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Manufacturing could transform the economy and create jobs

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By Mandla Mpangase Expanding manufacturing is not merely a desirable goal for Africa, it is an essential foundation on which the continent’s economic transformation, job creation, and long-term prosperity depend. This strong message was shared by Gauteng Finance and Economic Development MEC Lebogang Maile at the Manufacturing Indaba 2025, taking place at the Sandton Convention Centre in Johannesburg. “This year’s gathering takes place under complex global economic and political realities where the African continent, and the entire global south, must re-think its place in the geo-political landscape,” the MEC said. “Re-thinking our place in this landscape also necessitates that we re-think how we are managing our economies and trade relationships,” Maile said. “It is becoming increasingly evident that the future of our continent lies in our ability to strengthen collaborations.” The message resonates strongly with the Tshwane Automotive Special Economic Zone (TASEZ), which has set out on a mission to be a catalyst for employment, transformation, and socio-economic development and industry growth by being a node attracting automotive suppliers and automotive manufacturers, assemblers and supporting services. The MEC noted that agriculture and raw material exports had long been the backbone of African economies, the future lies in a sector that has fuelled the rise of every modern economy: manufacturing. “The expansion of manufacturing is not merely a desirable goal for the continent. It is an essential foundation upon which Africa’s economic transformation, job creation, and long-term prosperity depend.” The manufacturing sector’s ability to absorb large numbers of workers, foster innovation, and build complex value chains, makes it a critical pillar for sustainable development, Maile added. The South African Automotive Master Plan Something that is important to the TASEZ efforts to support the South African Automotive Master Plan 2025, is that of localisation and by extension beneficiation of materials that are mined in the country. The master plan sets out several priorities to deliver on its vision of creating “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”. Included in the priorities is increasing local content used in manufacturing by 60% by 2035 – critical to this is the ability to beneficiate local minerals for use in manufacturing. “Exporting raw materials without adding value reinforces economic dependence on foreign nations that process and manufacture these materials for profit,” MEC Maile noted. Manufacturing offers an opportunity to move up the value chain, diversify economies, and reduce dependence on volatile international markets. “The continent’s demographic dividend could be the most important instrument in defining the future of the manufacturing sector,” he added. Manufacturing is also uniquely placed to provide the scale and diversity of jobs required for Africa’s youth – Africa has a young population that is growing. It is expected that the continent’s population will double by 2050 to reach 2.5 billion people, with the majority being under the age of 25. “Manufacturing can offer employment across a spectrum of skill levels, from low-skilled assembly to high-skilled engineering. Moreover, manufacturing jobs tend to offer higher wages, better job security, and more opportunities for advancement compared to informal and even agricultural work.” Adding value – and jobs Value addition not only increases export revenues but also fosters the development of supporting industries such as packaging, transportation, marketing, and financial services. These interlinked sectors create a multiplier effect, generating jobs and boosting incomes across the economy. “In the Gauteng Province, we see the value of our investment in the manufacturing sector,” Maile said. It is the largest sector in the provincial economy, employing more than 500 000 people, and is also the biggest in South Africa, contributing more than 33% to the gross domestic product. Manufacturing is also a powerful conduit for technology transfer. “As African firms engage in manufacturing, they gain access to new machinery, production processes, and management techniques.” Partnerships with foreign firms and integration into global value chains further accelerate the transfer of knowledge and skills. At the moment, Africa’s share of global manufacturing output remains less than 2%. “But the continent’s potential is enormous,” MEC Maile said. The African Continental Free Trade Area, which seeks to create a single market of over a billion people, offers an unprecedented opportunity for manufacturers to achieve economies of scale, access new markets, and increase competitiveness. “With the right policies, African manufacturers can integrate into global value chains, supplying not only regional markets but also Europe, Asia, and the Americas.” Despite its promise, the development of manufacturing in Africa faces significant hurdles, including inadequate infrastructure, unreliable energy supplies, limited access to finance, bureaucratic red tape, and skills gaps. “Addressing these challenges requires coordinated action by governments, the private sector, and international partners.” Key is investing in infrastructure. Reliable roads, ports, energy, and digital networks are essential for competitive manufacturing. “We must also prioritise improving the business environment. Streamlined regulations and transparent governance attract investment and foster entrepreneurship.” Skills are needed Another message from Maile hit home for TASEZ: making the building of human capital a key priority. TASEZ has launched its training academy to provide business-related skills to small, medium, and micro enterprises (SMMEs) as well as technical skills to workers who will be dealing with a changed automotive manufacturing sector that is focused on new energy vehicles. “Education and vocational training tailored to industry needs will ensure a skilled and adaptable workforce,” Maile told the Manufacturing Indaba. In addition, regional integration is one of the most critical priorities if the continent is to realise its manufacturing potential. “Strengthening trade ties and harmonising regulations across borders is crucial,” the MEC said. “Regional integration significantly boosts manufacturing economic development by expanding markets, fostering specialisation, and promoting innovation and efficiency. It allows countries to overcome limitations of smaller domestic markets, creating larger customer bases and facilitating economies of scale in manufacturing.” Integration also encourages specialisation within regional value chains, leading to increased efficiency and competitiveness. In his conclusion, the MEC reminded the audience: “The choices made today will

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 takes steps towards a zero-carbon footprint

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By Mandla Mpangase Setting up a sturdy, resilient and green energy mix for the Tshwane Automotive Special Zone (TASEZ) is a must-do on so many levels. Electricity is essential for driving manufacturing; automotive Original Equipment Manufacturers (OEMs) require a constant and consistent supply; and globally countries are demanding clean energy products. A key aspect of the TASEZ business plan is to mitigate any risk in the energy supply chain and offer various alternatives, from solar to gas power. “It is imperative that TASEZ, through its advancements in the formulation of a green energy mix solution, shares lessons and benchmarks with other industrial development zones and special economic zones (SEZs) who are underway with development of their green energy solutions,” says TASEZ head of infrastructure development, Andile Sangweni. “In this way TASEZ becomes a catalyst in advancing green energy considerations.” TASEZ has positioned itself as a benchmark for green industrialisation through a 25-year solar photovoltaic rooftop and battery storage project across the 12 factories in its hub, reducing reliance on Eskom and enhancing energy resilience. In developing its green energy strategy, TASEZ has undertaken various initiatives in gaining a better understanding of the solar independent power producer model and its benefits. One such initiative was a due diligence mission to China that validated the technical, financial, and socio-economic viability of the solar initiative. In addition, there has also been a focus in the integration of local small, medium and micro enterprises (SMMEs) and labour from the City of Tshwane’s townships into the solar value chain. This also aligns with the Gauteng Provincial Government’s socio-economic development plans. These initiatives are not only mitigating power supply risks but also positioning TASEZ as a green manufacturing hub, particularly attractive to OEMs like the Ford Motor Company, which is TASEZ’s anchor tenant. The right thing to do Beyond being a smart business decision, it is also an ethical choice. The country’s National Development Plan, Vision 2030 envisages a country that has an energy sector that promotes: The United Nations’ Sustainable Development Goal 7 calls for access to affordable, reliable, sustainable and modern energy for all – placing an emphasis on clean energy. In Phase 1 of its development TASEZ began introducing a mixed energy operation, with the planned installation of solar panels at its zone facilities, currently underway towards implementation. TASEZ, which is strategically based in the heart of Gauteng’s automotive manufacturing hub, has emerged as a trailblazer in renewable energy integration, particularly through its solar independent power producer (IPP) and green energy initiatives. TASEZ is a key driver in enabling export of products worldwide and is committed to green manufacturing. It is predicted that beyond 2030, the country will need environmentally-friendly energy sources to retire the current fleet of coal-fired power stations.  Now, with the start of its Phase 2 development, TASEZ is working closely with Chinese energy supplier Heshun Energy, which has its headquarters in Xiamen, in the Fujian Province, on expanding its energy mix. Heshun Energy was the winning bidder to finance, design, supply, install, operate and maintain solar photovoltaic rooftop power panels and battery storages systems in TASEZ’s factories for 25 years. At the end of that period the plant will be transferred to TASEZ. Inclusive development As with all TASEZ’s projects, Heshun Energy is required to meet the requirement of setting a minimum target of 30% to subcontract local small, medium and micro enterprises and labour from the local communities, targeting specifically Wards 6, 15, 18, 28, 38, 41, 43, 67 and 86. Heshun Energy is engaged globally in the investment, construction and operation of distributed photovoltaic power stations (using solar energy) and distributed energy storage systems, with a focus on providing safer and more reliable green energy solutions. Some of its solutions have been implemented by Coca-Cola and China International Marine Containers among others. “We need to harness different energy solutions, not only for our own sustainability, but also for the sustainability of the manufacturing that takes place at the economic hub,”CEO Dr Bheka Zulu noted during a presentation to a delegation of the Southern African Development Community to the zone. The European Union, for example, will not buy any imported vehicles that emit CO₂ from 2035, a short decade away. “We are already preparing to export abroad products that do not have a carbon footprint.” TASEZ aim is to attain a carbon neutral footprint by 2027: “We don’t want to wait until 2035,” the CEO added. “Heshun Energy will be providing TASEZ with some of the energy we need in our SEZ,” Dr Zulu said.

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.”