SMMEs Archives

TASEZ takes steps towards a zero-carbon footprint

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

News / By Jenny Tennant

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

News / By Jenny Tennant

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

News / By Jenny Tennant

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.