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SONA 2026: A TASEZ wish list for South Africa’s industrial reset

By TASEZ CEO Dr Bheka Zulu As South Africa prepares for the 2026 State of the Nation Address by President Cyril Ramaphosa on 12 February 2026, the Tshwane Automotive Special Economic Zone (TASEZ) – Africa’s first automotive city – is hoping to see an emphasis being placed on putting manufacturing at the centre of the country’s economic strategy. Manufacturing remains one of the few sectors capable of creating large-scale employment, driving exports and anchoring technology transfer. Yet, despite its strategic importance, South Africa’s manufacturing sector continues to underperform relative to its potential, constrained by energy insecurity, logistics inefficiencies and policy uncertainty. Special Economic Zones (SEZs) are among the most effective tools available to reverse this trend. Zones such as TASEZ have demonstrated that targeted infrastructure, incentives and policy alignment can crowd in private investment and build globally competitive industrial clusters. SONA 2026 is an opportunity to scale this model. From a TASEZ perspective, there are several policy signals we would like to hear. First, a credible manufacturing growth pactSouth Africa needs a clear, time-bound commitment to manufacturing expansion, aligned with the Industrial Policy Framework, the Automotive Masterplan and the transition to new energy vehicles (NEVs). This should include measurable localisation and export targets, backed by regulatory certainty. Investors require predictability; industrial policy cannot shift with every political cycle. Second, a competitive SEZ incentive regimeSEZs compete globally. Countries such as Morocco, Vietnam and Egypt have built industrial bases by offering compelling fiscal incentives, streamlined customs processes and reliable infrastructure. South Africa must remain competitive. Enhanced incentives, faster approvals and dedicated industrial energy solutions would materially improve the country’s investment proposition. Third, explicit positioning of SEZs as anchors of the green and automotive transitionThe global automotive sector is undergoing a structural shift towards electrification, batteries and smart mobility. South Africa risks being locked out of future value chains if it does not act decisively. SEZs should be designated as production hubs for NEV (new energy vehicle) assembly, battery manufacturing and hydrogen-related industries, supported by targeted incentives and infrastructure. Fourth, localisation that delivers for MSMEsLocalisation policy must translate into real procurement opportunities for South African firms, particularly black-owned and township-based enterprises. Stronger localisation thresholds in public procurement, integrated with SEZ supplier development programmes, can help domestic firms integrate into global value chains rather than remaining peripheral participants. Fifth, infrastructure as an industrial enablerIndustrial policy without reliable infrastructure is aspirational at best. Manufacturing requires predictable electricity supply, efficient rail and port logistics, and high-quality digital connectivity. Commitments to stabilise industrial energy supply and modernise logistics networks would significantly improve South Africa’s industrial competitiveness. Sixth, blended finance to bring in private capitalIndustrial projects are capital-intensive and long-term. Development finance institutions can play a catalytic role by de-risking SEZ-based projects through blended finance structures. Public capital, concessional funding and private investment must be combined at scale to accelerate industrial development. Finally, a national skills pipeline for advanced manufacturingFuture factories require technicians, engineers and digital specialists. Coordinated partnerships between industry, TVET (Technical and Vocational Education and Training) colleges, universities and SEZs could position South Africa as a manufacturing talent hub on the continent. SONA 2026 comes at a defining moment. Global supply chains are fragmenting, the energy transition is reshaping trade patterns, and the African Continental Free Trade Area offers an unprecedented market for manufactured goods. South Africa has the industrial base, institutional capacity and geographic advantage to benefit – but only if policy ambition is matched by execution. SEZs such as TASEZ are platforms for a new economic narrative: one where South Africa builds, makes and exports at scale. If SONA 2026 delivers a bold and credible manufacturing and SEZ agenda, it could mark the beginning of a long-overdue industrial reset.

TASEZ CEO positions automotive city as engine for jobs, skills, and inclusive growth

News / By Tasez

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is emerging as one of South Africa’s most significant industrial infrastructure projects, with the potential to accelerate manufacturing growth, deepen localisation and drive inclusive economic participation, according to TASEZ CEO Dr Bheka Zulu. Speaking in an interview with Poort FM on Tuesday, 10 February 2026, Zulu said the special economic zone had become a critical growth engine for the City of Tshwane, Gauteng and the national economy, particularly through its role in supporting the automotive sector. “It brings an engine for growth, an engine for development and an engine for innovation,” Zulu said. “It has been a pillar of employment for the city, especially for communities such as Mamelodi and surrounding areas.” Boosting manufacturing and exports Zulu highlighted TASEZ’s role in supporting the expansion of automotive manufacturing, citing the Ford investment at the adjacent Silverton plant, which has increased production capacity and strengthened South Africa’s export footprint in more than 100 global markets. He said government and industry aim to raise South Africa’s share of global vehicle production to above 1%, which would require output of about 1.4 million vehicles annually. “Part of our role is to support OEMs that have been in this country for decades, and ensure increased capacity, sustainability and meaningful jobs,” he said. Africa’s first automotive city TASEZ markets itself as “Africa’s first automotive city,” a concept Zulu described as a fully integrated ecosystem combining industrial, residential and social infrastructure. “It’s about bringing industry closer to where people live and play,” he said, adding that the automotive city model includes training, services, affordable business infrastructure and incentives to support investors and workers. Zulu said the vision is to position Tshwane as a globally competitive automotive hub, leveraging South Africa’s long history in vehicle manufacturing and attracting new original equipment manufacturers (OEMs). Focus on meaningful jobs and STEM skills Zulu emphasised that job creation must be linked to skills development, particularly in science, technology, engineering and mathematics (STEM). “Meaningful jobs are permanent jobs that bring innovation and future development,” he said. TASEZ has established the TASEZ Academy to train and reskill young people from surrounding communities, working with sector education and training authorities (SETAs) and other institutions to align training with industry needs. SMME development and inclusive procurement Zulu said small, medium and micro enterprises (SMMEs) are central to TASEZ’s development model, with incubation, mentorship and enterprise supply development programmes designed to integrate local firms into the automotive value chain. He noted that TASEZ has set a minimum target of 30% procurement spend for SMMEs and aims for 60% township procurement in line with Gauteng’s Township Economic Development Act (TEDA) framework. “We’ve injected more than R2-billion into local SMMEs, and we are still growing,” he said, adding that procurement targets prioritise black-owned businesses, women, youth and people with disabilities. Driving transformation and localisation Zulu acknowledged that transformation in the automotive sector has been slow, particularly in localisation and black industrialist participation, but said TASEZ is guided by the South African Automotive Masterplan 2035. The sector aims to increase local content in vehicle production from around 30-40% to 60% and raise black participation in the industry, which remains below 3%. “It’s a competitive world, and we need all hands on deck, government, industry and communities, to reach these targets,” he said. Preparing for electric vehicles and new technologies Zulu said the global shift toward electric and new-energy vehicles presents both risks and opportunities for South Africa, urging industry and policymakers to adapt quickly. “The reality is that we need to wake up and embrace new energy vehicles, automation and green manufacturing,” he said, adding that TASEZ plans to roll out charging infrastructure and is seeking partners with innovative technologies. Message to youth and entrepreneurs In closing, Zulu encouraged young people and entrepreneurs to engage with TASEZ, bring innovative ideas and participate in skills programmes and supplier opportunities. “Don’t lose hope. We are your partner. Knock on our door with your ideas, and we will help you grow,” he said.

2025 – a year of resilience and recalibration

Thought leaders / By Tasez

It turns out that 2025 was a year that tested the Tshwane Automotive Special Economic Zone’s agility but also reaffirmed its strategic direction, writes acting executive of zone operations, Sibusiso Khuzwayo. As 2025 draws to a close, the Tshwane Automotive Special Economic Zone (TASEZ) continues to cement its position as one of South Africa’s leading special economic zones (SEZs) – an achievement built on resilience, collaboration, and a sharpened focus on sustainable industrialisation. Yet 2025 was anything but ordinary. The year placed TASEZ at the forefront of numerous conferences, industry engagements, and national conversations on automotive manufacturing, transformation, and economic development. These platforms allowed us to present TASEZ’s successes and the challenges we continue to navigate. They also reinforced the importance of capacitating TASEZ so that we not only meet our mandate but also deepen our impact on communities, stakeholders, and industry partners. Strong relationships Strengthening relationships with tenants was a key priority. Improved engagement has already laid the groundwork for future collaborations, particularly projects designed to uplift communities and micro, small, and medium enterprises (MSMEs). Industry-wide discussions on the future of the automotive sector, marked by technological shifts, supply chain pressures, and evolving investment landscapes, also prompted TASEZ to reassess its long-term strategy. We have had to rethink our tenant mix to ensure that TASEZ remains sustainable even as the automotive sector faces economic headwinds. Highlights of 2025 What stands out most during the year is a mix of organisational achievements and personal milestones. From an organisational perspective, TASEZ significantly expanded its collaboration footprint. Engagements with the National Skills Fund, universities, the CSIR (the Council for Scientific and Industrial Research), the AIDC (the Automotive Industry Development Centre), and the Gauteng Department of Economic Development strengthened the zone’s innovation ecosystem. These partnerships also supported TASEZ’s emerging e-mobility concept, positioning the SEZ as a future leader in new-energy technologies and skills development. As acting zone executive 2025 marked a number successful initiatives such as: These engagements helped us demonstrate what TASEZ does, why it matters, and how it can play an even bigger role in transforming the economy. More to do Despite the great strides already made, there is always more to do. First on the list is the need to further capacitate zone operations, ensuring the SEZ maintains its infrastructure, supports tenants effectively, and strengthens sustainability. Second is the need for improved collaboration across TASEZ’s internal departments. We cannot work in silos, but must support each other so that we deliver on our mandate in a way that benefits all stakeholders. Looking at TASEZ’s broader economic impact, it is clear that the organisation is making meaningful progress, particularly through Phase 2, which focuses strongly on supporting black industrialists. TASEZ has a tremendous opportunity to lead by bringing together funding institutions, OEMs, Tier 1 suppliers, aftermarket players, the National Empowerment Fund, and the Automotive Industry Transformation Fund. If we implement this effectively, it can serve as a model for other SEZs such as Dube TradePort, Richards Bay, and the AIDC. In addition, partnerships with the CSIR on research and innovation will further support TASEZ’s ambitions in industrialisation and advanced manufacturing. Looking forward From the perspective of zone operations, there are three key priorities for the coming year that will allow TASEZ to unlock more responsiveness, agility, and meaningful impact. Further capacitating departments to improve efficiency and service delivery; TASEZ is poised to play a transformative role in strengthening the South African economy by driving employment opportunities, empowering MSMEs, and equipping the workforce with future-ready skills. With its commitment to industrialisation, sustainability, and inclusive growth, Africa’s first automotive city continues to evolve as a catalyst for long-term national development – one that remains resilient even in the face of industry uncertainty.

Gauteng must ensure every rand derives tangible value and benefits for the people – MEC

News / By Tasez

By Mandla Mpangase Infrastructure investment plays a pivotal role in economic development, job creation and contributes directly to the quality of life of our citizens Gauteng MEC for Finance and Economic Development Lebogang Maile told the Gauteng Legislature during the tabling of the province’s medium-term policy statement and adjustment budget. Addressing the Legislature on 2 December 2025 Maile said that Gauteng must increase its investment in infrastructure and improve on robust infrastructure systems that support all provincial services including transport, health, education and social development. “The Provincial Treasury has already introduced various measures to improve on the efficient and effective use of financial resources allocated for infrastructure projects,” MEC Maile said, adding that Instruction Notes have been issued as promised with the aim of responding to the needs of the intended beneficiaries and to prevent wasteful expenditure. “When we fail to deliver projects on time, within budget and to specifications inclusive of legislative compliance, we compromise on value for money.” Funding constraints meant that the provincial government had to intensify its efforts to secure alternative resource financing models. MEC Maile noted: “The high level of dependence on the provincial fiscus to fund infrastructure projects must also be addressed through the strengthening of cost recovery and exploring alternative funding sources.” More focus was being placed on consequence management of poorly performing service providers. “All provincial departments and entities are encouraged to work with the Provincial Treasury and other relevant stakeholders to prepare bankable applications for infrastructure projects that qualify for Budget Infrastructure Fund funding.” One key measure being taken was to focus on public-private partnerships as a vehicle to attract additional resources for infrastructure projects. Maile pointed out that Gauteng’s economic output in 2024 had reached R2.4-trillion in 2024, making the province the country’s economic hub, responsible for R33 out of every R100 the country’s economy produces. Gauteng, with KwaZulu-Natal, and Western Cape, contributes approximately 63% of South Africa’s GDP. “However, we understand that the economy of this province must record far higher growth rates to lift South Africa’s GDP, accelerate the creation of much needed jobs and reduce poverty,” Maile said. Economic overview It was against this backdrop that the provincial executive council recently approved the Gauteng City Region Economic Growth and Development Plan. The plan is intended to contribute to the three strategic priorities of inclusive economic growth and job creation; improved living conditions and enhanced health and well-being; and a capable, ethical, and developmental state. The strategy is anchored on 10 pillars: The cross-cutting pillars of the strategy are innovation and digital transformation; women, youth and people with disabilities; township procurement; and research and development. Gauteng City Region Economic Growth and Development Plan is also supported by 12 sector master plans to enable policies and strategies, including the Township Economy Development Act (and the Township Economy Revitalisation Strategy), the Informal Business Upliftment Strategy, the Medium, Small and Micro Enterprises Strategy, the Trade and Investment Strategy and Green Hydrogen. MEC Maile told the Legislature that the Department of Economic Development is currently hosting several sector roundtables which will culminate in the establishment of the 12 sector-specific action labs. “These action labs will act as multistakeholder collaborative and solution-oriented platforms to enhance the effectiveness and implementation of the strategy. “The effective implementation of this strategy will set Gauteng on a positive economic growth path and create much needed jobs, amid global headwinds and domestic economic challenges,” Maile said. “We are working in partnership with all key stakeholders to accelerate efforts to facilitate economic infrastructure development; trade and investment promotion; improve the ease of doing business; and empower micro, small and medium enterprises, particularly those owned by previously disadvantaged groups.” This will go a long way in enabling the province to close the current output gap, enhance production and significantly increase our participation in international markets, he explained. The MEC tabled the Medium-Term Budget Policy Statement 2025, the Adjusted Estimates of Provincial Revenue and Expenditure 2025, and the Adjusted Estimates of Capital Expenditure 2025 for consideration. A responsible balance “The national fiscal framework is aimed at ensuring a responsible balance between government spending, tax revenue, and borrowing to prevent unsustainable debt to create a stable environment for long-term growth, job creation and investment financing of public services,” Maile said. “As the provincial government, our fiscal trajectory reflects these national issues. That is why our focus is on debt management, revenue strategies, and spending restraint, while seeking alternative funding sources to meet increasing public service demands amidst weak economic performance.” The provincial five-year budget approach introduced in the previous financial year will be continued for the 2026 Medium-Term Expenditure Framework (MTEF) Budget with the aim of addressing high-level provincial risks and stabilising public finances. The principles guiding the 2026 MTEF Budget include: “The goal of these principles is to stabilise provincial public finances by maintaining fiscal discipline and credibility and ensure impactful service delivery.” Adustments Budget The 2025/26 Adjustments Budget addresses pressures in frontline services, as a means of equipping the Gauteng Provincial Government to continue responding to the provincial imperatives underpinning the 2024 – 2029 MTDP and the G13 priorities. The total adjustment is R3.3-billion which includes the rollovers, national and provincial funding. As part of this Adjustments Budget, an additional R2.2-billion has been allocated to provincial departments as follows: “As we have said before, we are operating in a difficult environment in which we must find ways to strike a balance between the growing demand for public services and the fiscally constrained economy. We are addressing Gauteng’s fiscal trajectory through a combination of active debt management strategies and spending restraint.” The MEC also used the occasion to launch the pilot phase of TendaSwift – the province’s new e-procurement platform that will automate and digitise the entire tender management process in the province. Reiterating the message of Finance Minister Enoch Godongwana during his medium-term budget policy statement speech, Maile concluded: “‘We are choosing growth, stability, and reform’. I would like to affirm that as the Gauteng Provincial Government, we remain

How South Africa’s G20 Presidency can accelerate industrial growth through TASEZ

Thought leaders / By Tasez

When South Africa welcomes the world to the G20 Leaders’ Summit this month, our nation will experience one of the most profound moments of global visibility since the country’s dawn of democracy, writes the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu. As heads of state, global CEOs, investors, and development partners converge on our shores for the G20 Leaders’ Summit on 22 and 23 November 2025, the world’s gaze will fall not only on our political leadership but on our economic capability, our industrial resilience, and our readiness to take our place in a rapidly shifting global economy. For those of us tasked with building South Africa’s next-generation industrial platforms, this moment is far more than a diplomatic milestone. It is an opportunity to reshape the country’s industrial trajectory for decades to come. And for the Tshwane Automotive Special Economic Zone (TASEZ), it is a chance to demonstrate that South Africa can compete, innovate, and lead in one of the world’s most dynamic sectors: automotive manufacturing. South Africa in the global spotlight The G20 is not just a gathering of 20 world leaders. It is a year-long platform where global investment sentiment is shaped, where development financing agendas are debated, and where emerging markets like South Africa position themselves as credible partners in the global value chain. It has already triggered accelerated investments in infrastructure, logistics, and city improvement projects, particularly in Gauteng. This matters for industrial zones like TASEZ. Better roads, more reliable energy, and upgraded transport networks are the lifeblood of manufacturing competitiveness. But the physical changes are only part of the story. The more significant shift is reputational. A successful G20 presidency can strengthen investor confidence, deepen trust in our economic institutions, and position South Africa as a stable, future-oriented industrial hub. That alone makes this moment essential for TASEZ and the broader automotive sector. Global industrial priorities What excites me is how closely South Africa’s G20 priorities align with TASEZ’s mission. The 2025 agenda focused on: These are not abstract ideas; they cut to the heart of the automotive industry’s transformation. As highlighted by the recent New Energy Summit held in Gauteng in October 2025, global value chains are pivoting to green mobility, clean manufacturing, and Africa’s integration into supply networks. TASEZ is uniquely positioned in this transition. We are already home to one of Africa’s most dynamic automotive production ecosystems, and we are preparing for a future that includes electric mobility, deeper localisation, and expanded supplier development. If South Africa leverages its G20 presidency effectively, we can secure the policy tools, partnerships, and financing mechanisms needed to accelerate this transition. Showcasing South Africa’s successes The world will not judge us by speeches alone. They will judge us by what we build. This is why TASEZ intends to use the G20 window to demonstrate what coordinated public–private investment can achieve. As the fastest-growing automotive special economic zone (SEZ) on the continent, we have a compelling story to tell — one of job creation, skills development, township inclusion, supplier growth, and industrial expansion. We should be bold in inviting foreign delegations, development finance institutions, and global OEMs to see the zone firsthand. Site visits, technical tours, and bilateral industry roundtables can turn interest into investment. The G20 gives us a once-in-a-generation platform to do this at scale. The G20 Leaders’ Summit will bring renewed attention to Africa’s role in the global economy. For TASEZ, this is an opportunity to expand its influence beyond South Africa’s borders. Through stronger relationships with the Southern African Development Community (SADC) and African Union partners, we can position TASEZ as a catalyst for regional automotive value chains, a future where components made in Botswana, Mozambique, Zambia, or Zimbabwe flow seamlessly into assembly lines in Tshwane. More than symbolic South Africa must convert visibility into tangible improvements in industrial competitiveness. We must guard against the tendency to treat major summits as symbolic rather than strategic. Investment is not secured by banners, speeches, or social media clicks. It is secured by credibility, efficiency, transparency, and delivery. For TASEZ, this means: The 2025 G20 Summit is a strategic opportunity for South Africa to reposition itself as the continent’s industrial leader, providing a platform for government, business, and development partners to act with unity. For TASEZ, it is a chance to amplify what we already know: that South Africa can build globally competitive manufacturing hubs; that our people can produce world-class automotive products; and that, with the right partnerships, we can transition into the mobility future with confidence. The world is coming to South Africa. Will we use this moment to shape our industrial destiny? We at TASEZ intend to do just that.

NEV Summit sets clear direction for South Africa’s green mobility future

News / By Tasez

By Mandla Mpangase Day 1 of the New Energy Vehicles Summit provided much to think about. The opening day of the inaugural New Energy Vehicle (NEV) Summit in Midrand proffered a compelling combination of insights, inspiration and strategic direction, positioning South Africa, and Gauteng in particular, as a frontrunner in Africa’s transition to sustainable mobility. From the science behind hydrogen and battery-powered vehicles to the policies shaping South Africa’s green mobility roadmap, Day 1 covered a broad spectrum of issues. Delegates explored global trends, drew lessons from international case studies, including from China, and examined local readiness across policy, skills, and industry. In his summary remarks on the day, the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu, noted that the discussions were “not just about dialogue, but about direction”. Every presentation, he said, “was the emergence of a shared vision; one that sees South Africa transitioning into sustainable mobility and industrial renewal”. Gauteng, as the country’s industrial heartland, was described as playing a strategic role in the future of the automotive ecosystem, leveraging its strong logistics infrastructure and manufacturing base to attract investment and drive innovation. “Today affirmed South Africa’s readiness to lead Africa’s green mobility future,” Dr Zulu added. “The key message was about collaboration – between government, industry, academia, and innovators – to create jobs, empower small, medium and micro enterprises, and localise technology.” Dr Zulu likened this collaboration to a relay race, where each participant contributes their unique strength at different stages: “It’s not about competition, but coordination, knowing when and how to pass the baton to build momentum together.” Throughout the day, recurring themes included industrial transformation, skills development, and ensuring that technology and labour advance together for a just transition. Speakers also emphasised policy clarity and investment confidence, highlighting growing optimism in the local NEV manufacturing sector. The province called for “urban-driven industrialisation” that integrates energy policy, investment frameworks, and urban planning, aligning Gauteng’s innovation and logistics strengths to create a globally competitive green automotive hub. As the day concluded, participants agreed that the NEV revolution “is no longer a possibility, but a present reality”, and that South Africa’s leadership must act boldly and decisively to harmonise policy, infrastructure, and workforce development. “Our NEV transition is not a single-sector effort – it’s a national movement,” Dr Zulu emphasised. “We must plan boldly, invest bravely, and move together to make Gauteng cleaner, smarter, greener, and more connected.”

Gauteng takes the wheel: Driving Africa’s NEV future

Thought leaders / By Tasez

South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity, and the economic heartland of the country must take the lead in embracing New Energy Vehicles as a core economic sector for the country – and the rest of Africa, writes Lebogang Maile, Gauteng MEC for Finance and Economic Development. Gauteng is stepping up to lead South Africa and Africa into the new-energy vehicle (NEV) era. The province, already the country’s economic and industrial centre, is positioning itself as the continent’s NEV hub. The province hosted its inaugural NEV Summit on 22–23 October 2025, during the country’s Transport Month, under the auspices of the Gauteng Growth and Development Agency, along with the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity. Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility. The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles. The sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. In addition, global markets, particularly the European Union, are tightening carbon regulations. For South Africa to keep exporting vehicles and stay competitive, it must move fast to build an industry that produces low- and zero-emission cars. Laying the foundation The transition is backed by strong policy frameworks. The South African Automotive Master Plan 2035 (SAAM 2035) sets clear goals for increasing local content, boosting exports, and creating inclusive growth. The government’s White Paper on electric vehicles, approved at the end of 2023, provides a roadmap for building the NEV ecosystem from production and charging infrastructure to skills development and consumer incentives. Although the paper references electric vehicles, South Africa must take into account other green initiatives, such as hydrogen and battery. The policy direction is clear – our job is to make sure Gauteng becomes the first mover. The NEV transition is about jobs, skills, and industrialisation, not just greener cars. We are ready to lead Africa in this journey. Why Gauteng? South Africa’s economic hub has all the right ingredients: skilled workers, advanced manufacturing infrastructure, financial and logistics networks, and a strong automotive heritage. Ford, based in the City of Tshwane, has been in South Africa for over a century. Gauteng’s existing automotive value chain makes it the natural home for Africa’s NEV future. The province already hosts major original equipment manufacturers like BMW, Ford, and Nissan, and supplier networks that can pivot to battery, electronics, and component manufacturing. We already have the backbone, from vehicle assemblers to tiered suppliers. What we are doing now is aligning that value chain with new technologies, from battery assembly to software integration. The transition is not just about attracting investment; it’s about future-proofing Gauteng’s manufacturing economy. Turning policy into factories Gauteng is now focused on turning national policy into tangible projects. The Automotive Investment Scheme (AIS) and EV production incentives announced by the Department of Trade, Industry and Competition (the dtic), including a 150% investment allowance for qualifying projects, are key tools to make that happen. We are working closely with the dtic and industry stakeholders to streamline approvals and remove red tape. Investors do not want promises; they want certainty. Gauteng is offering that – a clear pathway from policy to plant. But we are also well aware of the challenges we face, from electricity reliability and logistics to the high costs of new technologies. One of the key projects we have put in place to overcome these is the creation of a dedicated automotive hub in the City of Tshwane, with stable power, fast-tracked permitting, and shared testing and recycling facilities to lower entry barriers for manufacturers. Building demand and inclusion A vibrant NEV industry also needs a domestic market, and Gauteng is exploring ways to stimulate demand through public fleet electrification, taxi modernisation programmes, and municipal procurement. Demand creation will be critical to attracting more investors. OEMs and suppliers want to see that South Africa is serious about NEVs – that there is a real market for these vehicles. If we in government lead by example through fleet conversion, others will follow. Gauteng has the opportunity to set that example for the rest of the continent. Beyond manufacturing, Gauteng’s NEV strategy emphasises skills development and inclusion. The transition is being designed to create opportunities for black-owned medium, small, and micro enterprises, youth, and women entrepreneurs in new parts of the value chain, from charging infrastructure to digital mobility services. A turning point for the economy The upcoming NEV Summit is expected to produce a clear action plan: identifying priority sites, announcing anchor investors, setting timelines for disbursing incentives, and mapping out power and logistics upgrades. This summit was not just about speeches; it was about signatures. We want commitments, timelines, and projects that will create jobs and secure Gauteng’s place at the centre of Africa’s new energy future. If Gauteng can convert its strategic intent into action, the province will not only revitalise South Africa’s automotive manufacturing base but also anchor the continent’s NEV revolution. The race to lead Africa’s green mobility future has begun, and Gauteng plans to be first across the line.

From policy to action: Now is the time for South Africa to embrace new energy vehicles

Thought leaders / By Tasez

South Africa must move from policy to action as a matter of urgency, aligning incentives, infrastructure, skills, and industrial coordination around new energy vehicles, writes the CEO of Tshwane Automotive Special Economic Zone, Dr Bheka Zulu. South Africa’s automotive industry stands at a turning point. The global race toward low- and zero-emission mobility is accelerating, and for a country whose automotive exports hinge on access to the European market, embracing new energy vehicles (NEVs) is no longer optional, it has become an industrial necessity. The Electric Vehicle (EV) White Paper and the South African Automotive Master Plan 2035 (SAAM) together lay a strong policy and strategic foundation. The challenge now is moving from intent to implementation. The country has a clear opportunity to build an inclusive, competitive, and sustainable automotive industry powered by innovation, ready for a net-zero world. Transformation is a must The global automotive landscape is undergoing a profound transformation, driven by the urgency to reduce carbon emissions and achieve net-zero goals. The European Union’s carbon neutrality policies are among the most influential in this shift, setting strict timelines for phasing out internal combustion engine (ICE) vehicles and promoting zero- and low emission alternatives. The EU aims to be climate-neutral by 2050. The objective is to ensure an economy with net-zero greenhouse emissions. For South Africa, this presents both a challenge and an opportunity. The EU remains South Africa’s largest export market for vehicles, accounting for the bulk of automotive exports. A significant 68,7% of light vehicle production was exported in 2024, with three out of every four cars headed to Europe. This means that the EU’s green regulations will directly determine South Africa’s ability to continue trading competitively in this critical sector. Vehicles built in Gauteng and other parts of the country will increasingly need to meet low- or zero-emission standards to remain eligible for export. Transitioning now is not optional, it is essential. Early investment in NEV production, local battery manufacturing, and supporting infrastructure such as charging networks will safeguard South Africa’s market access, maintain its global competitiveness, and create a foundation for long-term industrial sustainability. Policy meets opportunity The EV White Paper charts a managed transition from internal combustion engines to cleaner technologies, ensuring decarbonisation does not lead to deindustrialisation. It sets out steps to localise EV production, develop charging infrastructure, and build skills for the future. The White Paper allows for a managed transition, setting out a number of processes: It has identified 10 actions required to build an EV production ecosystem, including the beneficiation of critical minerals, battery reuse and refurbishment, regulatory alignment, and incentives for localisation. Complementing it, the South African Automotive Master Plan (SAAM 2035) envisions South Africa increasing local content in vehicle manufacturing, expanding exports, and doubling employment by 2035. SAAM 2035 sets out six focus areas: optimising the local market, developing the regional market, localisation, infrastructure development, industry transformation, and technology a skills development. Targets include: Together, the EV White Paper and SAAM 2035 frame a just, inclusive transition that can preserve and grow the country’s industrial base. Driving implementation Turning these policies into tangible outcomes depends on strong institutions. In Gauteng, the Gauteng Growth and Development Agency (GGDA), its subsidiary the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ) are taking the lead. TASEZ, Africa’s first automotive city, is positioning itself as a hub for future-focused investment, where manufacturers and suppliers can plug into purpose-built infrastructure, training, and incentives. The AIDC, through its learning centres and supplier parks, is aligning skills and enterprise development with EV technologies. Together, these institutions are turning national ambition into provincial action. South Africa must act quickly to overcome power constraints, develop a local battery value chain, and align incentives to attract NEV and component investment. Global markets are already shifting and delays could cost South Africa export access, investor confidence, and thousands of jobs. A call to lead Africa’s NEV revolution The upcoming 2025 NEV Summit, hosted by GGDA, AIDC, and TASEZ on 22-23 October 2025 at the Gallagher Convention Centre, represents the next phase: uniting government, industry, and investors to accelerate implementation. From policy to action, South Africa’s NEV future depends on decisive execution.

Future of auto industry at centre of national discourse – MEC Maile

News / By Tasez

By Mandla Mpangase The discussion on the importance of new energy vehicles is taking place at a critical time in South Africa, where the future of the automotive industry is at the centre of national discourse, Gauteng MEC for Economic Development and Finance Lebogang Maile told the New Energy Vehicles Summit in Midrand today. The summit comes at a time when Gauteng is positioning itself as the automotive industrial hub for Africa, leveraging its existing automotive base, advanced logistics, and skills ecosystem. Critical to this positioning is the need to embrace the revolution that is the new energy vehicles (NEVs). Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility in line with global decarbonisation imperatives and the South African Automotive Masterplan 2035. “The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles,” Maile said, adding that on the manufacturing side, Original Equipment Manufacturers (OEMs) also face mounting challenges. South Africa’s automotive sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. Key sector “The South African automotive industry is a cornerstone of the economy and contributes 22.6% to total domestic manufacturing output. It also directly supports over 110 000 formal sector jobs – a significant number in an economy that is battling with the creation of sustainable employment.” The MEC noted that a few months ago, naamsa (the Automotive Business Council) noted that the tariffs, and the broader uncertainty in our trade relations with the United States strike at the heart of South Africa’s industrialisation agenda and threaten future investment in high-value manufacturing. Mercedes Benz in East London, for example, exports at least 90% of its vehicles to the United States, making evident the impact of such an uncertain economic climate on the East London Special Economic Zone. “Tariffs have had a severe impact on South Africa’s automotive industry, leading to a sharp drop in exports to the United States, job losses, company closures, and reduced GDP contribution of the automotive sector.” Vehicle exports to the United States have fallen drastically, with one report noting an 82% drop in the first half of 2025 compared to the previous year. Challenges “The industry has also experienced layoffs and job losses, with thousands of positions under threat due to companies losing contracts and reducing production,” the MEC said, adding that at least 12 company closures have been linked to these pressures, impacting the component manufacturing sector and its over 80 000 employees. Communities like those in East London, and the broader Eastern Cape, which are heavily dependent on the automotive sector, are at risk of economic destabilisation. Beyond job losses, the National Union of Metal Workers of South Africa (NUMSA) has also highlighted the risk of short-time that has been introduced at 26 companies in the Eastern Cape – many based in Gqeberha. “Various economists have identified three structural challenges that are currently confronting the automotive industry, specifically, navigating South Africa’s exposure to tariff barriers in the United States, as outlined, the danger of dumping, and adapting to the global shift towards new energy vehicles,” said Maile. However, he noted, while these are real challenges with far-reaching implications, critical interventions can transform them into opportunities – particularly in relation to new energy vehicles. “New energy vehicles are crucial for South Africa’s future as they offer significant economic and environmental benefits, including reducing greenhouse gas emissions and lowering fuel costs, while supporting industrial growth and job creation through local manufacturing and infrastructure development.” New energy vehicles produce significantly fewer greenhouse gases and pollutants compared to internal combustion engine vehicles, which can help in combating urban air pollution and climate change. The place of new energy vehicles is also clear, with their lower operating costs and potential for industrial growth, the MEC said: “Electricity is cheaper than petrol and diesel, and energy vehicles have fewer moving parts, reducing overall maintenance costs.” Additionally, as South Africa’s automotive industry contributes over 4% to GDP and 12.5% to exports, transitioning to new energy vehicles can safeguard this sector’s global competitiveness, especially with European Union bans on internal combustion engine vehicles by 2035. New energy vehicles are also key to a Just Energy Transition, reducing reliance on fossil fuels, which can help reduce reliance on imported fossil fuels that are increasingly subject to price volatility. Recognising potential NEVs could position South Africa to become a hub for regional battery production and new energy vehicle technology. Recognising this potential, the national government has developed policies covering for NEV production, infrastructure, and skills development. “As a result of this intervention, a 150% tax rebate for new energy vehicle production starts in March 2026, with over R1-billion having recently been allocated to support local new energy vehicle and battery manufacturing.” The MEC said that such investments in local battery production address the salient challenge that new energy vehicles pose – mainly that they are significantly more expensive than internal combustion energy vehicles due to import duties and more importantly, a lack of local battery production. A strategy is currently being finalised to secure supply chains for critical minerals like cobalt, lithium, and nickel, which are essential for battery production. “This is part of a larger plan to beneficiate these materials locally instead of exporting raw forms.” This is in alignment with the Gauteng’s mineral beneficiation strategy that focuses on adding value to raw materials by transforming them into higher-value products, with a key role in refining precious and base metals. Developing local battery manufacturing capacity for NEVs, and mineral beneficiation broadly, will address economic diversification, ensuring that the province moves beyond raw material extraction to creating a more value-added mineral economy and to retain more wealth within the province and the country broadly.

Gauteng gears up for green revolution as New Energy Vehicle Summit kicks off

News / By Tasez

By Mandla Mpangase The inaugural New Energy Vehicle Summit is taking place this week in Gauteng, drawing attention to the importance and urgency of moving to green mobility within South Africa’s automotive industry. The landmark event, hosted by the Gauteng Growth and Development Agency (GGDA), the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ), will assess the progress of the transition to new energy vehicles (NEVs), investigate possible partnerships, and plan practical strategies to accelerate the creation of a competitive local NEV ecosystem. Speaking ahead of the summit on Channel Africa’s Africa Update with Lulu Gaboo, the CEO of TASEZ, Dr Bheka Zulu, said the gathering marks more than just summit. “It’s a statement that Gauteng, as the heart of South Africa’s automotive sector, is ready to lead Africa’s technological shift,” said Dr Zulu. “With more than 60% of the country’s vehicles produced in this province, we are asserting South Africa’s leadership in the continent’s new energy vehicle transition.” Zulu said South Africa is no longer a “passenger” in the global race toward electric mobility. Since the release of the EV White Paper in 2023, the focus has been on positioning the country for global competitiveness through research, innovation, and partnerships. “We’re gearing up for the race on the global EV track,” he noted. “Our goal is to attract international investors, harmonise trade standards across African markets, and promote regional value chains that make South Africa the hub for sub-assemblies and NEV components.” Dr Zulu emphasised that the NEV Summit, taking place at the Gallagher Convention Centre on 22-23 October, will focus on building consensus between industry, labour, and government to develop a balanced roadmap for transformation, one that prioritises both ambition and pragmatism. Policy alignment Asked about policy readiness, Dr Zulu said South Africa already has the right frameworks in place, but faster implementation and targeted incentives are needed. “The road is paved; now we need the green light to move faster,” he said. “We must streamline tax incentives and develop charging infrastructure that supports local manufacturing and adoption.” The NEV shift represents a major opportunity for deepening local supply chains, creating high-value jobs, and transforming South Africa into the main exporter of NEV components across the continent. The South African Automotive Masterplan 2035 (SAAM 2035) is a key enabler of the transition, with its goals to increase local content from 40% to 60% and to double employment in the sector. It is supported by the Electric Vehicles White Paper, that was published at the end of 2023. “This is not just about swapping the engine for a battery,” he said. “It’s about creating new high-value jobs and ensuring that no one is left behind, including workers, black industrialists, and small suppliers.” At the heart of the TASEZ strategy is inclusivity, with initiatives to upskill the existing workforce, mentor small component manufacturers, and facilitate partnerships between local suppliers and global OEMs. Collaboration is vital Dr Zulu stressed that while Original Equipment Manufacturers (OEMs) like Ford play a critical role, the NEV opportunity is open to new entrants and innovators. “The NEV space is for everyone,” he said. “We want to see new black industrialists and emerging OEMs entering the field. This is the transformation we’ve been driving.” Although reliable energy and charging infrastructure remain a challenge, partnerships are being developed to roll out a national charging network and invest in renewable solutions. “We are identifying key sites and collaborating with private partners to ensure charging infrastructure keeps pace with NEV adoption,” he said. With the European Union’s zero-emission and carbon border adjustment policies set to take effect by 2035, dr Zulu said South Africa must align its timelines and environmental standards with international expectations. “We’re adapting our manufacturing processes to reduce coal-based energy use and increase solar, gas, and hydrogen integration,” he said. “Our ambition is to match the EU’s climate neutrality goals and maintain export competitiveness.” Looking ahead to 2035, Dr Zulu concluded: “We want NEVs to form a significant part of local production, deepen component manufacturing, and make South Africa the hub of NEV exports to Africa and beyond,” he said. “Most importantly, we want this transition to create jobs, skills, and shared prosperity.”