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TASEZ focuses on developing small enterprises for future growth

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By Mandla Mpangase The 2025 Tshwane SMME Symposium explored the best ways to prepare small businesses for the industries of the future. It is important to prepare now so that small, medium and micro enterprises (SMMEs) will be in a position to lead both the country and the continent in the green economy, in technology, and in automotive manufacturing. The symposium, held on 6 May 2025 at the Innovation Hub, was hosted by the Tshwane Economic Development Agency along with the South African Electrotechnical Export Council and the Innovation Hub. The Tshwane Automotive Special Economic Zone (TASEZ) featured in a panel discussion on the road map for South African SMMEs to participate in future economies, with a particular focus on the automotive sector, digital technology and the energy sector. TASEZ CEO Dr Bheka Zulu spoke of the importance of understanding the impact SMMEs made in their sector, rather than simply looking at the numbers. “We need to know how we change lives, what are the SMMEs taking home?” He noted that TASEZ had ring-fenced R1.7-billion for SMMEs during the special economic zone’s Phase 1 development. Dr Zulu also addressed the issue of the skills gap within the automotive sector. TASEZ is now working closely with a number of partners to make sure the gap is closed. Technology can be a vital way to help the informal sector to grow. Another aspect was that SMMEs needed to be supported with research and development, Dr Zulu noted. He referred to a Chinese company, BYD, that has only been going for a decade. “They started as a battery manufacturer, but they evolved as the economic environment changed and now build cars. Last year they manufactured five million vehicles.” South Africa’s SMMEs must be strong enough to follow the same trajectory. It is vital to make sure that all role players understand the needs of the SMMEs and that SMMEs understand the requirements of industry. “Partnerships are important so that everyone understands the needs, requirements, constraints and challenges.” Partnering with established companies and organisations also makes access to markets much easier for SMMEs, who then have a champion lobbying on their behalf with the larger role players, Dr Zulu said. A key focus for TASEZ as it rolls out its Phase 2 development, is its support for black industrialists. The SMME symposium involved local SMMEs, representatives from a number of government agencies, potential funders, and industry partners, who all joined forces come up with concrete strategies to integrate township small businesses into mainstream supply chains and future-focused sectors. The Executive Mayor of the City of Tshwane, Dr Nasiphi Moya, summed up the importance of SMMEs to the job creation and innovation: “These enterprises are the lifeblood of our economy, the backbone of local employment, and the heartbeat of township revitalisation.” The symposium focused on how all the economic sector players can support, strengthen, and boost local SMMEs.

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Women of the SEZs initiative launched in Mamelodi

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Shining a spotlight on the role of women in South Africa’s economy, a significant event took place in Mamelodi on 7 September 2023 with the launch of the Women of the SEZs initiative. The initiative aims to showcase the achievements of women in the special economic zones (SEZs) space, inspire future generations, and create an environment that nurtures their growth and success. Welcoming participants to the event, Tshwane Automotive Special Economic Zone (TASEZ) corporate services executive Vangile Nene said the intention of the initiative is to create a legacy, much like how people look back at the contribution made by the women of 1956, who marched to the Union Buildings protest the pass laws. “We hope that generations will look back on this day,” she added. Among those attending the launch was the chair of the SEZ CEO Forum Kaashifah Beukes; the acting deputy director-general responsible for industrial finance at the department of trade, industry and competition and TASEZ board member, Susan Mangole; Irene Ramafola, the chair of TASEZ’s audit and risk committee; TASEZ’s CFO, Rebecca Hlabatau; and Lebogang Zwane, project manager at the Motheo Construction Group. Also present were community liaison officers from the Community Project Committee, a structure set up between the local communities of Eersterust, Mamelodi and Nellmapius and TASEZ to find ways of working together to create local job opportunities and training programmes; representatives from DSV, Feltex and Automould – factories based within the TASEZ hub; and the women of TASEZ. The Women of the SEZs initiative is a declaration of the sector’s commitment to building a future where women’s voices are not only heard but celebrated, and where their contributions are not only acknowledged but revered. Growing the Women of the SEZs initiative “We want to grow this initiative and involve all the other SEZs across the country, and beyond,” Nene added, while Mangole noted that “today marks an important day, where we find ways to inspire and build women.” Central to the launch was a panel discussion on the role of women in South Africa’s key economic sectors and how the role they can play in bring about transformation. Ramafola, as the panel moderator, pointed out that the women of 1956 had their own challenges, and “we have ours”. “While South Africa has made great strides in building a non-sexist society and progress has been made to promote gender equality, the same cannot be said when it comes to the economy,” she said. “Why is this the case?” she asked the panel. Panellists Mangole, Beukes and Zwane spoke passionately about the challenges women face in the industrial sectors, sharing practical solutions and personal experiences. Ideas raised during the wide-ranging discussion included: The Women of SEZs initiative is a rallying cry, a call to action to champion diversity, foster inclusivity, and empower excellence. It serves as a testament to the unyielding determination of women who continue to steer the course of progress, innovation, and collaboration within the SEZs and beyond.

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Growing township automotive sector through investment, regulating, upgrading skills

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Government takes the automotive sector very seriously, Premier Panyaza Lesufi said at a workshop on township mechanics held in Johannesburg on Wednesday, 6 September 2023. Addressing a packed hall of industry role players including the Tshwane Automotive Special Economic Zone (TASEZ), the Retail Motor Industry Organisation (RMI), the MerSETA (Manufacturing, Engineering and Related Services), the Automotive Industry Development Centre (AIDC), professional automotive mechanics, apprentices and learners, Lesufi said that key to investing in and growing the sector – particularly in the province’s townships – it was important to make sure that the businesses needed to be regularised and be competitive. In addition, “those who want to invest in the townships must invest on our terms. They must consult with the local players and make sure they empower them”, Lesufi said. The workshop was part of the Growing Gauteng Together initiative run by the Gauteng provincial government and the Gauteng department of economic development. He told the delegates at the workshop that the township economy was critical to developing the country’s economy in general. “This is the only province that has passed a law ensuring that the government will buy services from townships, hostels and informal settlements.” TASEZ is a prime example of ensuring that townships are included in the development of the automotive sector. One of the policies essential to the TASEZ business model is that investors must make provision for the inclusion of local community members in their workforces. Lesufi’s message drew on the data shared by the Deputy Minister of Trade, Industry and Competition, Fikile Majola, who noted that the workshop should provide long-lasting, actionable solutions. SMMEs crucial to economic growth The triple challenges of unemployment, poverty, and inequality impact on the country’s development agenda, and the townships are the epicentre of these challenges. More than a quarter of South Africa’s population live in townships and more than half of those in the townships are unemployed, yet the township economy is critical to the country. He referred to the importance of special economic zones (SEZs) being connected to the township model of economic development. SEZs are geographically designated areas set aside for specifically targeted economic activities to promote national economic growth and exports by using support measures to attract foreign and domestic investments and technology. TASEZ, Africa’s first automotive city, is located in Silverton near the townships of Eersterust, Mamelodi and Nellmapius. Much of the workforce used in the factories based at TASEZ come from the surrounding communities. Majola noted that the South African Automotive Masterplan spoke about doubling production by 2035. “One million cars are manufactured annually on the African continent, with 700 000 of those coming from South Africa, Morocco and Egypt.” The continent had a population of 1.3 billion. He compared this to the production figures from India, which manufactures 4 000 000 cars a year. It has a population of 1.4 billion. “We must be more competitive and ramp up production.” And that can be done through developing small, medium and micro enterprises (SMMEs). “Globally, all economies are driven by SMMEs, but the number of SMMEs in this country is too small for an economy the size of South Africa,” Majola added. “If we are to expand the SMME base in South Africa, we have to think outside the box, but within the law.” Collaborative efforts TASEZ has a team dedicated to helping develop SMMEs and providing skills development programmes. Gauteng MEC for Economic Development Tasneem Motara pointed out just how important the automotive sector is to South Africa. It contributed 4.9% to the gross domestic product (GDP) in 2023. “It is a huge player in the economy with the potential to grow.” However, she added, picking up on the issues of SMMES: “How do we address the challenges small businesses face?” Common challenges include struggling to access to markets; financing; to support; and infrastructure. The automotive sector had added challenges, such as being unable to receive reliable parts; a lack of entrepreneurial skills; and the onerous and expensive accreditation processes. Collaboration was key to growing small businesses. “We need to focus on the informal sector, but also ensure that industry bodies are included.” Skills development was crucial, she added. “We have to find meaningful solutions.”

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