Dr Bheka Zulu Archives

Kenyan delegation visits TASEZ to study South Africa’s automotive industrialisation success

By Mandla Mpangase A high-level Kenyan delegation accompanying President William Ruto on his state visit to South Africa visited the Tshwane Automotive Special Economic Zone (TASEZ) on 5 June 2026 to gain first-hand insight into one of the continent’s most successful industrial development projects. The Kenyan delegation was led by the cabinet secretary for investments, trade and industry, Lee Kinyanjui. The visit formed part of a broader programme aimed at deepening economic cooperation between South Africa and Kenya, with both countries seeking to strengthen trade, investment and industrialisation under the African Continental Free Trade Area (AfCFTA). During the state visit, Presidents Cyril Ramaphosa and William Ruto reaffirmed their commitment to expanding economic ties and signed several agreements intended to enhance trade, skills development, transport cooperation and regional integration. For the Kenyan delegation, TASEZ offered a practical example of how strategic industrial policy, public-private collaboration and targeted infrastructure investment can be used to establish a globally competitive manufacturing hub from the ground up. Located adjacent to Ford Motor Company’s Silverton Assembly Plant in Tshwane, TASEZ has emerged as the flagship of South Africa’s Special Economic Zone (SEZ) programme. Established to deepen localisation in the automotive sector, attract investment and create jobs, the zone has become a model for industrial development, drawing billions of rands in investment and creating thousands of employment opportunities while positioning South Africa as a major automotive manufacturing base on the continent. The Kenyan delegation’s interest in TASEZ reflects growing efforts across Africa to move beyond the export of raw materials and build value-added manufacturing industries capable of creating jobs and driving economic growth. TASEZ CEO Dr Bheka Zulu said the visit demonstrated the growing importance of SEZs as catalysts for industrialisation and regional economic integration. “Kenya’s interest in understanding the TASEZ journey is significant because it speaks to a broader African ambition to industrialise, create jobs and strengthen regional value chains. “What we have achieved here shows that with a clear vision, strong partnerships and sustained investment, it is possible to build a globally competitive automotive manufacturing ecosystem from scratch,” said Zulu. He noted that SEZs have become increasingly important instruments for attracting investment and supporting industrial development across Africa. “South Africa’s 12 SEZs collectively attracted R31.58-billion worth of investment since inception in the year 2000,” TASEZ executive for business development, Msokoli Ntombana, noted. “They have shown a net growth of R17.067-billion in the value of operational investments over the seven-year period starting from 2018/19FY, which has led to an additional 28 112 direct jobs being created, demonstrating the impact such zones can have on economic growth and employment,” Ntombana, added. The visit also provided an opportunity for discussions on the practical challenges and lessons associated with developing an automotive manufacturing hub, including infrastructure planning, investor attraction, supplier development, skills training and governance. As South Africa and Kenya seek to strengthen their strategic partnership, industrial cooperation is expected to become an increasingly important area of collaboration. Kenya has identified manufacturing as a key pillar of its economic development agenda, while South Africa continues to leverage its established automotive sector to drive exports, investment and industrial growth. The visit to TASEZ underscored a shared recognition that Africa’s future economic growth will depend not only on expanding trade between countries but also on building productive industrial capacity capable of supplying regional and global markets. For the Kenyan delegation, TASEZ was a case study in how targeted industrial development can transform a vision into a functioning manufacturing ecosystem, creating jobs, attracting investment and contributing to Africa’s broader industrialisation agenda.

Parliamentary committee to visit TASEZ as focus turns to jobs, investment and growth

News / By Tasez

By Mandla Mpangase The parliamentary select committee on economic development and trade will visit the Tshwane Automotive Special Economic Zone (TASEZ) on Thursday, 4 June 2026, to assess the impact the industrial hub is having on investment, job creation and economic growth. The visit forms part of Parliament’s oversight role and will allow committee members to see first-hand how one of South Africa’s flagship special economic zones is contributing to industrialisation and manufacturing growth. During the visit, the committee will receive updates on TASEZ’s performance, including progress on investment commitments, infrastructure development, and the zone’s contribution to the automotive sector and broader regional economy. Members will also examine how the special economic zone is creating employment opportunities, supporting skills development and delivering benefits to surrounding communities. Discussions will cover infrastructure, governance, and the operating environment within the zone, as well as the experiences of investors and tenants. The committee is expected to engage with TASEZ management, representatives from the Gauteng Department of Economic Development, the City of Tshwane, and stakeholders from the automotive and manufacturing sectors. Feedback from investors operating within the zone will also form an important part of the visit, providing insight into South Africa’s competitiveness as an investment destination and the challenges and opportunities facing manufacturers. TASEZ CEO Dr Bheka Zulu said the visit comes at an important time for South Africa’s industrial development ambitions. “Quality infrastructure remains one of the most important ingredients for attracting investment and supporting industrial growth. Businesses need certainty, efficiency, and reliable services to compete globally. Infrastructure development is therefore about much more than roads and buildings – it creates the foundation for economic activity, job creation and long-term growth,” said Zulu. He said continued investment in the automotive sector was critical to strengthening South Africa’s manufacturing base. “The automotive industry remains one of the country’s most important economic sectors, supporting thousands of jobs and contributing significantly to exports and skills development. Every investment in automotive manufacturing creates opportunities throughout the value chain, from component manufacturers and logistics providers to small businesses and local communities.” Zulu added that TASEZ was established to create an environment where manufacturers can invest and expand with confidence, helping South Africa advance its industrialisation and localisation goals. The committee’s findings from the visit are expected to contribute to future recommendations on strengthening South Africa’s special economic zone programme. Since its establishment, TASEZ has become a key driver of automotive investment in Gauteng, helping attract billions of rand in investment while supporting manufacturing growth, skills development and employment creation.

Ramokgopa visits TASEZ as Gauteng pushes industrial growth and investment

News / By Tasez

By Mandla Mpangase Gauteng MEC for Economic Development, Agriculture and Rural Development Vuyiswa Ramokgopa visited the Tshwane Automotive Special Economic Zone (TASEZ) on Thursday, 21 May 2026 where she received a comprehensive briefing on the zone’s growth plans and toured one of its key manufacturing facilities supporting the automotive sector. The visit formed part of the Gauteng provincial government’s ongoing efforts to strengthen industrial development, attract investment and create jobs through strategic manufacturing infrastructure projects. Ramokgopa was briefed on the progress and future outlook of the TASEZ project by the organisation’s Executive for Business Development, Msokoli Ntombana. The presentation focused on the economic impact of the special economic zone, ongoing infrastructure development and plans for Phase 2 expansion. Ntombana outlined how the next phase of development is expected to further expand manufacturing capacity within the zone, strengthen supplier networks and unlock additional investment opportunities linked to the automotive industry. The MEC was also taken on a guided tour of the Thai Summit factory, one of the major component manufacturers operating within the special economic zone. The facility supplies automotive metal forming products, interior and exterior finishes, as well as various vehicle components to the nearby Ford manufacturing plant in Silverton. During the tour, Ramokgopa engaged with management and officials on production processes, industrial innovation and the role of automotive component manufacturing in supporting Gauteng’s broader economic growth objectives. The visit highlighted the strategic importance of TASEZ in positioning Gauteng as a leading automotive manufacturing hub on the continent, while also supporting localisation, export growth and employment creation. TASEZ has become a central pillar of South Africa’s automotive value chain, with multiple component manufacturers operating alongside Ford’s production facilities in Tshwane. The special economic zone continues to attract both local and international investors seeking to participate in South Africa’s growing automotive and advanced manufacturing sectors. The Gauteng government has identified industrialisation and infrastructure-led growth as key priorities in addressing unemployment and rebuilding economic momentum in the province.

Tshwane councillors encouraged by TASEZ progress after oversight visit

News / By Tasez

Tshwane councillors have expressed confidence in the progress made at the Tshwane Automotive Special Economic Zone (TASEZ), saying the project is emerging as one of the City’s most important industrial development platform, writes Mandla Mpangase. Members of the City of Tshwane’s Section 79 Oversight Committee on Integrated Development Planning, visited TASEZ on 12 May 2026 for an oversight inspection and engagement with management. The visit included a presentation by the TASEZ leadership team and a walkabout of two facilities within the Special Economic Zone (SEZ). The engagement focused on job creation, small, medium and micro enterprise (SMME) development, infrastructure delivery and the zone’s next phase of expansion, which is expected to deepen Tshwane’s position as one of South Africa’s automotive manufacturing hubs. TASEZ CEO Dr Bheka Zulu briefed councillors on the SEZ’s development, performance and strategic positioning as one of Gauteng’s most significant industrial projects, anchored by Ford’s Silverton operations and positioned in the wider Tshwane automotive corridor. Zulu said Tshwane produced about 40% of South Africa’s passenger vehicles and was home to five original equipment manufacturers – Ford, BMW, Nissan, Iveco and UD Trucks – with Chery also expected to enter the market. The region also hosts more than 100 component suppliers and supports more than 40 000 direct jobs in the automotive sector. Since its establishment, TASEZ in its first phase of development has attracted R4.12-billion in government investment and R5.9-billion in private-sector investment. It has created 5 500 construction jobs and 3 422 permanent jobs, while more than R1.7-billion has been spent on SMME procurement. The first phase of the project was largely built around supplier facilities linked to Ford’s R16-billion investment in its Silverton production plan in South Africa between 2020 and 2023, followed by a further R5.2-billion investment cycle from 2024 to 2026. Zulu said the zone’s supply-chain impact extended to about 10 000 jobs and made a significant contribution to GDP. He also highlighted TASEZ’s transformation and enterprise-development work. TASEZ reported that 229 SMMEs had benefited from Phase 1 and Phase 1A, while 265 SMME packages had been awarded and 370 SMMEs trained. TASEZ infrastructure executive Andile Sangweni briefed councillors on the SEZ’s expansion plans, saying the master plan included the 81ha Phase 1, a 10.5ha Phase 1A, an 81ha for Phase 2, and future land parcels. Phase 2 includes an industrial node, the TASEZ Centre of Excellence campus, truck staging and mixed-use elements aligned with market demand. Sangweni said Phase 2 was already being implemented, with work under way on the La Montagne reservoir, bulk water reticulation, bulk electrical infrastructure, roads, stormwater systems and internal engineering services. TASEZ expects Phase 2 to unlock further economic activity, with government investment of R1.95-billion in top structures and bulk services, and private-sector investment of R3.5-billion in machinery, equipment and technology. The phase is expected to create 2 000 construction jobs and 2 500 permanent jobs. The zone is also looking increased SMME procurement, with a minimum 30% of spending earmarked for SMME participation. The visit came as TASEZ advances plans to diversify its energy infrastructure. Sangweni said the zone’s energy plans include a solar independent power producer project by Heshun, which is expected to install rooftop solar photovoltaic and battery storage systems across selected factories in Phase 1 and Phase 1A. The project is expected to provide 20MW of photovoltaic capacity with battery storage, carry an estimated investment value of R600-million and be completed by May 2027. The solar project forms part of TASEZ’s broader green energy initiatives and extends its energy mix programme, which also includes a 20MVA gas-to-power solution. Zulu said the visit was more than a routine site inspection. “For Tshwane, the visit was more than a routine site inspection. TASEZ is an implementation partner of the City, has been in operation for five years and is linked to a memorandum of understanding with the municipality,” he said. “The engagement gave councillors an opportunity to see first-hand the progress being made, the economic impact already delivered, and the next phase of work required to deepen Tshwane’s role in South Africa’s automotive economy.”

TASEZ, partners donate 700 pairs of school shoes to learners

News / By Tasez

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) and the Community Project Committee have donated more than 700 pairs of school shoes to learners in Mamelodi, Nellmapius and Eersterust as part of the efforts to strengthen school participation in communities surrounding the industrial hub. The handover took place at J Kekana Secondary School in Ward 6 on Tuesday, 5 May 2026. TASEZ said the initiative formed part of its social compact and broader community development programmes linked to the growth of SA’s automotive manufacturing sector. The shoes were sponsored by TASEZ partners, including Thai Summit, Eltek Solethu JV and MES Major Projects. TASEZ CEO Dr Bheka Zulu said education remained one of the most critical drivers of long-term economic inclusion, particularly in communities under persistent socio-economic pressures. “Shoes don’t define you. You define where your shoes will go,” said Zulu, encouraging learners to remain focused on education despite difficult circumstances. The donation comes as large industrial developments face growing expectations to show measurable benefits beyond investment, infrastructure and job creation, particularly in communities located near strategic economic projects. TASEZ is positioning itself as Africa’s first automotive city, with plans aimed at deepening SA’s automotive value chain and supporting industrialisation in South Africa. But the scale of the project has also increased expectations that surrounding communities should share more directly in its development gains. Research by the United Nations Children’s Fund (UNICEF) and other development agencies has consistently linked access to basic school necessities, including uniforms and footwear, to improved attendance, learner retention and academic performance, especially in under-resourced communities. Statistics South Africa data continues to show that poverty and household income pressures remain major contributors to unequal educational outcomes across the country. Against this backdrop, TASEZ framed the intervention as part of a longer-term commitment to restoring dignity and supporting educational participation, rather than a once-off charitable exercise. Located in one of Tshwane’s largest townships, J. Kekana Secondary School serves a community where many households continue to face economic hardship. The initiative also reflects a broader shift within South Africa’s automotive manufacturing ecosystem, where environmental, social and governance (ESG) considerations are increasingly shaping corporate investment priorities and stakeholder expectations. For TASEZ, the message was clear: industrial expansion must translate into visible benefits for surrounding communities if economic development is to be sustainable and inclusive.

TASEZ stakes claim as blueprint for inclusive industrial growth

News / By Tasez

Infrastructure investment, the drive for localisation, and community integration position Tshwane’s automotive hub as a model for economic reform By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is emerging as a leading model for inclusive industrialisation in South Africa, with government and industry leaders positioning the automotive hub as a practical pathway to drive economic reform, investment, and job creation. This message took centre stage at a high-level investor engagement held in Menlyn Maine, Pretoria, where stakeholders outlined how coordinated infrastructure investment, localisation strategies, and community integration are underpinning the zone’s growth. Addressing investors and industry partners, TASEZ board chair Maoto Molefane said the evolution of the zone reflects a deliberate shift towards ensuring that industrial development delivers measurable socio-economic outcomes. “This is not just about industrial expansion – it is about building a model that works for communities, for investors and for the country as a whole,” said Molefane. He added that, despite persistent economic headwinds, targeted interventions through special economic zones offer a credible mechanism to accelerate industrial growth, deepen localisation and support structural transformation. A model for economic reform and inclusion Gauteng’s head of the Department for Economic Development, Motlatjo Moholwa, described TASEZ as an emerging blueprint for how South Africa can better align industrial policy with community development outcomes. “We are not yet where we want to be, but we are getting there. What we are seeing here is a blueprint – one that can be adapted across the country to ensure that development reaches communities meaningfully,” said Moholwa. Infrastructure investment anchors growth The City of Tshwane COO Vuyo Zitumane outlined the City’s coordinated approach to enabling industrial expansion. “Our focus is on creating a reliable, investor-friendly environment through sustained infrastructure investment and strategic planning. These developments are about positioning Tshwane as a globally competitive automotive hub,” said Zitumane. Localisation and industrial deepening TASEZ CEO Dr Bheka Zulu said the zone’s strategy is firmly anchored in localisation, industrial deepening and measurable economic impact. “Our focus is on building an integrated automotive ecosystem that drives localisation, expands supplier participation and delivers sustainable industrial growth. TASEZ is not only attracting investment, but also ensuring that value is retained and expanded within the local economy,” said Zulu. As TASEZ continues to scale, stakeholders say the focus will remain on converting policy ambition into tangible outcomes – from deeper localisation and expanded supplier networks to sustained job creation and community inclusion. With further investment expected in the next phases and infrastructure upgrades gathering pace, the automotive hub is increasingly being viewed not only as a driver of regional growth, but as a test case for how South Africa can translate industrial policy into measurable economic reform.

FER designates gain insight into TASEZ’s catalytic role in driving economic growth

News / By Tasez

By Mandla Mpangase Foreign Economic Representative (FER) designates in South Africa were given an on-the-ground look at one of the country’s most strategic industrial assets during a site visit to the Tshwane Automotive Special Economic Zone (TASEZ) on Monday, 23 March 2026. The visit highlights the zone’s growing role as a catalyst for investment, trade and industrial expansion. FERs provide direct access links to foreign markets for South African businesses, spot and recruit foreign direct investment into South Africa, gather foreign market intelligence, and assist South African and foreign businesses in accessing the Department of Trade, Industry, and Competition’s (the dtic) various programmes. They play a central role in marketing South Africa internationally and are essential for attracting foreign investment and ensuring that South African businesses can access international markets. Monday’s visit to TASEZ formed part of the dtic’s FER Capacity Building Programme, which is aimed at equipping South Africa’s economic diplomats with the tools and insights needed to position the country competitively in global markets. TASEZ, South Africa’s flagship Special Economic Zone, is driving a new model of integrated, export-oriented industrial development anchored in the automotive sector. “Our vision is to be the benchmark for SEZs in South Africa while contributing to the growth of the automotive sector, to be a major creator of new businesses and contributor to employment, transformation, and socio-economic development,” TASEZ CEO Dr Bheka Zulu told the designates. Located adjacent to the Ford Motor Company’s Silverton assembly plant in the City of Tshwane, the zone has become an important node in South Africa’s automotive value chain, linking manufacturers, component suppliers and logistics infrastructure. For FER designates, the visit underscored the importance of SEZs as practical instruments of economic policy, not simply as investment destinations, but as places that enable scale, efficiency and global competitiveness. The programme emphasises the role of provincial investment promotion agencies and SEZs in attracting foreign direct investment, facilitating trade and supporting exporters. Through exposure to projects like TASEZ, designates are able to see for themselves how economic policy converts into investment assets that appeal to international investors. During the visit, participants were introduced to the operational aspects of the zone, including its infrastructure offering, investor incentives and sectoral focus. The experience provided insight into how TASEZ is addressing key investor requirements such as proximity to original equipment manufacturers (OEMs), access to logistics corridors, and a supportive regulatory environment. “We see TASEZ as an engine for growth, an engine for development and an engine for innovation,” Dr Zulu told the visitors. In addition to its location in the country’s economic hub of Gauteng, TASEZ is also positioned as a catalytic project within the province’s broader industrial strategy – demonstrating how public-private partnerships can unlock large-scale investment and stimulate downstream economic activity. The site visit also highlighted the importance of aligning national economic diplomacy with provincial growth strategies. The on-site visit allows FER designates to identify investment opportunities and facilitate trade partnerships in their respective markets. As South Africa intensifies its efforts to attract investment and expand exports, initiatives such as the FER Capacity Building Programme, coupled with exposure to high-impact projects like TASEZ, are working hard to strengthen the country’s ability to compete globally.

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

News / By Tasez

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.

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

News, Thought leaders / By Tasez

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.

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

Thought leaders / By Tasez

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.