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South Africa’s SEZs under spotlight as leaders push for greater industrial impact

By Mandla Mpangase Government and industry leaders have called for a fundamental shift in how South Africa’s Special Economic Zones (SEZs) deliver value, arguing that stronger integration with spatial planning and industrial policy is key to unlocking growth. This emerged at a breakfast session hosted at the Gordon Institute of Business Science (GIBS) in Illovo, Johannesburg, on Friday, 20 March 2026, forming part of the roadshow to the 2026 Gauteng Investment Conference. Opening the session, Gauteng Growth and Development Agency (GGDA) acting CEO Sithembiso Dlamini outlined the province’s strategy to position SEZs as anchors of development corridors, driving infrastructure investment and manufacturing-led growth. She highlighted recent progress in Gauteng’s SEZ programme, stressing its role in catalysing regional economic activity. A central theme of the discussion was how to close the “value-for-money” gap in SEZ investments. Trade expert Donald MacKay presented findings from a comparative study of global and local SEZ performance, noting that while South Africa has made progress, structural and policy shortcomings continue to limit impact. He pointed to the need for targeted reforms to improve efficiency, attract investment, and boost export competitiveness. From a policy perspective, Maoto Molefane, the special advisor to the Minister of Trade, Industry, and Competition and chairperson of the Tshwane Automotive Special Economic Zone (TASEZ), outlined the government’s new Spatial Industrial Development Strategy. He acknowledged limitations in the current SEZ model, including fragmentation and uneven returns, and said the new approach aims to better align industrial spending with national development goals. “The focus is on ensuring that every rand invested delivers measurable industrial outcomes,” Molefane said. Insights from operational SEZs reinforced the importance of execution and partnerships. Dube TradePort CEO Hamish Erskine reflected on the evolution of the KwaZulu-Natal-based SEZ, highlighting the role of logistics integration, infrastructure planning, and strong governance in its success. He said the model demonstrates how SEZs can drive broader regional development, including job creation and small business growth. Meanwhile, TASEZ CEO Dr Bheka Zulu emphasised the importance of sector-focused development, noting that strategic partnerships – particularly with major investors such as Ford – have been central to its rapid growth. Zulu also pointed to the need for SEZs to adapt to global shifts, including the rise of new energy vehicles, as part of their future positioning. The session concluded with consensus that South Africa’s SEZ programme must evolve beyond isolated zones into fully integrated industrial ecosystems, capable of delivering sustained economic impact, increased exports and long-term investment attraction. The discussion forms part of ongoing engagements ahead of the Gauteng Investment Conference scheduled for 9 April 2026, where infrastructure, manufacturing and industrial policy are expected to take centre stage.

Logistics roundtable sets stage for 2026 Gauteng Investment Conference

By Mandla Mpangase “The opportunity is not ahead of us – it is here,” the head of the Gauteng Department of Economic Development, Motlatjo Moholwa, told participants at a high-level roundtable on logistics in Pretoria on 19 March 2026. With Gauteng contributing approximately 34% of South Africa’s GDP and more than 45% of its manufacturing output, Moholwa used the platform to reinforce the province’s position as the country’s industrial powerhouse and a prime destination for investment. The roundtable, convened by the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ), forms a key part of the build-up to the 2026 Gauteng Investment Conference taking place on 9 April 2026 It brings together senior representatives from government, state-owned entities, logistics operators, manufacturers and investors to align on priorities that will shape Gauteng’s investment pipeline. “This roundtable is more than a conversation,” Moholwa said. “It is a strategic platform feeding into the Gauteng Investment Conference, where we will showcase bankable projects and present Gauteng as an investment-ready destination.” Driving toward an investment-ready province At the heart of discussions is the need to strengthen Gauteng’s logistics ecosystem to support industrial expansion, particularly in the automotive sector, where the province hosts a dense network of component manufacturers and OEM-linked operations from Rosslyn in the west to Silverton in the east, and across the broader Tshwane corridor. Participants are focusing on practical reforms to: These interventions are expected to play a key role in attracting private sector participation and ensuring that infrastructure development aligns with the province’s broader industrial strategy ahead of April’s conference. Localisation and industrial growth A major theme emerging from the roundtable is the importance of component localisation in deepening Gauteng’s manufacturing base. “With its well-developed industrial infrastructure, access to skilled and semi-skilled labour, and strong technical training institutions, Gauteng is not just participating, it is a leading component manufacturing. “This makes the province an ideal destination for investment,” Moholwa said. Moholwa highlighted opportunities in import replacement, the growing automotive aftermarket, and export expansion through the African Continental Free Trade Area (AfCFTA). He also pointed to the rise of green mobility as a new frontier for investment, particularly in electric vehicle components and advanced materials. However, he stressed that unlocking this potential will require deliberate action, including stronger supplier development programmes, improved access to finance, and greater coordination between OEMs and local suppliers. Infrastructure is the foundation Infrastructure remains a central pillar of Gauteng’s investment drive. The roundtable discussions are exploring how enhanced road and rail integration, coupled with targeted infrastructure investment, can reduce inefficiencies and improve the movement of goods across key corridors. With established industrial zones, specialised facilities such as the Automotive Supplier Park, and incentives offered through special economic zones like TASEZ, Gauteng is positioning itself as a globally competitive manufacturing hub. “Manufacturers benefit from market access to the SADC region, an established industrial base that reduces the cost of entry, and dedicated facilities such as the Automotive Supplier Park and Special Economic Zones like TASEZ, which offer world-class infrastructure, incentives, and streamlined regulatory processes. Public-private partnerships and government commitment further strengthen the province’s investment readiness,” Moholwa added. Countdown to 9 April As the province prepares for the conference, engagements like today’s roundtable are helping to refine its investment narrative to one based on infrastructure development, industrial expansion and localisation. “Scaling localisation requires deliberate action,” he said. “We must strengthen supplier development programmes to build technical capability and quality standards, improve coordination across OEMs and suppliers, and invest in skills development, technology adoption, and industrial infrastructure. “Equally important is enhancing access to finance and markets for emerging manufacturers and providing policy certainty that encourages local production.” The head of the province’s Department of Economic Development issued a three-fold challenge to the participants at the roundtable: “We call on industry to invest, expand, and partner locally. We call on government and agencies to enable, support, and accelerate. And we call on all stakeholders to collaborate in building a globally competitive, locally anchored manufacturing ecosystem.” Moholwa’s call to action was unequivocal: collaboration between government, industry and institutions will be essential to translate plans into tangible investment outcomes. With just weeks remaining before the conference, Gauteng is not only making its case to investors, it is also shaping the conditions needed to secure long-term, inclusive economic growth.

Logistics roundtable to shape investment agenda ahead of Gauteng Investment Conference

By Mandla Mpangase As Gauteng gears up for the highly anticipated Gauteng Investment Conference (GIC) on 9 April 2026, government and industry are intensifying efforts to position the province as a leading investment destination, with infrastructure, manufacturing and the automotive sector at the centre of that strategy. A key step in this journey is an upcoming high-level Logistics Roundtable, convened by the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). The engagement will bring together senior representatives from government, state-owned entities, logistics operators, manufacturers and investors to address one of the most critical enablers of economic growth: an efficient, modern logistics ecosystem. The roundtable is not a standalone event, but a precursor to the GIC, designed to ensure that the province’s investment propositions are cemented in practical, bankable solutions. By tackling structural bottlenecks and identifying opportunities for reform, the session will help shape the infrastructure and logistics priorities that will be presented to investors in April. At the heart of discussions will be the urgent need to strengthen freight and corridor efficiency, a longstanding constraint on South Africa’s industrial competitiveness. Stakeholders will explore ways to improve the integration of road and rail networks, reduce congestion, and unlock the full potential of Gauteng as a logistics hub for both domestic and regional trade. Equally important is the focus on infrastructure investment. With growing demand for reliable transport networks, energy systems, and industrial facilities, the roundtable will seek to identify projects that are not only viable but also capable of attracting meaningful private-sector participation. These projects are expected to form part of a broader investment pipeline to be showcased at the conference. The manufacturing sector, particularly automotive production, will feature prominently in the discussions. As one of Gauteng’s key economic drivers, the automotive industry holds significant potential for job creation, industrial expansion and export growth. The roundtable will examine how improved logistics and infrastructure can enhance the competitiveness of manufacturers operating within the province, including those in strategic hubs such as TASEZ. A highlight of the programme will be a panel discussion on component localisation, a key issue for the sustainability of South Africa’s automotive value chain. Panellists will assess how increasing the local production of automotive components can strengthen domestic supply chains, reduce import dependency, and create new opportunities for local manufacturers. However, the discussion will also address the practical challenges of localisation, particularly logistics inefficiencies and infrastructure limitations. Addressing these constraints will be key to ensuring that localisation efforts translate into tangible economic gains. Ultimately, insights from the Logistics Roundtable will feed directly into the Gauteng Investment Conference, helping to align industrial development priorities with the province’s broader investment strategy. By ensuring that policy, infrastructure and industry needs are closely coordinated, Gauteng aims to present a compelling, investor-ready narrative. As the countdown to 9 April continues, the message to potential investors is clear: building a competitive economy requires more than ambition; it demands coordinated action, strategic investment, and a logistics system capable of supporting growth at scale.

From growth to dignity: Why coordinated industrialisation is Gauteng’s best weapon against unemployment

Dr Bheka Zulu, CEO of the Tshwane Automotive Special Economic Zone, reflects on Gauteng’s MEC for Economic Development and Finance, Lebogang Maile’s call to tackle unemployment through sustained, coordinated implementation that transforms growth into jobs. Gauteng MEC for Finance and Economic Development, Lebogang Maile, is correct in asserting that addressing unemployment in the province is no longer about isolated interventions, but about sustained, coordinated implementation that transforms growth into jobs – and jobs into dignity, stability, and hope. This is not simply a policy statement; it is a call to action that speaks directly to the structural realities of South Africa’s economy. For too long, economic growth and employment outcomes have moved on separate tracks. Investment announcements have not always translated into meaningful opportunities for communities, and skills programmes have not always aligned with industry demand. Bridging this gap requires precisely the kind of coordinated execution the MEC is advocating. At the Tshwane Automotive Special Economic Zone (TASEZ), we see daily evidence that when alignment is intentional, growth does convert into jobs. Special Economic Zones are designed to function as integrated ecosystems – bringing together government policy, infrastructure investment, private sector capital, skills development institutions, and local enterprise participation into a single industrial platform. This coordination reduces barriers to investment while accelerating employment creation across multiple layers of the economy. The automotive sector provides a powerful illustration. Industrial expansion anchored by major manufacturers such as Ford Motor Company not only creates jobs on the factory floor, but also drives supplier development, logistics demand, construction activity, services growth, and opportunities for small and medium enterprises. Each manufacturing job can support several additional jobs across the value chain. When scaled, this multiplier effect becomes a meaningful response to unemployment. However, coordination cannot stop at attracting investment. It must extend to localisation strategies that deepen domestic supplier participation, targeted skills development that prepares young people for modern manufacturing, and deliberate pathways for township and small businesses to enter industrial value chains. Without these linkages, economic growth risks remaining abstract — visible in statistics but not felt in households. The MEC’s emphasis on dignity and hope is particularly important. Employment is not merely an economic indicator; it is a foundation for social stability. Work provides income, certainly, but it also provides identity, confidence, and belonging. Communities with access to sustainable employment experience lower inequality, stronger family structure,s and greater resilience. Industrialisation, therefore, should be understood not only as an economic strategy but as a social compact. For Gauteng to succeed, three priorities stand out. First, implementation discipline must become non-negotiable. Plans and strategies are abundant; execution is the differentiator. Projects must move from announcement to completion faster, with measurable outcomes and clear accountability. Second, collaboration across spheres of government and institutions must deepen. Provincial initiatives, national industrial policies, municipal planning, and private sector investment need to operate within a shared framework focused on employment outcomes. Third, policy certainty and investor confidence must be protected. Industrial investment is long-term by nature. Businesses commit capital when they trust the stability of the environment in which they operate. Consistency and reliability in policy signals are therefore critical to sustaining job creation momentum. Gauteng remains South Africa’s economic engine. Its infrastructure, industrial base, financial ecosystem and human capital position it uniquely to lead a new phase of re-industrialisation. But leadership will ultimately be judged not by growth rates alone, but by whether that growth changes lives. If we succeed in translating investment into factories, factories into jobs, and jobs into dignity, stability and hope, then we will have met the challenge MEC Maile has placed before us. And that is a goal worth coordinating around.

Gauteng Budget 2026 prioritises infrastructure, investment and industrial growth to drive job creation

By Mandla Mpangase The Gauteng Provincial Government has tabled a R549.3-billion medium-term budget aimed at accelerating infrastructure development, attracting investment and strengthening manufacturing to stimulate economic growth and job creation across the province. Presenting the 2026/27 budget in the Gauteng Legislature, MEC for Economic Development and Finance, Lebogang Maile, said the province is prioritising infrastructure expansion, industrial development and investment facilitation as key drivers of inclusive growth. The budget theme, “The audacity of hope: A collective commitment to building a resilient Gauteng,” reflects the province’s strategy to rebuild economic momentum while addressing unemployment, infrastructure backlogs and service delivery challenges. Infrastructure spending to unlock growth Infrastructure investment forms a cornerstone of the provincial strategy, with R36.4-billion allocated to infrastructure programmes over the Medium-Term Expenditure Framework (MTEF). Of this amount, R22.7-billion will fund the expansion of infrastructure capacity to meet rising demand, while R13.8-billion will be directed towards maintaining and rehabilitating existing assets. Maile said infrastructure investment is critical to improving service delivery while also acting as a catalyst for economic growth and employment. “Infrastructure is the bridge between hope and visible delivery,” he said. “It supports long-term growth, improves service delivery and creates jobs.” Major allocations will focus on healthcare facilities, schools, human settlements and transport infrastructure, as well as bulk infrastructure to support economic development projects and Special Economic Zones. The province is also prioritising energy-related infrastructure projects to support municipalities and improve energy security. Special economic zones and industrial development The budget reinforces Gauteng’s re-industrialisation agenda, with funding directed towards Special Economic Zones, township industrial hubs and revitalised industrial parks. The Gauteng Growth and Development Agency and the Gauteng Enterprise Propeller will play a key role in implementing investment and industrial programmes. Funding will support: These initiatives are aimed at strengthening manufacturing capacity, boosting exports and integrating local firms into regional value chains under the African Continental Free Trade Area. Investment pipeline gaining momentum Investment attraction remains a central focus of the provincial growth strategy. Maile highlighted the success of the inaugural Gauteng Investment Conference 2025, which secured R312.5-billion in investment pledges from domestic and international investors. According to the MEC, implementation of these commitments is already underway. “Eighteen out of 60 projects are now in rollout stage, representing over R80 billion in investments entering the real economy,” Maile said. These projects include infrastructure construction, energy developments and industrial expansions expected to generate significant employment opportunities. The province aims to secure R800-billion in investment commitments by the end of the current administration, with the next Gauteng Investment Conference expected to announce additional projects. Public-private partnerships to expand infrastructure With fiscal pressures limiting government spending capacity, the province plans to expand the use of public-private partnerships (PPPs) to fund large-scale infrastructure projects. Maile cited the Gautrain as a successful example of a PPP model. The province is currently preparing to appoint a new concessionaire for the Gautrain system as the current concession agreement approaches its conclusion in March 2026. By that time, the system will become a fully paid-up state asset valued at approximately R45-billion. Beyond rail transport, PPP opportunities are being explored across sectors including water, tourism, digital infrastructure, energy and environmental services. Projects under consideration include the Gauteng Provincial Network, a provincial data centre and scholar transport infrastructure. Transport infrastructure and logistics Transport infrastructure remains another key economic priority. The Gauteng Department of Roads and Transport will receive R10.2-billion in 2026/27 to fund road upgrades, maintenance and public transport improvements. The programme includes strategic road upgrades linked to Special Economic Zones, expansion of intermodal transport hubs and the development of a single electronic ticketing system to integrate public transport across the province. Economic outlook and job creation Gauteng remains the largest contributor to the South African economy, generating more than R2.4-trillion in regional GDP, roughly one-third of the national economy. The province created over 250 000 jobs in 2025, with trade and construction among the leading sectors. Economic growth in Gauteng is projected to reach 2.1% in 2026, outperforming the national growth forecast. Maile said the province’s economic strategy is focused on converting investment commitments into real projects that generate employment. “Our focus is moving from plans to projects,” he said. “We are building an investment pipeline that translates strategy into bankable opportunities and tangible jobs.” Fiscal discipline amid constrained resources Despite its economic strength, Gauteng faces fiscal constraints due to rising service demands and obligations such as the province’s share of Gauteng e‑Toll System debt. The province has already paid R9.3 billion towards the R20 billion principal debt and must make further repayments over the medium term. Maile emphasised that fiscal discipline would remain central to the province’s approach. “We must be intentional in funding what works,” he said. “Hope must be funded, and commitment must be measured.” Building a resilient provincial economy Ultimately, the budget aims to align infrastructure investment, industrial development and investment attraction to strengthen Gauteng’s position as the economic engine of South Africa. Maile said the province’s long-term vision is to build an inclusive economy that creates jobs while improving living conditions for residents. “Our task is to restore public finances, sustain investment in infrastructure and unlock economic opportunities,” he said. “This is how we build a resilient Gauteng.”

Building South Africa’s economy begins with building its skills base

By Mandla Mpangase The importance of artisans and vocational excellence takes centre stage this week as the WorldSkills South Africa National Competition, Conference and Career Festival 2026 takes place at the Inkosi Albert Luthuli International Convention Centre in Durban. The event, on 9 and 10 March 2026, brings together various delegates, from industry leaders and policymakers to educators and young competitors, to explore how artisan and vocational skills can help build a more competitive and inclusive South African economy. Over 200 students from TVET (technical and vocational education and training) colleges, universities of technology and training providers are competing across 27 technical and vocational skill categories, with the top performers set to represent South Africa at the global WorldSkills competition in Shanghai later this year. Skills as a driver of economic growth The conference theme “Building a skilled and competitive workforce for the future” speaks directly to South Africa’s pressing challenge of unemployment and the shortage of skilled artisans across multiple sectors. Artisan training has become a strategic priority for the country, particularly in fields such as welding, electrical work, robotics, aircraft maintenance and manufacturing technologies. Programmes linked to the WorldSkills movement aim to strengthen vocational education and encourage young people to consider careers in the skilled trades, areas widely regarded as essential to economic expansion. Government has repeatedly highlighted that strengthening the artisan pipeline is key to achieving the ambitions of the National Development Plan 2030, which calls for a significant increase in the number of trained artisans to support industrialisation, infrastructure development and job creation. South Africa has set a target of producing around 30 000 qualified artisans annually by 2030, a goal closely aligned with initiatives such as WorldSkills that promote technical excellence and industry-ready training. Bridging education and industry Beyond the competition, the Durban event also features a conference programme and career festival designed to connect learners with employers and training institutions. High school learners and unemployed youth are being exposed to potential career pathways through apprenticeships, workplace learning and vocational training opportunities. The event is intended to help reshape perceptions about technical careers, positioning artisan professions as high-value contributors to the modern economy rather than fallback options. TASEZ Training Academy joins the conversation Among the organisations participating in the conference is the TASEZ Training Academy, representing the skills development arm of the Tshwane Automotive Special Economic Zone (TASEZ). The academy’s presence highlights the critical relationship between industrial development and vocational training. As an automotive manufacturing hub anchored by the Ford Motor Company assembly plant in Silverton, Pretoria, TASEZ depends heavily on a steady supply of skilled artisans in fields such as mechatronics, toolmaking, robotics and advanced manufacturing. Delegates from the academy are attending the conference to: “By aligning training programmes with industry demand, our academy aims to ensure graduates are not only qualified but work-ready for the rapidly evolving automotive manufacturing environment,” says TASEZ Training Academy head, Meriam Malebo. Building the workforce of the future The WorldSkills conference arrives at a time when South Africa is seeking to accelerate economic growth through localisation, manufacturing expansion and infrastructure investment – sectors that rely heavily on skilled artisans. Events like this reinforce the idea that economic transformation is inseparable from skills development. By connecting training institutions, government and industry, the initiative aims to cultivate a generation of technicians, artisans and innovators capable of driving the country’s industrial future.

TASEZ calls on youth to ‘wake up’ to jobs and training opportunities

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) has issued a strong call to young people in Mamelodi, Eersterust and surrounding communities: opportunities exist, but initiative is essential. Speaking on Poort FM on 3 March 2026, TASEZ Stakeholder Engagement Manager Khutso Semetjane urged residents, particularly the youth, to actively pursue training and employment prospects linked to the automotive hub anchored by Ford Motor Company. 9 440 direct jobs, thousands more indirect Semetjane detailed the measurable economic impact of the special economic zone (SEZ) since its establishment. On the construction side alone, TASEZ has created over 6 000 jobs. Within the zone, more than 3 400 permanent jobs have been created by operational investor companies. “When you calculate indirect employment,” he explained, “for every job inside the SEZ, roughly three more are created outside.” That includes supply chain businesses such as paint manufacturers, logistics operators and component suppliers servicing vehicle production, including the Ford Ranger and Everest lines assembled in Tshwane. In total, the broader ecosystem linked to the SEZ supports more than 10 000 direct jobs and an estimated 40 000 indirect jobs. However, Semetjane acknowledged current pressures in the automotive sector, including job losses linked to global market adjustments. He confirmed that TASEZ has temporarily suspended its general labour database due to reduced hiring activity, but will reopen it as Phase 2 construction begins and new investors come on stream. 70% of construction jobs reserved for locals A key highlight of the interview was TASEZ’s commitment to local economic inclusion. For Phase 2 construction, 70% of jobs will be allocated to residents from surrounding communities, including Mamelodi, Eersterust, and Nellmapius. The remaining 30% will be sourced externally. Similar targets apply to permanent jobs, except where highly specialised skills are unavailable locally. “We are intentional about inclusion,” Semetjane said. “But we also have to protect the investment. Investors must have confidence in the environment.” Training that leads to work, not just certificates TASEZ has prioritised practical, industry-aligned training to ensure meaningful employment outcomes. Among the interventions are: Semetjane stressed that some programmes require minimum qualifications, often Grade 10, while others are open to participants without formal schooling. Importantly, he said, training is designed with an “exit plan” to connect graduates to real opportunities. In one recent example, a TLB (tractor, loader, backhoe) trainee secured employment within a month of completing training. The SEZ also works closely with TVET (technical and vocational education and training) colleges, including Tshwane North TVET College, from which 16 of the 23 current interns and graduates placed at TASEZ originate. A formal memorandum of understanding is being finalised. In addition, the TASEZ Training Academy bridges the gap between classroom learning and industry readiness, addressing investor concerns that some graduates lack practical competence. Youth readiness a growing concern While emphasising opportunity, Semetjane raised concerns about youth preparedness. He cited instances where job applicants: “There is a serious need for non-financial intervention,” he said. “We must engage youth about professionalism, research, digital literacy and self-development.” He encouraged matriculants to prioritise mathematics and science if they wish to enter the automotive or engineering sectors, noting that these subjects significantly improve competitiveness. Community access points TASEZ has appointed nine community liaison officers (CLOs), one for each ward in its catchment area, to serve as the first point of contact for employment and training enquiries. Semetjane urged community members to: CSI and community projects On corporate social investment, Semetjane said TASEZ facilitates partnerships between investors and local non-governmental organisations. However, he cautioned that due diligence is essential after instances of misrepresentation by some organisations. Community groups are encouraged to submit proposals well in advance, as investor approvals can take months. Let success be visible In closing, Semetjane made a heartfelt appeal to beneficiaries of SEZ opportunities. “When people succeed, they disappear,” he said. “We need those success stories to come back and inspire others. It builds confidence that this project is real.” As Phase 2 expansion begins, TASEZ leadership is positioning the zone not merely as an industrial hub but as a catalyst for inclusive economic transformation. “More investment means more jobs,” Semetjane concluded. “But we must act responsibly and seize the opportunity when it comes.”

From strategy to delivery: Gauteng’s response to the unemployment crisis

Addressing unemployment in Gauteng is about sustained, coordinated implementation that transforms growth into jobs, and jobs into dignity, stability, and hope, writes the MEC for Finance and Economic Development, Lebogang Maile. Unemployment remains one of South Africa’s most persistent and painful challenges. Nationally, the official rate eased to 31.4% in the fourth quarter of 2025 (down from 31.9% in the third quarter), according to the latest Statistics South Africa Quarterly Labour Force Survey. Yet Gauteng, the country’s economic engine, continues to grapple with a higher rate of 33.0%, with approximately 2.56 million residents unemployed, and recorded the largest provincial job losses of 54 000 in the same period. Even as the province shows a year-on-year employment increase of 102 000, these figures underscore that Gauteng is far from immune to the crisis. For years, the province has deployed a mix of supply- and demand-side interventions to tackle unemployment. While research has thoroughly documented its causes, scale, and consequences, the true measure of success is whether government action translates into real, sustained change in people’s lives. In his February 2025 State of the Province Address, Premier Panyaza Lesufi was unequivocal: unemployment ranks among Gauteng’s most urgent priorities. This challenge is intensified in 2026 by fiscal constraints, global economic uncertainty, volatile markets, and shifting geopolitical dynamics that impact investment, industrialisation, and trade. Against this backdrop, the adoption of the Gauteng City Region Economic Growth and Development Plan (2025–2030) in October 2025 marked a decisive shift toward evidence-driven, coordinated action. The plan serves as a strategic anchor for sustaining growth, enhancing competitiveness, and driving inclusive job creation. In the 2025/26 financial year, the Gauteng Department of Economic Development translated this strategy into tangible impact, placing unemployment at the heart of delivery. Interventions deliberately linked medium, small, and micro enterprise (MSME) development, investment mobilisation, tourism growth, and economic infrastructure. More than 2 300 MSMEs received non-financial support, while 2 128 accessed financial assistance worth R603-million through the Township Economic Partnership Fund, resulting in 11 833 jobs created, many in townships and local economies. These are not mere statistics; they represent restored livelihoods, strengthened community services, and more economically active neighbourhoods. Investment promotion added further momentum. The Gauteng Investment Conference secured R312.5-billion in pledges, with R61.2-billion already converted into active projects in manufacturing, logistics, and capital equipment sectors with strong employment multipliers. Tourism has complemented these efforts as a powerful absorber of labour, generating billions in direct spend and creating opportunities for youth, small businesses, and township enterprises. Looking ahead to 2026/27, the focus shifts decisively to scaling up impact. Priority infrastructure projects, action labs, township economic agencies, and MSME value-chain integration will drive labour-absorbing growth, crowd in private investment, and broaden economic participation. The message is clear: addressing unemployment in Gauteng is no longer about isolated interventions, but about sustained, coordinated implementation that transforms growth into jobs, and jobs into dignity, stability, and hope. This article was first published in the My Gauteng newsletter of February 2026.

TASEZ enterprise development driving MSME growth and job creation

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is intensifying its focus on enterprise and supplier development as a key lever for inclusive industrialisation, with focused training programmes, support for medium, small and micro enterprises (MSMEs), and value-chain integration already translating into jobs and business growth. Speaking in a radio interview on Poort FM on 24 February 2026, Senior Manager Enterprise Development, Sibusiso Khuzwayo, said the TASEZ enterprise and supplier development programme is designed to create practical opportunities for MSMEs across the automotive ecosystem, from construction and maintenance to long-term automotive black industrialist participation in the automotive industry. “Our enterprise and supplier development is fundamentally about creating opportunities for MSMEs within the automotive sector,” Khuzwayo said. “As a Special Economic Zone, we create opportunities during construction, during the operational phase and after market, importantly, through our tenants, including OEMs and tier-one suppliers within the Zone and other industries in the automotive sector, so that small businesses can participate in the full value chain.” Construction to operations Khuzwayo highlighted that TASEZ’s Phases 1 and 1a have already delivered significant employment impact, particularly during infrastructure construction. “During Phase 1, more than 3 500 jobs were created in construction, and thousands more people benefited directly from employment opportunities within the zone,” he said. “We also issued over 260 work packages to more than 220 MSMEs, which is critical because it spreads economic benefit beyond the industrial site.” The next phase, he explained, is ensuring MSMEs continue to benefit during construction in Phase 2, particularly through maintenance contracts, technical services and supplier opportunities linked to automotive production. “That is where sustainable job creation really happens, when MSMEs are integrated into ongoing operations,” he said. Bridging the gaps A major challenge facing small businesses entering the automotive sector is the gap between what they can produce and what large manufacturers require in terms of quality, compliance and consistency. “You may have an MSME that can produce a product, but the question is whether they can meet the standards required by the end user,” Khuzwayo said. “Our role is to bridge that gap through training, partnerships and mentorship so that MSMEs can reach the level required by industry.” This includes collaboration with industry bodies, development agencies and automotive support organisations to prepare businesses for tier-one supplier opportunities — a long-term ambition that includes developing black-owned component manufacturers. Training MSMEs and youth for future industries Skills development is central to the strategy. TASEZ has established a dedicated training academy aimed at aligning education outcomes with industry demand, working with universities, Technical and Vocational Education and Training (TVET) colleges and Schools of Specialisation. “We want to ensure that when investors come to South Africa, they do not say there are no skills available,” Khuzwayo said. “Our responsibility is to help create that skills pipeline, from school level through to specialised automotive training.” The initiative also targets young people early to spark interest in engineering, robotics and emerging automotive technologies, including electric vehicles (EVs). Last-Mile project demonstrates growth potential. One of the most successful interventions has been the “last-mile delivery” project, which trained around 100 young people in electric mobility logistics. Twenty participants received starter packs to launch delivery businesses using electric scooters. “The results have been encouraging,” Khuzwayo said. “Some participants have significantly increased their turnover – in one case from about R100 000 to over R1-million – showing the real impact of targeted support.” Beyond logistics, the project has created opportunities in other EV solutions, such as charging infrastructure and maintenance services, linking MSMEs to the green economy transition. Addressing finance barriers Access to working capital remains a major obstacle for emerging suppliers, particularly when they secure contracts but cannot finance delivery timelines. Khuzwayo said TASEZ is working to establish partnerships with funders that can provide fast, affordable financing backed by confirmed contracts from the zone. “We want MSMEs to access funding within days, not months, and at reasonable rates,” he said. “Otherwise, opportunities meant to empower them can actually leave them worse off.” Women, youth and persons with disabilities The enterprise and supplier development programme also prioritises inclusion, with targeted initiatives for women-owned enterprises, youth entrepreneurs and businesses led by persons with disabilities. “We cannot leave anyone behind,” Khuzwayo said. “We are partnering with organisations that specialise in these sectors so that we can identify opportunities and support businesses more effectively.” Preparing for Phase 2 opportunities With TASEZ preparing for further expansion, Khuzwayo encouraged businesses to ensure compliance documentation, certifications and collaboration partnerships are in place. “Opportunities will not come to you; you must prepare and go out to find them,” he said. “Engage with us, watch our platforms and get ready for Phase 2.” He added that while the zone is still developing, stakeholder feedback is essential. “Reshaping the future of automotive excellence does not mean we will not make mistakes,” he said. “We are open to engagement. Tell us what is working and what is not – that is how we improve.” Industrialisation with local impact TASEZ, Africa’s first automotive city, aims to position South Africa as a continental leader in automotive manufacturing while ensuring local communities benefit through jobs, skills and enterprise development. “What we are building is not just an industrial zone,” Khuzwayo said. “It is a platform for businesses to grow, for people to work and for transformation to become real.”

Budget 2026 signals infrastructure push and investment drive to unlock growth

By Mandla Mpangase South Africa’s 2026 national budget has positioned infrastructure investment, structural reform and private-sector participation as the central levers to accelerate economic growth, attract investment and create jobs – priorities that align closely with the country’s industrialisation agenda and the expansion of Special Economic Zones (SEZs) such as the Tshwane Automotive Special Economic Zone (TASEZ). Delivering the budget in Parliament on 25 February 2026, Finance Minister Enoch Godongwana said the country had reached “an important turning point” in public finance management, with debt stabilising for the first time in 17 years and fiscal credibility improving following South Africa’s removal from the Financial Action Task Force (FATF) grey list and its first credit-rating upgrade in 16 years. “These are signals of restored credibility. Of renewed resilience. And of a nation regaining its footing.” These improvements, he argued, create the foundation for investment-led growth. “The lesson is a simple but powerful one: steady structural reform and responsible public finances are the bedrock of a prosperous and more inclusive South Africa,” he told Parliament. Infrastructure at the centre of growth strategy For industrial zones and manufacturing hubs, the most significant announcement is the government’s commitment to spend more than R1-trillion on public-sector infrastructure over the medium term. Transport and logistics will receive the largest share, including: These investments are critical for SEZ competitiveness, where efficient logistics, reliable utilities and modern transport connections are key determinants of investor decisions. Government is also advancing a credit guarantee vehicle (CGV) with development partners to unlock large-scale investment in electricity transmission, an intervention expected to improve energy security for industrial users. Structural reforms to unlock investment The budget reinforced ongoing reforms under Operation Vulindlela, focusing on energy market liberalisation, logistics reform and improved local government performance – all longstanding constraints on industrial expansion. Reforms to municipal utilities, including a R27.7-billion performance-linked programme for electricity, water and sanitation services in metros such as Johannesburg, are particularly relevant for industrial zones dependent on reliable municipal infrastructure. National Treasury warned that poor municipal reinvestment practices have created massive infrastructure backlogs, including a R64-billion water backlog in Johannesburg alone. For industrial investors, improved municipal governance could reduce operational risk and improve investment attractiveness in urban economic nodes. Public-private partnerships and industrial opportunity Government signalled a renewed push for public-private partnerships (PPPs), with 63 projects currently in development and new municipal public-private partnership regulations expected by June 2026. Among the most advanced projects are border post upgrades aimed at improving regional trade flows – a priority for export-oriented manufacturing located in SEZs. The Budget Facility for Infrastructure (BFI) has already approved R21.9-billion for strategic projects, including Transnet rail corridor upgrades that will restore freight capacity for bulk commodities – an important signal for industrial supply chains. Industrialisation, data infrastructure and new-economy investment The budget also highlighted data centres and artificial intelligence infrastructure as emerging strategic investment areas, with the government exploring incentives to expand South Africa’s role as a regional technology hub. For zones like TASEZ, which are seeking to attract advanced manufacturing and technology-enabled production, this focus could open opportunities for new categories of investors beyond traditional automotive manufacturing. Trade reforms linked to the African Continental Free Trade Area (AfCFTA) were also emphasised, with National Treasury easing cross-border investment rules to position South Africa as a continental financial hub. Skills reform and workforce development A major policy shift announced in the budget is the planned restructuring of the national skills system, including the introduction of a dual-training model combining theoretical learning with workplace training. This approach mirrors international vocational systems and could directly support industrial employers seeking artisans, technicians and production workers – a key workforce requirement for SEZ-based manufacturers. The government acknowledged that existing SETA (Sector Education and Training Authority) and National Skills Fund outcomes have fallen short and pledged reforms to improve labour-market readiness. Support for small businesses and suppliers Measures to support small enterprises include: For industrial zones, these policies could strengthen supplier development ecosystems by improving the sustainability of small manufacturers and service providers integrated into SEZ value chains. Growth outlook and job creation challenge Despite reform progress, economic growth remains modest, projected at 1.6% in 2026 and averaging 1.8% over the medium term, rising to 2% by 2028. “These developments are unfolding within an unprecedented global trade environment characterised by persistent geopolitical tensions and shifting trade policies which are reshaping supply chains,” the Minister said. “In response, we need to diversify our trading portfolios, secure new markets, reduce vulnerability to external shocks and position ourselves to benefit from emerging global growth centres.” While the government has acknowledged that logistics inefficiencies, infrastructure weaknesses and agricultural disruptions continue to constrain growth, infrastructure-led investment remains the most credible pathway to sustainable job creation. “Our efforts to promote faster economic growth continue to revolve around the four pillars: These pillars are the foundation upon which inclusivity is built, and how we ensure that growth is faster.” Implications for TASEZ and SEZs The budget sends several positive signals for Special Economic Zones: While SEZs were not explicitly mentioned in the Budget, the policy direction reinforces their role as catalytic platforms for industrialisation, localisation and job creation. Fiscal stability as an investment signal Debt is expected to stabilise at 78.9% of GDP in 2025/26, then decline gradually, while the budget deficit narrows to 3.1% by 2027/28. For investors, these indicators are significant. Improved fiscal credibility lowers borrowing costs, reduces macroeconomic risk and strengthens confidence in long-term investment decisions, particularly for capital-intensive manufacturing projects typically located in SEZs. A cautious but investment-focused trajectory Although the 2026 budget does not promise rapid economic expansion, it does signal a more stable policy environment and a stronger commitment to infrastructure-led growth. For industrial development initiatives like TASEZ, the combination of infrastructure spending, structural reform and skills investment provides a supportive policy framework. As Minister Godongwana concluded, inclusive growth and fiscal sustainability must move together if South Africa is to reduce unemployment and build a more competitive economy.