THE Tshwane Automotive Special Economic Zone (TASEZ) has issued a request for proposals for the construction of a new 15 megalitre concrete reservoir for the TASEZ Phase 2 programme. There will be a compulsory briefing session.Date: 20 November 2024Time: 10h00 – 12h00Venue: TASEZ Central Hub Manitoba, The Willows 340-Jr, Pretoria, 0081 Closing date: 11 December 2024 at 12h00.
THE Tshwane Automotive Special Economic Zone (TASEZ) has issued a request for proposals for the appointment of a service provider for the provision of dock leveller repair and maintenance services for 36 months CIDB Grading: 3 MEClosing Date: 9 December 2024Time: 12h00
THE Tshwane Automotive Special Economic Zone (TASEZ) has issued a request for proposals for the appointment of a service provider for the provisionof repairs and maintenance services of the roller doors for 36 months Closing Date: 10 December 2024Time: 12h00
THE Tshwane Automotive Special Economic Zone (TASEZ) has issued a request for proposals for the appointment of a panel of agencies for the provision of marketing and communication related services on a need basis for a period of 36 months Closing Date: 4 December 2024Time: 12h00Venue: TASEZ Central Hub Manitoba, The Willows 340-Jr, Pretoria, 0081
This request for TASEZ has issued a request for quotation for the appointment of an experienced and competent service provider to provide BBBEE verification services. Closing date: 18 November 2024 at 12h00
By Mandla Mpangase While fiscal prudence is the name of the game for the Minister of Finance Enoch Godongwana, a key standout – as far as automotive manufacturing industry in general, and the Tshwane Automotive Special Economic Zone (TASEZ) in particular – is the confirmation of rail upgrades between Tshwane and Gqeberha. Minister Godongwana delivered his 2024 Medium-term Budget Policy Statement (MTBPS) in the National Assembly on 30 October 2024. His policy statement outlined the country’s strategy to lift the economy to a higher and more inclusive growth path, and rests on four pillars: maintaining macroeconomic stability; implementing structural reforms; supporting growth-enhancing infrastructure; and building state capability. Speaking of the renewed energy that followed the national elections earlier this year, the minister said: “There is a new light that is shining down on our country and on our economy. The recent elections demonstrated the resilience and maturity of our young democracy.” Three priorities sit at the heart of government policy: Pillar three of the MTBPS is about effective infrastructure investment that will boost economic activity and enable higher growth over the medium term. “In this regard, we are implementing reforms that will create conditions to attract greater private sector participation.” One particular aspect of this is “to increase the pool of funders to diversify public infrastructure financing through new mechanisms and instruments. These include build-operate-transfer (BOT) structures and other concessions”. Included in this particular programme are capacity upgrades on the rail network from Watloo in the City of Tshwane – near TASEZ and the Ford plant in Silverton – to Gqeberha. This is particularly important given that the South African automotive industry is export-driven, with vehicles needing to be shipped to international markets. “It is important to capacitate the rail infrastructure between the original equipment manufacturers based in the City of Tshwane and our ports, which are crucial to the export of vehicles to our global markets,” TASEZ CEO Dr Bheka Zulu noted. Minister Godongwana added that a request for proposals will be issued this year for funders who are interested in supporting projects such as the Watloo to Gqeberha upgrades. “Collectively, the infrastructure reforms will strengthen planning, appraisal, contracting, financing, and monitoring and evaluation. “The outcome will be faster delivery of infrastructure that supports economic growth, the expansion of access to basic services and boosting job creation.” According to naamsa, the Automotive Business Council, Gauteng has the highest diversity in the country’s automotive profile, housing three OEMs as well as the majority of first- and second-tier automotive component suppliers in the country. “The economic muscle of the South African automotive industry, with its economic gains far outweighing its fiscal costs, cannot be underplayed.” Vehicle export value topped R203,9-billion in 2023.
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.”
By Mandla Mpangase From attracting foreign direct investments, to supporting auto component producers, to providing skills for the future, to opening up opportunities for local communities, the Tshwane Automotive Special Economic Zone (TASEZ) has an several key roles to play in the transformation of the automotive manufacturing sector. TASEZ CEO, Dr Bheka Zulu, described just some to the work TASEZ does during a panel discussion on the opening day of South Africa Auto Week 2024 in Cape Town. TASEZ is a key partner of this annual gathering of the industry. A hot topic at the high-powered event, taking place from 15 – 18 October 2024, is that of training skilled workers for an evolving sector, as the production of new energy vehicles (NEVs) is no longer on the horizon, they are already here. “South Africa’s workforce must keep pace,” Dr Zulu said. The rise of EVs, autonomous driving technologies, and smart manufacturing requires an entirely new set of skills. This is where the TASEZ Training Academy comes into play. With the manufacturing sector in constant change as the Fourth Industrial Revolution takes hold, TASEZ, through its’ training academy, is making sure that workers are equipped for this future. “This initiative is critical in ensuring that the country not only retains its competitive edge in automotive manufacturing but also contributes to the development of a highly skilled, future-ready workforce.” “But,” Dr Zulu told the panel, “our academy goes much further; it also offers training to emerging businesses and small, medium and micro enterprises (SMMEs) in both business management as well as the soft skills of marketing their products.” The CEO pointed out the importance of supporting SMMEs and the local communities bordering the SEZ. Currently SMMEs are estimated to contribute 40% towards South Africa’s Gross Domestic Product (GDP). The National Development Plan highlights the importance of SMMEs to the economy. It envisages that 90% of all jobs will be generated by small enterprises in 2030. “As South Africa charts a course toward a more competitive, inclusive, and sustainable automotive industry, we must all go all out to make grow and transform our sector,” Dr Zulu added.
The Coega Development Corporation (CDC) is inviting capable and competent contractors with a CIDB grading of 8EP or higher to submit their bids for the construction of the internal electrical and ICT infrastructure for Phase 2 of the Tshwane Automotive Special Economic Zone.
If South Africa is to transform the automotive sector as spelt out in the South African Automotive Master Plan 2035, the industry must take decisive action on a wide range of issues, including decarbonisation, writes TASEZ CEO Dr Bheka Zulu. As the country’s special economic zone (SEZ) focused primarily on the automotive industry, the Tshwane Automotive Special Economic Zone (TASEZ) is ready to play a key role in moving the transformation efforts forward. While South Africa has set itself the task of zero net emissions by 2050, many of the country’s automotive export markets have set stringent targets over the next decade and the original equipment manufacturers (OEMs) are gearing up for the change. No doubt, this will be one of the main talking points at this year’s South African Auto Week, taking place in Cape Town from 15 – 18 October 2024. The theme for this year’s event is Reimagining the Future Together: Celebrating 100-Years of automotive heritage, passion, resilience and ingenuity. Among the topics up for discussion are “Decarbonising the auto sector”, “A path to net zero”, and “SA NEV (new energy vehicle) transition: Policy choices and support instruments”. It is against these current discussions that input from research by Deloitte, Automotive Pathways to Decarbonisation, becomes both prophetic and doable. The report, that “by 2050, automakers are expected to reduce CO₂ emissions by 90%”. It goes on to note that “to reach these aggressive targets, however, the entire value chain will need to be decarbonised”. The Deloitte report states: “Despite ongoing advances in the fuel efficiency of vehicles with internal combustion engines, the automotive sector’s pathway to decarbonisation requires accelerated adoption of electric vehicles (EV). Beyond the regulatory push to reduce tailpipe emissions, this shift is also being driven by consumer demand. In response, automakers around the globe have been ramping up EV production and sales.” However, the sector is faced with the high costs of expanding EVs into the market place, inconsistent regulatory frameworks globally, insufficient access to green inputs such as batteries and steel, a lack of competitive green business models and strong sustainable strategies, the report adds. But all is not lost. “By quickly ramping up EV production, increasing usage of renewable energy, and establishing material circularity, automakers can enhance the industry’s ability to meet the Paris Agreement’s science-based emissions reduction targets.” Deloitte suggests OEMS and component producers adopt circular business models and transition clean energy in both production plants and usage by prioritising sustainability when extracting and processing basic materials, producing vehicles and their parts, and decommissioning vehicles at their end-of-life. “To achieve this target state, the sector will need to eliminate traditional sector boundaries, involve suppliers and customers in the solution, and foster strong cross-sectoral collaboration.” This is where TASEZ is well-equipped to play a significant transformative role as an SEZ. Its strength is in building strong strategic partnerships, supporting current and potential automotive manufacturing tenants in creating green facilities that incorporate the latest technologies, and helping to train a workforce familiar with future trends within the industry. TASEZ’s facilities already embrace green energy solutions, using battery and solar elements. In addition, the SEZ’s close ties with local industry associations, training institutions and industry role players ensure that investors are provided with access to the latest technologies. Because TASEZ is based in the City of Tshwane, it is surrounded by academic, innovative and technological institutions, which are more than capable of supporting tenants in terms of research and development. It is only through partnerships and collaborative action across the entire value chain that a strong decarbonised sector will be built – and there is not too much time left to do so.
