Tasez

Menu
Facebook Linkedin Instagram

Lionel October

TASEZ Training Academy lauds new graduates

News / By

With the manufacturing sector in constant change as the Fourth Industrial Revolution takes hold, the Tshwane Automotive Special Economic Zone, through its’ training academy, is making sure that workers are equipped for this future. The TASEZ Training Academy celebrated the graduation of 163 learners, presenting them with certificates of achievement on Thursday, 15 August 2024. With the graduates demonstrating exceptional dedication and skill in their training, the event was seen as an opportunity to recognise the learners’ hard work and commitment. The celebration showed the special economic zone’s commitment to providing much-needed skills development in a rapidly changing automotive industry. “Now is the time to lead a skills revolution in this country,” says chairperson, Lionel October TASEZ, adding that the TASEZ’s academy was set up to close the skills and technology gap. “As articulated in the South African Automotive Master Plan, the industry needs to be expanded, becoming more inclusive,” says CEO, Dr Bheka Zulu, adding that “a skilled, agile and adaptable workforce is essential to achieve this.” TASEZ, Africa’s first automotive city, is ideally placed to make an impact on inclusive jobs creation and upskilling. “TASEZ is delivering on its vision to be the benchmark for special economic zones in South Africa while contributing to the growth of the automotive sector,” says Dr Zulu. As the automotive industry is gearing up for production of new energy vehicles and for exports to markets that have set targets to reach a carbon neutral environment, South African manufacturers will need to move swiftly to embrace Fourth Industrial Revolution skills. It is against this backdrop that the Automotive Master Plan has set a number of ambitious targets to be met by 2035, including: The automotive industry is one of South Africa’s most important economic sectors, contributing 4.3% to the country’s gross domestic product. The industry is also the country’s fifth largest export sector accounting 18.1% of total exports. However, the sector – as the country – faces the intense challenge of unemployment alongside an unskilled labour force. Figures are disheartening, with Q2 numbers indicating the highest unemployment rate since 2022. Currently South Africa’s official unemployment rate stands at 33.5.9% for the second quarter of 2024, up from 32.9% for the first quarter of 2024, according to StatsSA. The expanded unemployment rate, which includes those who are no longer actively looking for employment, increased to 42.6%, up from the first quarter figure of 41.9%. These numbers represent the 8.4 million people who are now unemployed, with more than 76% of those having been without a job for more than a year. A focus on skills development and training has never been so important, notes Dr Zulu. “Skills development has the potential to turn the tide against unemployment,” he adds.

TASEZ greets new Gauteng MEC, views operations

News / By

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.

Tshwane SEZ shows the way on how to successfully attract investment and create employment

News / By

The Tshwane Automotive Special Economic Zone (TASEZ) has set the benchmark for the development of South Africa’s new special economic zones. Special economic zones (SEZs) are key 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. Africa’s first automotive city, based in the City of Tshwane, was an exemplary case in how to develop and set up an SEZ to hit the road running. From being gazette in January 2020 to seeing the first cars come off the production line in November 2022, TASEZ achieved all of this in just two short years – and during the Covid 19 pandemic. The TASEZ case study was central to discussions that took place in a workshop held in Pretoria on Thursday, 11 April 2024, that looked at how SEZs can be implemented speedily. Piloting a new method “We are conscious of the responsibility we have been given in piloting this new model for the development of SEZs,” says TASEZ CEO Dr Bheka Zulu. “It could not have been done without the strong strategic partnerships between our investors and all three tiers of government.” The TASEZ model has now set the benchmark for the establishment of new SEZs. Representatives from the country’s new SEZs joined the teams from the Department of Trade, Industry and Competition (the dtic) responsible for SEZ development, the Industrial Development Corporation’s (IDC’s) SEZ unit, and TASEZ. TASEZ chair and executive director of the Industrial Zones Programme at the IDC, Lionel October, said: “We are here today to begin to standardise and formulate SEZ set up procedures.” The dtic’s Shaun Moses set the scene for the discussion, outlining the policy and strategies driving the development of SEZs. He highlighted the underlying economic challenges South Africa had to tackle: This led to the government identifying a number of objectives to change the economic landscape: combining growth with transformation; boosting local production; growing exports and expanding trade within Africa; increasing investment; establishing a reliable and low-cost energy system while greening the economy; and growing employment. This, Moses pointed out, would be achieved through promoting jobs and higher incomes via industrialisation; building an inclusive economy; and making sure public policies make an impact. Factors for success It was against this background that TASEZ became the pilot project for a new approach to setting up SEZs. There were a number of critical factors that ensured the project’s success: “The scale of the TASEZ project demanded a well-coordinated, systematic and objective approach in responding to the socio-economic performance targets, job creation and SMME opportunities.” Crucially, it was the agile project management approach that ensured TASEZ’s success. Key factors to this success were: One of the proposals to speed up the development of new SEZs, put forward by the technical advisor of the Industrial Zones Programme at the IDC, Dr Siyabonga Simayi, was the creation of multi-sites, or the extension of the boundaries of existing SEZs, to incorporate the development of new SEZs. This would see the development of a zone with more than one site, or the development on land that did not share a border with the existing SEZ. The licence of an existing Industrial Development Zone could be used to facilitate the creation of new SEZs, cutting down on read tape and allowing for a speedier and more agile process, Dr Simayi told the workshop. This would see a single licensee, operator and entity, with one management team and board; single operating systems and processes, and a single budget with one audit process. The workshop concluded by agreeing that there was a need to develop clear guidelines and operating procedures to implement successful SEZs within two years. As Stieneke Jensma, the chief operations officer of the Industrial Zones Programme at the IDC, noted in summing up the day: “TASEZ has done it – we know it’s doable.”

TASEZ, a case study in successful partnerships

News / By

Integrated strategic partnerships are crucial in creating an enabling environment for potential investors; and the Tshwane Automotive Special Economic Zone (TASEZ) is a great example of this process. In a high-level exploratory meeting held at TASEZ on 14 March 2024, representatives from TASEZ, the United Nations Alliance for Sustainable Development Goals (UnASDG) Intergovernmental Organisation, South Africa’s National Planning Commission, and international businesses discussed the possibility of developing strategic partnerships, with the focus being on utilising TASEZ for this purpose. Central to the introductory discussions was how TASEZ had managed to establish Africa’s first automotive city in record time, all through the strong partnerships between the original equipment manufacturer (OEM) – Ford Motor Company of Southern Africa – and the three tiers of government. TASEZ chairperson Lionel October explained to the visitors how the special economic zone (SEZ) had completed the first phase of development in a mere 18 months – and during Covid-19; utilising a R24-billion investment in setting up an automotive manufacturing zone that has 12 fully operational facilities and employs 3 500 people. “This was a pilot project of a new integrated strategic partnership to be used by SEZs in South Africa,” October explained. It is a three-tier partnership between national government that focuses on the high-level structure, provincial government that provides funding for the infrastructure within the zone, and local government that provides infrastructure such as roads and electricity into the zone. Globally, successful SEZs, in China, Japan, and South Korea, for example, focused on modern, new industries and were based on entire cities, October noted. “South Africa, however, took a different approach, focusing on reindustrialisation in under-developed areas.” Under the leadership of CEO Dr Bheka Zulu, TASEZ unlocked the potential available in strategic relationships, opening an investor-friendly hub for OEMS and the manufacturers of automotive components. In addition, it laid the framework to engage with local communities, creating job opportunities for local small, micro and medium enterprises (SMMEs) and workers. Phase 1, for example, saw R1.7-billion spent on SMME procurement. This was done with TASEZ playing a significant role in answering the United Nation’s call to implement the Sustainable Development Goals (SDGs). TASEZ’s operations answer a number of the SDGs, particularly Goal 1 to end poverty, Goal 8 to provide decent work and economic growth, Goal 9 to build resilient infrastructure using innovative technology, and Goal 12 to ensure sustainable production patterns. During phase 1 TASEZ ensured that local community members were provided with economic opportunities; construction embraced green sustainable building materials and methods; and innovative technologies, including high-speed internet and green energy solutions, were made available to potential investors. TASEZ is now preparing to roll out phase 2 of the project – a mixed-use development, which will include incubator programmes to create opportunities for new, emerging suppliers for the automotive component manufacturing sector. Responding to the information shared by TASEZ, UnASDG ambassador Deacon Mathe described how the alliance was focused on making sure the UN’s SDGs became a reality in South Africa. The alliance focuses on monitoring, providing an analysis, funding, and support to members from all the countries represented in the UN. After the discussions, the group toured the facilities in TASEZ’s phase 1.   

TASEZ recognised at the Transport Evolution Africa Awards

2023 – a successful year for TASEZ

News / By

From the launch of an initiative supporting women development to signing a partnership agreement with local communities to hosting interested investors from BRICS countries, the Tshwane Automotive Special Economic Zone is helping change South Africa’s economic landscape. TASEZ has a vision to be the benchmark for special economic zones (SEZs) in the country, contributing to the growth of the automotive sector by being a major creator of new businesses and contributing to employment, transformation, and socio-economic development. It is a big ask for any organisation, particularly one that is three years old. Celebrating women leadership This year has been a particularly busy one for the SEZ. One significant event was the launch in September of the Women of the SEZs, an initiative to empower women, champion diversity, foster inclusivity and celebrate achievements of women in all spheres of the SEZ space. As TASEZ board member Susan Mangole noted, the event aimed to “inspire and build women”, serving as a testament to the unyielding determination of women who continue to steer the course of progress, innovation, and collaboration within the SEZs and beyond. Encouraging investment TASEZ also held its own on the international stage, hosting delegates to the 15th annual BRICS Summit held in Johannesburg in August. BRICS, made up of Brazil, Russia, India, China and South Africa, incorporates more than 40% of the global population and accounts for over 25% of the world’s economy. A number of investors from Brazil, Russia, India and China toured the TASEZ Silverton facilities to find out for themselves what Africa’s First Automotive City has to offer. The SEZ provides world-class production facilities, steers investors towards tax incentives and helps source well-trained workers. At the end of the tour the deputy chair of the BRICS Manufacturing Working Group, Lesetja Mogaba said TASEZ had showed the delegates just how to link industrial development to local community needs. “This is a class act,” he added. International and local relations Egyptian Prime Minister Mostafa Kamal Madbouly visited the Ford Frame plant at TASEZ in August 2023. In addition, TASEZ played host to several other African partners from Uganda and Zimbabwe, who wanted to learn firsthand how TASEZ had managed to grow from a vacant lot into a well-established manufacturing hub in two short years. Questions were asked on how TASEZ is run, what incentives are provided to investors, and what lessons were learnt in the process. Equally critical to the success of TASEZ is its partnerships with the local communities, and to this end the organisation signed a memorandum of understanding with the Community Project Committee (CPC) in February 2023. The document outlined the formal ties between TASEZ and the surrounding communities of Mamelodi, Eesterust and Nellmapius. TASEZ and the CPC are committed to working together to create job opportunities while at the same time building an inclusive automotive industry. Good governance Good governance sits at the heart of all TASEZ’s business efforts, and August saw the company receive a clean audit from the Office of the Auditor-General. This was the third year in a row that the company received such a result. Board chair Lionel October noted TASEZ’s “unwavering commitment to transparency, accountability, and excellence”. The clean audit reaffirmed TASEZ’s commitment to prudent financial management, effective controls, and ethical practices, he added. management, effective controls, and ethical practices, he added. Awards for industry excellence September saw TASEZ CEO Dr Bheka Zulu recognised at the Transport Evolution Africa Awards for his “inclusive leadership”. The awards, which acknowledge “the achievements of transport trailblazers in making an impact locally, nationally and continentally”, formed part of a three-day gathering of decision-makers, businesses and organisations involved in the transport sector. In addition, TASEZ sponsored a special lounge at Transport Evolution Africa to showcase the offerings of South Africa’s SEZs and encourage investors to talk business with the SEZs represented. The year ended on an exciting note, with TASEZ receiving another award: this time the Council for the Built Environment and the Construction Education Training Authority honoured the SEZ as a state-owned entity that implemented infrastructure projects timeously at their inaugural Built Environment Recognition Awards held on 7 December 2023 under the theme “Road to Professional Registration”. The award recognised the efforts TASEZ made to establish and develop Phase 1 of the SEZ in the midst of the Covid-19 pandemic. A new year is just around the corner and will bring a new phase of development to TASEZ, as it begins work on Phase 2.

TASEZ factory

TASEZ recognised as an ‘exemplary project’

News / By

The Tshwane Automotive Special Economic Zone’s efforts to grow and transform South Africa’s manufacturing sector has been acknowledged by two significant role players in the built environment space. TASEZ was honoured as a state-owned entity that implemented infrastructure projects timeously at the inaugural Built Environment Recognition Awards held in Durban on Thursday, 7 December 2023 under the theme “Road to Professional Registration”. The award, hosted by the Council for the Built Environment and the Construction Education Training Authority, recognised the efforts TASEZ made to establish and develop the special economic zone in the midst of the Covid-19 pandemic. From the sod-turning ceremony overseen by President Cyril Ramaphosa on 5 November 2019 to the start of production on Ford’s Next-Generation Rangers on 15 November 2022, TASEZ has been a case study for infrastructure development in South Africa. “The awards recognise outstanding achievements in engineering, architecture, urban planning, construction, and related fields,” the CEO of the Council for the Built Environment Dr Msizi Myeza explained. “They promote innovative and sustainable practices in the built environment sector while showcasing exemplary projects and individuals as role models for future initiatives.” In expressing his delight at the accolade, TASEZ chair Lionel October said: “We are determined to make sure TASEZ delivers on its mission to be a catalyst for employment, transformation, socio-economic development and industry growth.” The secret to establishing a successful SEZ was to have a strong executive management team in place, October added. Based in the automotive hub of the City of Tshwane, TASEZ, Africa’s first automotive city, aims to attract automotive manufacturers and suppliers, providing a world-class hub with bespoke facilities and services. TASEZ sees itself as “shaping the future of automotive excellence” as it helps the South African automotive industry on its path to transform the sector by attracting investments; and becoming more inclusive and more sustainable.

TASEZ features on Power FM business programme

News / By

The secret to the success of the Tshwane Automotive Special Economic Zone lies in its partnerships, says board chairperson Lionel October. He was speaking to Power FM’s Noluthando Mthonti-Mlambo during the business focus on 25 October 2023. TASEZ is based on partnerships between SEZ and the communities of Mamelodi and Eersterust, the Ford Motor Company of Southern Africa and its international component manufacturers that come from Thailand, Portugal, Brazil, as well as South Africa, and government. “If the three partners work together the community gets real benefits – [jobs and skills development], government provides the world-class infrastructure required, and the private sector creates the jobs and brings the technology, creating our export platforms that is the secret to success,” October said. TASEZ is one of 10 SEZs set up in South Africa to help grow the South African economy. SEZs are geographically designated areas set aside for distinct economic activities and are supported by special arrangements and systems that are often different from those that apply in the rest of the country. They are seen as engines that can propel government’s strategic objectives of industrialisation, regional development, and employment creation forward through attracting Foreign Direct Investment and exporting value-added commodities. Looking at the impact of TASEZ on the South African economy, October pointed out that it is a relative newcomer to the SEZ space, being built in record time, in two years and during Covid-19. This was thanks to strong leadership from the president, the Minister of Trade, Industry and Competition and the provincial and local governments, October said. In addition, Ford invested R16-billion into expanding their plant in South Africa. “They are now producing the new Ford Ranger vehicle in one of the biggest plants in their stable, exporting to over 100 countries.” Ford’s investment has seen the creation of highly skilled jobs – 2 000 created by Ford and 3 200 created by TASEZ. “This development has really been beneficial to the local economy.” Considering how South Africa’s SEZs measure up globally, October looked to China and the Asian Tigers, pointing out that their success can be attributed to SEZs. “While they obviously provide tax incentives and import incentives, but the real winning proposition that we see from China is power, land and logistics.” It is important to provide a proper logistics system, rail and road; to provide regular and consistent electricity; and to provide a well-developed zone in which to base the manufacturing businesses. In the case of TASEZ, the partnership with the City of Tshwane ensures consistent power to the zone, October said. “We’re working on a railway link between Tshwane and Gqeberha to use Port Elizabeth as an export port.” Added to this is the world-class infrastructure provided within the TASEZ hub.

The chairman of the board of TASEZ visits the hub

TASEZ gets clean audit for third year in a row

News / By

TASEZ chairman of the board Lionel October has congratulated the entity on its sterling performance in receiving a clean audit from the Office of the Auditor-General. The Tshwane Automotive Special Economic Zone (TASEZ) is proud to announce it has received a clean audit for its 2022/23 financial report. This is the third consecutive year the entity has received such a finding from the Office of the Auditor-General. “It is with immense pride and gratitude that I announce a momentous achievement that reflects our unwavering commitment to transparency, accountability, and excellence,” said board chair Lionel October. “This clean audit reaffirms our commitment to prudent financial management, effective controls, and ethical practices.” The clean audit means that TASEZ produced financial statements that are free from material misstatements and have no material findings on reporting on performance objectives or non-compliance with legislation. “It reinforces our position as a reliable SEZ for local and international investors, assuring them that their investments are managed with the utmost integrity and diligence. Our ability to consistently uphold the principles of transparency and accountability is a cornerstone of TASEZ’s reputation as a world-class hub for automotive investments,” October added. TASEZ, known as Africa’s first automotive city, provides an SEZ that offers a range of financial incentives and high-level support services to investors. Its mandate is to accelerate economic reform through attracting investment and creating jobs and opening up opportunities for small, medium and micro enterprises – and ultimately transforming the automotive sector.

Business leaders from the BRICS nations visit the TASEZ plant in Silverton

TASEZ talks investment opportunities to BRICS businesses

News / By

In the week prior to the 15th annual BRICS summit due to take place in South Africa from 22 – 24 August 2023 under the watchful eye of chairperson President Cyril Ramaphosa, the Tshwane Automotive Special Economic Zone (TASEZ) played host to a delegation of business leaders from Brazil, Russia, India and China. A high-level group of business leaders from the BRICS nations are in South Africa to explore investment opportunities across a wide range of economic sectors, including the automotive manufacturing sector. The group visited the TASEZ plant in Silverton on Monday, 14 August 2023 and was warmly welcomed by a large TASEZ team, headed up by board chair Lionel October and CEO Dr Bheka Zulu, eager to talk business opportunities and investment incentives. “We want to showcase our special economic zone to big investors who want to take up occupancy in our hub,” October said. Tshwane is uniquely placed as an automotive hub, with Ford based in the TASEZ plant and BMW and Nissan in the nearby industrial area. October sees the city becoming the gateway to Africa for the automotive sector. With Phase 1 of the TASEZ development complete and fully occupied by anchor tenant Ford and nine manufacturers producing components required for the Ford Ranger, the TASEZ team are now looking to implementing the development plans for Phase 2 and 3. “We are looking for two or three other global companies to take up the incentives available in the zone, along with the infrastructure and support TASEZ supplies,” October said. “We are excited to be hosting businesses from some of the largest countries in the world,” Dr Zulu said. “This is an important milestone for us, to engage with world business leaders and share with them our plans.” The BRICS group incorporates more than 40% of the global population and over 25% of the world’s economy. With this in mind, it is critical for South Africa’s economic and social growth and development to encourage foreign direct investment into the various sectors. “We do not see our SEZ in isolation, there are numerous linkages that will expand the reach of what happens in our hub,” Dr Zulu noted.