Lebogang Maile Archives

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

Special economic zones (SEZs) are ideally placed to help accelerate the country’s much-needed industrialisation, securing foreign direct investment that can be used to create jobs, develop infrastructure and boost local economies. Africa’s first automotive city, the Tshwane Automotive Special Economic Zone, is one of these key drivers. SEZs are viewed as key instruments to making South Africa an attractive option for foreign direct investments. SEZs are important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation. Tuesday, 16 July 2024 saw the Gauteng MEC for economic development and treasury, Lebogang Maile, visit three of the 12 factories currently based in the SEZ – Ford Frame, Feltex, and Sodecia – to see for himself what the zone provides. TASEZ was established through a committed investment and against a very tight deadline – and during Covid 19 – setting the bar for the development of new SEZs in South Africa. From its beginnings in the dusty veld on the outskirts of Silverton in 2020, to seeing the first cars come off the production line in November 2022, TASEZ has shown just what can be achieved with a solid investor and strong leadership from all three tiers of government. Looking to expand, Ford Motor Company of Southern Africa committed to a R16-billion investment to produce an extra 40 000 vehicles a year, moving from 160 000 units to 200 000 units annually. Supporting Ford’s investment was the political will to drive the project and ensure its success. All three tiers of government become equal shareholders, each with clearly defined roles. The factories based in the SEZ all produce components for Ford, with a focus on just-in-time and just-in-sequence systems. The first phase of TASEZ’s development saw the creation of 3 244 permanent jobs within the zone, with more than 65% from the surrounding communities: 32% going to women and 65.4% by the youth. In addition, more than 5 071 construction jobs were created. “This is in line with the department’s objective of strengthening access into the economy for marginal communities,” Maile noted. “This brings the total of direct jobs created through SEZ to over 8 000 direct jobs resulting in more than 18 396 indirect jobs.” TASEZ CEO Dr Bheka Zulu said: “We are aware of the important role SEZs play in helping to accelerate reindustrialisation of our economic hubs.” He added: “TASEZ is well-placed to help create jobs, support our local communities and boost their economies, and share knowledge and skills.” TASEZ’s Phase 1 also saw 256 opportunities ring-fenced for small, medium and micro enterprises, totalling R1.7-billion in procurement spend. The SEZ is now focusing on its Phase 2 development, and embracing the challenges the South African automotive manufacturing sector faces, in growing the sector, creating jobs, providing access to skills development, ensuring materials and jobs are localised, and including the requirements need for the era of new energy vehicles (NEVs). Over the next two years, Ford will be investing an additional R5.2-billion for the production of the first-ever Ranger plug-in hybrid electric vehicle (PHEV).

TASEZ greets new Gauteng MEC, views operations

News / By Jenny Tennant

Gauteng’s newly-appointed member of the provincial executive council (MEC) for economic development and treasury, Lebogang Maile made time to the meet the Tshwane Automotive Special Economic Zone’s (TASEZ) executive team and familiarise himself with the special economic zone’s operations. Close relationships with strategic partners is vital to the SEZ, with the Gauteng government being one of the three government partners in TASEZ. As TASEZ chairperson Lionel October explained: “The establishment of Africa’s first automotive city was a pilot project of new integrated strategic partnerships to be used by SEZs in South Africa.” Central to its development is the three-tier partnership between national government that focuses on the high-level structure, the provincial government that provides funding for the infrastructure within the zone, and the local government that provides infrastructure such as roads and electricity into the zone. This catalysed the financial investment put into the project by the Ford Motor Company of Southern Africa as part of its plans to double the production of its vehicles in Silverton, City of Tshwane, by 40 000 units, to 200 000 units annually. The SEZ completed the first phase of its development in a mere 18 months – and during Covid-19 – using a R24-billion investment in setting up an automotive manufacturing zone that currently has 12 fully operational facilities and employs 3 500 people. MEC Maile, who met the TASEZ team, including CEO Dr Bheka Zulu and CFO Rebecca Hlabatau, on Friday 12 July 2024, is immersing himself in his extensive and economically critical portfolio. The Gauteng Department of Economic Development is tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng city region. And SEZs, as important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation, have an important role to play – they are key to making South Africa an attractive option for foreign direct investments. “Our special economic zones programme, supported by intensive investment promotion, will be utilised to accelerate the re-industrialisation of the Gauteng city region,” Maile said.