President Cyril Ramaphosa Archives

A key lesson from the 2025 G20 Summit: Industrialisation must power SA’s economic growth

As South Africa concludes its historic G20 Presidency, the first to be hosted on African soil, a clear message has emerged: the world is ready to recognise Africa as a central engine of shared prosperity, writes the Chairperson of the Tshwane Automotive Special Economic Zone, Maoto Molefane. We must make the most of the momentum. On the weekend of 22 and 23 November 2025, the G20 heads of states gathered in Johannesburg to endorse commitments that speak directly to the continent’s long-standing aspirations: equitable development, sustainable industrialisation, resilient economies, and fair participation in global trade. For South Africa, and for advanced industrial platforms like the Tshwane Automotive Special Economic Zone (TASEZ), this moment is far more than just a diplomatic symbolism, it is about the acceleration of economic growth to combat poverty and inequality, with industrialisation serving as a key driver of inclusive growth, job creation, and global competitiveness. The G20 2025 mandate President Cyril Ramaphosa’s closing message from the G20 Summit underscored the stakes. South Africa’s development needs – jobs for young people, robust infrastructure, energy security, thriving export industries – require global stability, inclusive growth and a level playing field. The G20 outcomes align directly with South Africa’s industrial ambitions: A new global approach to critical minerals ensures that mineral-rich countries like South Africa benefit from beneficiation at home – a key component of the localisation drive of the South African Automotive Masterplan 2035. Commitments to climate finance strengthen the foundation for a just energy transition that protects workers, communities, and industrial capacity – ensuring that South Africa becomes a sustainable and resilient country based on a green economy. Debt relief discussions aimed at freeing the liquidity of developing nations, thus enabling them to invest in critical infrastructure, skills development programmes and innovation – all of which are essential inputs of industrial expansion. Support for disaster-resilient economies, safeguarding industrial zones and supply chains from climate-related shocks. These are not abstract policy wins. They reshape the environment in which industrial zones like TASEZ operate: they unlock space for growth that is sustainable, technologically advanced and globally aligned. As President Ramaphosa said: “Together, we must accelerate progress towards the 2030 Sustainable Development Goals and the Pact for the Future. We have laid the foundation of solidarity. Now we must build the walls of justice and the roof of prosperity.” Industrialisation as an engine for growth Given that the 2025 G20 provided a strong voice for Africa, it must be noted that the continent has anchored the world’s supply chains for far too long without capturing its share of industrial value. “The greatest opportunity for prosperity in the 21st century lies in Africa,” President Ramaphosa said in his closing remarks. He described the continent as a driving force for future growth, innovation, mineral beneficiation, climate resilience and energy transition. The 2025 G20 Declaration calls for structural reforms, investment mobilisation, and digital transformation that place industrialisation at the heart of global development priorities. What this means for South Africa is that the country must build, manufacture, innovate, export, and compete. This is the work TASEZ – Africa’s first automotive city – was created to do. Based in the country’s capital city, TASEZ is demonstrating what coordinated industrial policy can achieve: World-class manufacturing platforms supporting global automotive brands and their suppliers; Localisation programmes that deepen South Africa’s manufacturing base and stimulate small business participation; Green industrial infrastructure that positions the zone for the new energy and electric vehicle and hydrogen and solar economies; and Skills programmes that equip young people for advanced manufacturing and digital production. TASEZ is not just an industrial hub, it is a catalyst for economic resilience and can serve as a model for the equitable, future-oriented development highlighted in the G20 Declaration. Beneficiation is a must The global commitment to fair critical mineral development provides South Africa with a generational opportunity: to build integrated value chains centred on electric vehicles, battery manufacturing, renewable energy components and advanced materials. As the President noted, minerals must become “a source of prosperity and sustainable development in the countries that produce them”. This aligns perfectly with South Africa’s automotive transition strategy and TASEZ’s expansion into green manufacturing, downstream processing and high-value production clusters. The President called the 2025 summit the People’s G20, characterised by the engagement of business, labour, youth, scientists, mayors and civil society. This spirit of collaboration is the very essence of effective industrialisation and special economic zones implementation/development, both of which rely on coordinated action between government, investors, communities and workers. South Africa’s G20 success, combined with improving economic indicators and growing confidence in our reform programme, demonstrates that the country is ready for a new industrial chapter based not on extractive development, but a shared value, skills development, innovation, and sustainable manufacturing. Looking ahead As global leaders return home, the world’s attention shifts from diplomacy to delivery. For TASEZ, the task is to translate the political momentum of the G20 into practical industrial capacity. The Johannesburg G20 summit marks a critical turning point for global industrialisation, especially for Africa. The commitments around infrastructure, climate transition, and inclusive development resonate deeply with our vision to build a sustainable, high-tech automotive hub that benefits local communities, talents, and small industrial players. However, for this to be more than rhetoric, the world must translate pledges into concrete investment, local value-chain development, and support for medium, small, and micro enterprises. The timing could not be better, as TASEZ ratchets up its Phase 2 developments. TASEZ will be focused on: Attracting green manufacturing investments; Accelerating automotive and component localisation; Supporting small business entry into advanced value chains; Building human capital for future industries; Expanding export-ready industrial infrastructure; and Driving the beneficiation of minerals linked to electric vehicle and battery manufacturing. The G20 Summit has shown the world what South Africa can achieve when united by purpose. As President Ramaphosa said: “Let us move forward together, demonstrating to the world that we have the capacity to confront and overcome the world’s challenges. Through partnerships

A key lesson from the 2025 G20 Summit: Industrialisation must power SA’s economic growth Read More »

Thank you to the people of South Africa for a historic G20 Presidency

News / Jenny Tennant

“We have placed Africa’s growth and development at the heart of the G20’s agenda,” writes South Africa’s president Cyril Ramaphosa in his latest weekly newsletter published on 24 November 2025 – the day after the closing of the 2025 G20 Leaders’s Summit. Over the past two days (22 and 23 November 2025), our country hosted leaders from around the world for the G20 Leaders’ Summit in Johannesburg. This is the first time that the G20 has been hosted on African soil. Recognising the importance of this milestone, we have placed Africa’s growth and development at the heart of the G20’s agenda. The G20 matters for South Africa not only to cement our important role in international affairs, but also to support our own growth and create jobs for South Africans. We can only achieve these objectives in an environment of global stability, inclusive growth and a level playing field. Leading up to the G20 Leaders’ Summit, we hosted tens of thousands of delegates for more than 130 meetings in every part of our country, from Gqeberha to George, Cape Town to eThekwini, Hoedpsruit to Polokwane. We welcomed visitors from around the world to see and enjoy the beauty of our natural landscapes, the warmth of our people’s hospitality and the sophistication of our economy. Our G20 Presidency has been rooted in the conviction that the world needs more solidarity, equality and sustainability. While some have sought to create division and polarisation between nations, we have reinforced our shared humanity. We have fostered collaboration and goodwill. Above all, we have affirmed that our shared goals outweigh our differences. We have prioritised issues that are important for advancing more rapid and inclusive growth in our own country. We reached agreements that will benefit every South African. We secured a clear commitment from the international community to address the high levels of debt which divert spending by developing economies – including our own – on infrastructure, health and education. We placed this issue firmly on the agenda to increase investment on the continent and seize the unique opportunity that Africa presents. The G20 leaders agreed on the need for increased global investment for climate action. This will be crucial for South Africa as we undertake a just energy transition to a low carbon economy in a manner that protects workers, businesses and communities. As the G20, we have agreed on the need for scaled up disaster prevention and post-disaster reconstruction to address the rising impact of extreme heat, floods, droughts and wildfires. We raised this issue because a few areas in our country, particularly the Eastern Cape and KwaZulu-Natal, frequently experience disasters. We have secured international agreement on a new approach to critical minerals so that they become a source of prosperity and sustainable development in the countries that produce them. This supports our own ambition to use our extensive endowment of minerals to become a leading global player, while ensuring that beneficiation takes place in South Africa and creates jobs in mining areas. This has been the People’s G20. It has given new prominence to engagement groups from across global society, bringing together sectors like business, labour, parliaments, scientists, think tanks, women, young people, start-ups, civil society, mayors and the media. We can be proud of what South Africa has achieved in hosting a successful G20 Presidency and guiding countries towards agreement on complex and important issues. This has been the historic effort to which all South Africans have contributed. We thank the many people who welcomed visitors to our country, and the security services who ensured that the G20 Leaders’ Summit and all G20 events took place without incident. We thank all the members of different social sectors who participated in the engagement groups and in other G20 activities throughout the year. We thank our Premiers and Mayors for having been such welcoming hosts. We thank our Ministers and Deputy Ministers, G20 Sherpas and government officials who guided the deliberations with wisdom and purpose. Above all, we thank each and every South African for contributing to this success, and for showing the world the strength of our values, the generosity of our people and the power of what we can achieve when we work together. Many of the foreign leaders and delegates who came to our country recognised what our Ubuntu spirit is all about. The success of the G20 Leader’s Summit, together with the improving performance of our economy and growing confidence in our reform programme, shows that South Africa is a country on the rise.

Thank you to the people of South Africa for a historic G20 Presidency Read More »

How South Africa’s G20 Presidency can accelerate industrial growth through TASEZ

News, Thought leaders / Jenny Tennant

When South Africa welcomes the world to the G20 Leaders’ Summit this month, our nation will experience one of the most profound moments of global visibility since the country’s dawn of democracy, writes the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu. As heads of state, global CEOs, investors, and development partners converge on our shores for the G20 Leaders’ Summit on 22 and 23 November 2025, the world’s gaze will fall not only on our political leadership, but on our economic capability, our industrial resilience, and our readiness to take our place in a rapidly shifting global economy. For those of us tasked with building South Africa’s next-generation industrial platforms, this moment is far more than a diplomatic milestone. It is an opportunity to reshape the country’s industrial trajectory for decades to come. And for the Tshwane Automotive Special Economic Zone (TASEZ), it is a chance to demonstrate that South Africa can compete, innovate, and lead in one of the world’s most dynamic sectors: automotive manufacturing. South Africa in the global spotlight The G20 is not just a gathering of 20 world leaders. It is a year-long platform where global investment sentiment is shaped, where development financing agendas are debated, and where emerging markets like South Africa position themselves as credible partners in the global value chain. It has already triggered accelerated investments in infrastructure, logistics, and city improvement projects, particularly in Gauteng. This matters for industrial zones like TASEZ. Better roads, more reliable energy, and upgraded transport networks are the lifeblood of manufacturing competitiveness. But the physical changes are only part of the story. The more significant shift is reputational. A successful G20 presidency can strengthen investor confidence, deepen trust in our economic institutions, and position South Africa as a stable, future-oriented industrial hub. That alone makes this moment essential for TASEZ and the broader automotive sector. Global industrial priorities What excites me is how closely South Africa’s G20 priorities align with TASEZ’s mission. The 2025 agenda focused on: Financing the just energy transition Inclusive industrialisation Sustainable development The role of critical minerals Mobility and climate resilience These are not abstract ideas, they cut to the heart of the automotive industry’s transformation. As highlighted by the recent New Energy Summit held in Gauteng in October 2025, global value chains are pivoting to green mobility, clean manufacturing, and Africa’s integration into supply networks. TASEZ is uniquely positioned in this transition. We are already home to one of Africa’s most dynamic automotive production ecosystems, and we are preparing for a future that includes electric mobility, deeper localisation, and expanded supplier development. If South Africa leverages its G20 presidency effectively, we can secure the policy tools, partnerships, and financing mechanisms needed to accelerate this transition. Showcasing South Africa’s successes The world will not judge us by speeches alone. They will judge us by what we build. This is why TASEZ intends to use the G20 window to demonstrate what coordinated public–private investment can achieve. As the fastest-growing automotive special economic zone (SEZ) on the continent, we have a compelling story to tell — one of job creation, skills development, township inclusion, supplier growth, and industrial expansion. We should be bold in inviting foreign delegations, development finance institutions, and global OEMs to see the zone firsthand. Site visits, technical tours, and bilateral industry roundtables can turn interest into investment. The G20 gives us a once-in-a-generation platform to do this at scale. The G20 Leaders’ Summit will bring renewed attention to Africa’s role in the global economy. For TASEZ, this is an opportunity to expand its influence beyond South Africa’s borders. Through stronger relationships with the Southern African Development Community (SADC) and African Union partners, we can position TASEZ as a catalyst for regional automotive value chains — a future where components made in Botswana, Mozambique, Zambia, or Zimbabwe flow seamlessly into assembly lines in Tshwane. More than symbolic South Africa must convert visibility into tangible improvements in industrial competitiveness. We must guard against the tendency to treat major summits as symbolic rather than strategic. Investment is not secured by banners, speeches, or social media clicks. It is secured by credibility, efficiency, transparency, and delivery. For TASEZ, this means: strengthening governance; accelerating infrastructure development; ensuring investor facilitation is world-class; and delivering certainty around timelines, incentives, and operations. The 2025 G20 Summit is a strategic opportunity for South Africa to reposition itself as the continent’s industrial leader, providing a platform for government, business, and development partners to act with unity. For TASEZ, it is a chance to amplify what we already know: that South Africa can build globally competitive manufacturing hubs; that our people can produce world-class automotive products; and that, with the right partnerships, we can transition into the mobility future with confidence. The world is coming to South Africa. Will we use this moment to shape our industrial destiny? We at TASEZ intend to do just that.

How South Africa’s G20 Presidency can accelerate industrial growth through TASEZ Read More »

The green shoots of an economic recovery

News / Jenny Tennant

In his weekly newsletter published on 17 November 2025, President Cyril Ramaphosa wrote that in the week of the G20 Leaders’ Summit – the first to be held on African soil – South Africa is able to showcase a country and an economy on the rise. In the week that we prepare to host the first summit of the G20 on African soil, we are able to showcase a country and an economy on the rise. A number of key economic indicators and developments in the past week point to the green shoots of an emerging economic recovery. Unemployment is down. Data from Statistics South Africa show that the official unemployment rate fell to 31.9% between July and September this year, down from 33.2% recorded in the previous quarter. Nearly 250 000 more people were in employment in the third quarter. Of these, around 130 000 were added in the construction sector. The Medium-term Budget Policy Statement delivered last week points to a sustained turnaround in government finances. We are on track to achieve a third consecutive primary budget surplus. This means that, excluding interest payments on our debt, we are collecting more in revenue than we are spending. This is a sign of prudent financial management, giving us space to steadily reduce our debt to sustainable levels. Also last week, our sovereign credit rating was upgraded by S&P. This is the first such upgrade from the agency in nearly two decades. An improved rating generally leads to lower borrowing costs, which allows for more funds to be invested in the economy and in meeting social needs. Among the factors S&P cited for the positive outlook were Eskom’s improved performance, strong tax collection and the broad structural reform momentum having ‘picked up pace’. When we established Operation Vulindlela in 2020 as a government coordinating mechanism to implement transformative reforms and boost economic growth, the initial focus was on the network sectors as well as immigration reform. We are seeing steady progress in the logistics sector, notably with respect to improved performance at our ports. Measures to allow private sector companies to operate on the national freight rail network are also at an advanced stage. The most noteworthy improvements have been witnessed in the energy sector, with Eskom now on the road to recovery, massive investment in renewable energy generation, and vastly improved electricity supply. In support of South Africa’s ratings upgrade, S&P cited the recently launched Phase II of Operation Vulindlela, which is focusing on changes in local government, digital transformation, visa regimes, spatial inequality and others. Modelling from the University of Stellenbosch’s Bureau of Economic Research (BER) has estimated that the potential impact of the Operation Vulindlela reforms could lift South Africa’s long-term growth rate by as much as 3.5% when fully implemented. In citing this modelling, the analyst JP Landman writes that “the reforms are a journey, but they have started working. Step by step, South Africa is opening its economy, modernising infrastructure and rebuilding credibility”. Despite considerable headwinds that have including a global pandemic, a debilitating energy crisis and more recently, a difficult global trade environment, we have stayed the course on economic recovery and are now seeing this pay off. Following a ruinous period of economic stagnation and capture of the state, we have been able to achieve sustained progress in a relatively short period of time. This is in no small part owing to the strength of the partnerships forged between government, business, labour and civil society. These far-reaching economic changes have a direct and material impact on the lives of every South African, on their ability to lead dignified lives, to access public services, to secure employment, and to provide for their families. We are determined to sustain the momentum of this economic recovery, so that we can drive inclusive growth, create jobs and improve the lives of our citizens.

The green shoots of an economic recovery Read More »

TASEZ shows how SA can build an economy that works for all

News / Jenny Tennant

By Mandla Mpangase Every South African knows that when infrastructure fails, life becomes harder. Jobs disappear. Businesses relocate. Communities lose hope. But when infrastructure works, everything else begins to work too. Factories stay open. Investors arrive. That is the import of the speech given on 13 November 2025 by President Cyril Ramaphosa at the National Construction Summit held in Kempton Park, Ekurhuleni. “We are a gathered here not just to talk about building an industry, but to build a nation,” the president said, adding: “We are gathered here to share a dream and determination to build a country that works for all its people. South Africa’s national economic drive has never been only about building structures; it has always been about building a country that gives every person a fair chance – something clearly articulated in the National Development Plan (Vision 2030). And the message has been clearly stated through the years of democracy. “From a social development perspective, infrastructure provides people with what they need to thrive,” President Ramaphosa told the summit participants. “It improves the quality of life and can play a key role in reducing inequality. Through reliable infrastructure we can boost productivity and reduce costs of living.” It also provides countries with what they need to grow and develop. “Infrastructure facilitates trade and commerce. When we boost infrastructure through the construction industry we attract investment.” And few places capture this mission more clearly than the Tshwane Automotive Special Economic Zone (TASEZ). Where infrastructure becomes industrial strength “Infrastructure is the backbone of development because, among many other reasons, it bolsters economic competitiveness and sustainability. Without infrastructure economic growth slows down, inequality deepens and the quality-of-life declines,” Ramaphosa said. For years, underinvestment in roads, rail and logistics has held back the key sectors of mining, agriculture, and manufacturing. But South Africa is now shifting course. As the president pointed out: “Infrastructure is poised to once again become the flywheel of the economy. Infrastructure investment is one of the most effective levers for stimulating economic activity.” This is evident in the employment figures released by Statistics SA earlier this week. The latest Quarterly Labour Force Survey released by Statistics South Africa in November 2025 indicates a decrease in the official unemployment rate from 33.2% in the second quarter of this year to 31.9% in the third quarter. Employment increased by 248 000 in the third quarter, with construction the largest contributor with 130 000 new jobs. This is not an accident. It is the result of a deliberate national effort to turn infrastructure into a growth engine. And TASEZ is one of the clearest examples of what that looks like in practice. The special economic zone (SEZ) is proof that when investment is made in the right infrastructure such as reliable power, efficient logistics, modern digital systems, further investment is made, jobs are created, and industrial capability is strengthened. TASEZ is where South Africa’s automotive future is being built, factory by factory, with global manufacturers choosing the Tshwane SEZ because the fundamentals are already in place. A model for inclusive growth The zone is succeeding not only because of its industrial strength but because of its social impact. It is bringing economic activity to communities long left on the periphery. It is creating opportunities for young people entering technical fields. It is giving small businesses a stake in a globally competitive value chain. As TASEZ CEO, Dr Bheka Zulu, notes: “When we talk about spatial redress, this is what it looks like: development that doesn’t speak about communities but works with them.” Towards investment Government has committed R1-trillion in infrastructure spending over the medium term, alongside reforms to unlock greater private investment. Procurement war rooms, new public-private partnership guidelines and accountability frameworks are designed to ensure that projects do not stall but move quickly from planning to ground-breaking. As the world prepares to join South Africa for the G20 Leaders’ Summit, the country is showing what renewal looks like on the ground. Roads being rebuilt. Industrial zones like TASEZ expanding. If this momentum is sustained, TASEZ will not be the exception but the blueprint, demonstrating what is possible when strong infrastructure, a capable state and committed investors come together.

TASEZ shows how SA can build an economy that works for all Read More »

Auto industry continues to drive investment, jobs and innovation

News, Thought leaders / Jenny Tennant

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.

Auto industry continues to drive investment, jobs and innovation Read More »

TASEZ welcomes the State of the Nation address

News / Jenny Tennant

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) takes careful note of the key messages raised by President Cyril Ramaphosa in this State of the Nation address in Cape Town last night, 6 February 2025. One of the issues he raised was the need to ensure that growth creates jobs for all, especially for young people. “We are going to answer that call,” says TASEZ CEO, Dr Bheka Zulu. “Our aim in the special economic zone is to encourage investment within the global automotive manufacturing sector and in so doing, create jobs for the people of the City of Tshwane in general and the local communities of Eersterust, Mamelodi and Nelmapius in particular.” The president noted that the success of the Presidential Employment Stimulus shows how public employment programmes can create meaningful work that generates a wider benefit and contributes to sustainable employment. “The employment stimulus has created almost 2.2 million work and livelihood opportunities through innovative models that provide high-quality work to participants.” One of the industries of the future is in the automotive manufacturing space, with the setting of limits to carbon emissions and the rise of new energy vehicles, particularly in the European market, something TASEZ is directly involved in monitoring and supporting. President Ramaphosa noted: “To create jobs, we must leverage our unique strengths and our unrealised potential to build the industries of the future – green manufacturing, renewable energy, electric vehicles and the digital economy.” His comments about finalising a modernised and comprehensive industrial policy that drives economic growth by “focusing on the opportunities in localisation, diversification, digitisation and decarbonisation” is of particular importance to the automotive manufacturing industry. The South African Automotive Masterplan 2030 has set targets to deal with all of these issues: Grow South Africa’s vehicle production to 1% of global output Increase local content in South African-assembled vehicles to up to 60% Double employment in the automotive value chain Improve automotive industry competitive levels to that of leading international competitors Transformation of the South African automotive value chain Deepen value addition within South Africa’s automotive value chains In addition, South Africa will be working towards the full implementation of the African Continental Free Trade Area (AfCFTA), “which will tear down the barriers to trade on our continent”, the president said. “As the most industrialised economy in Africa, we are positioning ourselves to be at the centre of this new and growing market.” As a global role player, this is of particular importance to TASEZ. South Africa has been a key player in the development of AfCFTA’s automotive framework, which aims to enhance trade within the continent. The automotive sector is one of the country’s largest economic sectors. According to the Automotive Business Council, naamsa, the automotive industry contributes 5.3% to GDP [3.2% manufacturing and 2.1% retail], with exports equating to 14.7% of South Africa’s total exports – reaching 148 international markets. The manufacturing segment of the industry employs 110 000 people across its various tiers of activity and combined with the industry’s strong multiplier effect, is responsible for 457 000 jobs across the South African economy. With the national goals of making the economy more inclusive, TASEZ focuses on empowering those who were “deliberately excluded from playing a key role in the economy of their own country”, to quote the president: black industrialists; small, medium, and micro enterprises (SMMEs); women; the youth; and people with disabilities. TASEZ, in its Phase 1 development supported SMMEs to the tune of R1.7-billion and created 5 500 construction jobs and 3 311 permanent jobs for people from the local communities. Of the construction jobs, 18% were women, 60% were youth, and 0.86% went to people with disabilities. Of the permanent jobs, 32% went to women, 65.47% to youth, and 0.83% to people with disabilities. “As we enter Phase 2 of our development, we remain committed to transforming the sector, opening opportunities for SMMEs and black industrialists, and helping train people for the future,” said Dr Zulu.

TASEZ welcomes the State of the Nation address Read More »

SA determined to drive towards new energy vehicles

News / Jenny Tennant

By Mandla Mpangase Consideration must be given to providing incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of electric vehicles in South Africa. This statement by President Cyril Ramaphosa in his key note address at the South African Auto Week 2024 was greeted by much applause by the industry role players. Speaking at the high-level event in Cape Town on Thursday 17 October 2024, the president recounted the recent economic diplomacy efforts of government globally, including in New York, London and Beijing. “Our experience confirms a greater interest in South Africa’s prospects.” South Africa’s auto industry makes a significant contribution to the country’s gross domestic product, which currently sits at 5.3%, a fifth of the value add within local manufacturing comes from vehicle and component production. The auto industry accounts for around 15% of the country’s total exports. “[The industry] continues to blaze a trail in strategic economic markets on our continent, in North America, in Europe, as well as Indonesia.” It is also a major employer, collectively employing half a million people directly and indirectly across the value chain. Importantly, “the sector continues to actively support transformation”. The transformation targets have been set out in the South African Automotive Master Plan 2035. The plan sets out a number of targets: “The Automotive Industry Transformation Fund has supported a number of beneficiaries. It has facilitated market access for black-owned and female-owned firms to the value of R4-billion and supported thousands of jobs across the industry.” This year is a milestone for the automotive industry, marking 100 years of vehicle manufacturing in South Africa since the first Model T Ford rolled the assembly line of the Ford plant in Port Elizabeth (now Gqeberha). Industry leaders have shown great confidence in South Africa. Today the automotive manufacturing footprint has expanded exponentially, with international auto companies now major investors in the South African economy. “They have consistently featured prominently at the annual South African Investment Conference, which was inaugurated in 2018,” the president said, adding that “over the past few years, these companies have invested an average of some R8-billion rand a year.” Component suppliers have also invested a considerable amount into the South African economy – about R4-billion a year. However, the industry faces many challenges, including the transition towards decarbonisation, with a move to cleaner, more sustainable fuels and stringent regulations. “Even as the journey to net zero poses a challenge for the auto industry there is, at the same time, immense opportunity. The local automotive sector needs to position itself to take advantage for the demand of electric vehicles (EVs), new energy vehicles (NEVs) and sustainable fuels.” President Ramaphosa noted that this was a government priority. “The automotive industry has a critical role to play in achieving South Africa’s climate targets. We’re committed to working with the private sector to promote the production of NEVs and the development of the necessary infrastructure to support them.” This includes the beneficiation of critical minerals for the production of NEVs and their associated value chains, as well as the production of batteries and green hydrogen fuel cells for EVs. “We are working to finalise comprehensive NEV policy guidelines that include alternative technologies such as hybrids and plug in hybrids, so consideration must be given to incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of EVs.” The president noted that this was not just about creating a greener future, but also about ensuring South Africa remains competitive in the global market. “This is a major industrialisation opportunity for our country and the region as well, particularly within the context of the African Continental Free Trade Area. This will position South Africa as a forward-thinking green economy.”

SA determined to drive towards new energy vehicles Read More »