and scalable industrialisation in electric mobility. We needed to be at the forefront of that conversation.” The tour provided unprecedented access to China’s booming electric mobility ecosystem. TASEZ’s engagements included visits to: The tour also featured a vital diplomatic engagement with the South African consulate general in Shanghai, which pledged facilitation of future investment efforts and participation in the upcoming China International Import Expo, scheduled for November 2025. “We are no longer in the age where TASEZ only chases internal combustion vehicle assembly,” explained Ntombana. “TASEZ is evolving into a future-focused industrial platform – one that is open to new energy technologies, battery innovation, and smart logistics. “This tour helped us connect the dots between Chinese capabilities and South African potential.” Accelerating South Africa’s new energy transition China’s meteoric rise as a global EV leader has disrupted traditional supply chains and redefined auto manufacturing. With brands like BYD, NIO, and SAIC exporting in growing volumes, the global centre of gravity in the automotive industry is clearly shifting east. South Africa, and particularly Gauteng – which accounts for over 40% of the country’s automotive output – must adapt quickly to remain competitive. The visit was aimed at positioning TASEZ as a gateway for Chinese investors looking to establish operations in Africa, with a focus on electric vehicle production, green energy components, and value-chain localisation. “One of the biggest takeaways was witnessing how Chinese companies localise technology and scale it rapidly,” said Dr Zulu. “We saw factories that were established within a year and are now producing thousands of electric units daily. South Africa has the human capital, we have the land, and we have strategic trade links. What we need now is the technology and investment, and China is a willing partner.” From Shanghai to Shenzhen – a panoramic view of China’s EV future The journey started in Shanghai, where the delegation engaged with the Consul General and visited the Lingang Special Area, a free trade zone renowned for housing Tesla’s Gigafactory and other advanced manufacturing operations. Here, TASEZ drew inspiration on how spatial planning and industrial policy can be aligned for EV growth. From Qingdao, where MESNAC and Sailun operate, to Xiamen and Shenzhen, home to battery innovators and autonomous vehicle manufacturers, each city offered insights into supply chain agility, automation, and EV infrastructure. “What struck us most was how integrated China’s innovation ecosystem is,” Ntombana said. “Their universities, government policy, manufacturers, and even property developers work in sync to build mobility cities. This is exactly the model South Africa needs to replicate, especially around the TASEZ hub in Tshwane.” The TASEZ team has committed to a series of post-tour engagements, including exploring partnerships with key players in the automotive sector. “We cannot let momentum fade,” added Dr Zulu. “Each conversation we had must be turned into a formal business case, each handshake into a partnership proposal. The goal is simple – make TASEZ the African home for clean automotive innovation.” This is no longer just about TASEZ. “It’s about how South Africa positions itself in the race for the green economy. The Chinese have moved – fast. Now it’s our turn to catch up.”

TASEZ focuses on developing small enterprises for future growth

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By Mandla Mpangase The 2025 Tshwane SMME Symposium explored the best ways to prepare small businesses for the industries of the future. It is important to prepare now so that small, medium and micro enterprises (SMMEs) will be in a position to lead both the country and the continent in the green economy, in technology, and in automotive manufacturing. The symposium, held on 6 May 2025 at the Innovation Hub, was hosted by the Tshwane Economic Development Agency along with the South African Electrotechnical Export Council and the Innovation Hub. The Tshwane Automotive Special Economic Zone (TASEZ) featured in a panel discussion on the road map for South African SMMEs to participate in future economies, with a particular focus on the automotive sector, digital technology and the energy sector. TASEZ CEO Dr Bheka Zulu spoke of the importance of understanding the impact SMMEs made in their sector, rather than simply looking at the numbers. “We need to know how we change lives, what are the SMMEs taking home?” He noted that TASEZ had ring-fenced R1.7-billion for SMMEs during the special economic zone’s Phase 1 development. Dr Zulu also addressed the issue of the skills gap within the automotive sector. TASEZ is now working closely with a number of partners to make sure the gap is closed. Technology can be a vital way to help the informal sector to grow. Another aspect was that SMMEs needed to be supported with research and development, Dr Zulu noted. He referred to a Chinese company, BYD, that has only been going for a decade. “They started as a battery manufacturer, but they evolved as the economic environment changed and now build cars. Last year they manufactured five million vehicles.” South Africa’s SMMEs must be strong enough to follow the same trajectory. It is vital to make sure that all role players understand the needs of the SMMEs and that SMMEs understand the requirements of industry. “Partnerships are important so that everyone understands the needs, requirements, constraints and challenges.” Partnering with established companies and organisations also makes access to markets much easier for SMMEs, who then have a champion lobbying on their behalf with the larger role players, Dr Zulu said. A key focus for TASEZ as it rolls out its Phase 2 development, is its support for black industrialists. The SMME symposium involved local SMMEs, representatives from a number of government agencies, potential funders, and industry partners, who all joined forces come up with concrete strategies to integrate township small businesses into mainstream supply chains and future-focused sectors. The Executive Mayor of the City of Tshwane, Dr Nasiphi Moya, summed up the importance of SMMEs to the job creation and innovation: “These enterprises are the lifeblood of our economy, the backbone of local employment, and the heartbeat of township revitalisation.” The symposium focused on how all the economic sector players can support, strengthen, and boost local SMMEs.

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.”