green economy Archives

Cabinet approves plan to drive job creation

Cabinet has approved the revised Industrial Development Strategy for implementation to facilitate employment opportunities through various projects and programmes. “The Industrial Development Strategy is expected to create thousands of jobs each year, with a strong focus on skills development and preparing unemployed people for high-demand sectors such as renewable energy and manufacturing,” Minister in The Presidency, Khumbudzo Ntshavheni said on Friday, 5 June 2026, in Pretoria. The Industrial Development Strategy prioritises sectors critical to industrialisation, including the protection of strategic industries such as steel, automotive, manufacturing and mining. It also promotes expansion in future growth areas including agro-processing, the digital economy and the green economy. “In addition, the strategy targets sectors with strong potential for economic growth and job creation, especially for young people, including tourism and global business services,” the minister said. She added that a committee of ministers, chaired by President Cyril Ramaphosa, will oversee implementation of the strategy to ensure coordinated delivery and impact. Developed through extensive consultation, the strategy focuses on high-impact, inclusive industrialisation of South Africa’s economy. It aligns with the policy priorities of the seventh administration and is anchored in three key pillars to drive industrial growth and transformation: decarbonisation, digitalisation and diversification. – SAnews.gov.za

TASEZ enterprise development driving MSME growth and job creation

News / By Tasez

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.”

Collaboration is needed to gear up to new auto future

Thought leaders / By Tasez

If South Africa is to transform the automotive sector as spelt out in the South African Automotive Master Plan 2035, the industry must take decisive action on a wide range of issues, including decarbonisation, writes TASEZ CEO Dr Bheka Zulu. As the country’s special economic zone (SEZ) focused primarily on the automotive industry, the Tshwane Automotive Special Economic Zone (TASEZ) is ready to play a key role in moving the transformation efforts forward. While South Africa has set itself the task of zero net emissions by 2050, many of the country’s automotive export markets have set stringent targets over the next decade and the original equipment manufacturers (OEMs) are gearing up for the change. No doubt, this will be one of the main talking points at this year’s South African Auto Week, taking place in Cape Town from 15 – 18 October 2024. The theme for this year’s event is Reimagining the Future Together: Celebrating 100-Years of automotive heritage, passion, resilience and ingenuity. Among the topics up for discussion are “Decarbonising the auto sector”, “A path to net zero”, and “SA NEV (new energy vehicle) transition: Policy choices and support instruments”. It is against these current discussions that input from research by Deloitte, Automotive Pathways to Decarbonisation, becomes both prophetic and doable. The report, that “by 2050, automakers are expected to reduce CO₂ emissions by 90%”. It goes on to note that “to reach these aggressive targets, however, the entire value chain will need to be decarbonised”. The Deloitte report states: “Despite ongoing advances in the fuel efficiency of vehicles with internal combustion engines, the automotive sector’s pathway to decarbonisation requires accelerated adoption of electric vehicles (EV). Beyond the regulatory push to reduce tailpipe emissions, this shift is also being driven by consumer demand. In response, automakers around the globe have been ramping up EV production and sales.” However, the sector is faced with the high costs of expanding EVs into the market place, inconsistent regulatory frameworks globally, insufficient access to green inputs such as batteries and steel, a lack of competitive green business models and strong sustainable strategies, the report adds. But all is not lost. “By quickly ramping up EV production, increasing usage of renewable energy, and establishing material circularity, automakers can enhance the industry’s ability to meet the Paris Agreement’s science-based emissions reduction targets.” Deloitte suggests OEMS and component producers adopt circular business models and transition clean energy in both production plants and usage by prioritising sustainability when extracting and processing basic materials, producing vehicles and their parts, and decommissioning vehicles at their end-of-life. “To achieve this target state, the sector will need to eliminate traditional sector boundaries, involve suppliers and customers in the solution, and foster strong cross-sectoral collaboration.” This is where TASEZ is well-equipped to play a significant transformative role as an SEZ. Its strength is in building strong strategic partnerships, supporting current and potential automotive manufacturing tenants in creating green facilities that incorporate the latest technologies, and helping to train a workforce familiar with future trends within the industry. TASEZ’s facilities already embrace green energy solutions, using battery and solar elements. In addition, the SEZ’s close ties with local industry associations, training institutions and industry role players ensure that investors are provided with access to the latest technologies. Because TASEZ is based in the City of Tshwane, it is surrounded by academic, innovative and technological institutions, which are more than capable of supporting tenants in terms of research and development. It is only through partnerships and collaborative action across the entire value chain that a strong decarbonised sector will be built – and there is not too much time left to do so.