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Collaboration and partnerships key to development

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By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) has signed a Memorandum of Understanding with the Gauteng Provincial Legislature ahead of hosting the official opening of the legislature and the 2025 State of the Province Address next week. TASEZ CEO Dr Bheka Zulu and the Gauteng Provincial Legislature Acting Secretary Linda Mwale ceremonially signed the document during a media briefing at the Gauteng Provincial Legislature offices on 20 February 2025. Prior to the signing, members of the media were told of the strong partnership between the Legislature and TASEZ. The legislature’s Chair of Chairs, Bishop Dulton Adams said that holding the official opening of the legislature and State of the Province Address at TASEZ was of particular importance. “This is not just a venue. It is a symbol of economic transformation, industrialisation and investment driven growth.” The official opening of the legislature and the delivery of the State of the Province Address takes place in the TASEZ hub on 24 February 2025. TASEZ, he said, boosts Gauteng’s automotive industry, driving investment in economic growth, creating jobs and developing skills, and positioning Gauteng within the African and global trade environment. “This is a milestone moment for TASEZ,” the CEO told the media. Dr Zulu explained that TASEZ, known as Africa’s first automotive city, was a new kid on the block in terms of South Africa’s special economic zones (SEZs), but it was punching above its weight. The SEZ was supported by all three tiers of government: the Gauteng Province; national government, through the Department of Trade, Industry and Competition; and local government, through the City of Tshwane. “All these shareholders contribute to us, as an organisation, changing the landscape of SEZs and the automotive sector.” TASEZ, in the capital city of Tshwane, sits in the logistics crossroads of the country, reaching east and west, north and south, with access to the neighbouring states as well as globally through rail and port connections to the Durban Port. The SEZ is also supporting the creation of a rail link to Gqeberha, in the Eastern Cape. “What makes us unique and special is that our core focus is in the automotive sector, and that’s where we’ve made changes,” Dr Zulu said. The automotive industry an important contributor to the country’s economy. In 2024 the industry’s entire value chain contributed 5.3% to the GDP. The industry also employees more than 500 000 people across its value chain. “TASEZ has been able to design a world class automotive manufacturing hub providing a conducive environment for investors, where they can harness their potential of economic growth,” the CEO added. “With the global shift towards sustainable practices of a greener future, TASEZ has embraced a number of green energy solutions centred on solar power.” This was part of the SEZ’s cleaner strategy. “One of the reasons for this,” Dr Zulu said, “is that 65% of the products manufactured in TASEZ are for export.” These products reach more than 100 countries around the world, including Europe, where the continent has set 2035 as the deadline for a net zero carbon footprint. Dr Zulu also pointed out that the industry was moving towards new energy vehicles, which will require new skills and a new way of doing business. He took the media through the economic impacts TASEZ had made during it Phase 1 development: TASEZ spent R1.7-billion on construction procurement from small, medium and micro enterprises (SMMEs) – 43% of the total construction budget, well above the national target of 30%.Some 229 SMMEs benefitted, with 6.2% of the procurement spend going to women-owned businesses, 18% to youth-owned businesses, and 2% to people with disabilities.The SMME beneficiaries are based in the local communities of Eersterust, Mamelodi and Nellmapius. Some 5 500 jobs were created in construction, with 18% of the jobs going to women, 60% to youth, and 0.86% to people with disabilities. The SEZ created 3 311 permanent jobs, with 32% going to women, 65.47% to youth, and 0.83% to people with disabilities. Ford, the anchor tenant of TASEZ, has managed to expand its production by 40 000 units a year, up from 160 000 to 200 000. “What this means,” Dr Zulu said, “is we produce a car every minute. By the end of today, more than 720 cars will have been manufactured.” As TASEZ beings to unroll its Phase 2 development is has set up a center of excellence “because there is a growing need to upskill, reskill and prepare us, and our communities, for the advancement of technology”. TASEZ has raised additional funding specifically for skills development. “That’s how serious we are in terms of transforming and innovating this country – we can’t grow without our people. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

TASEZ to host 2025 State of the Province Address

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By Mandla Mpangase Africa’s first automotive city, the Tshwane Automotive Special Economic Zone (TASEZ) is hosting the official opening of the Gauteng Provincial Legislature and the State of the Province Address – the first special economic zone to do so. TASEZ being the venue for this year’s address is a powerful statement; it acknowledges the role the SEZ’s commitment to economic diversification and innovation. The SEZ, with its focus on the automotive industry and related sectors, represents a key driver of economic growth in Gauteng and hosting the event at TASEZ draws attention to the importance of the automotive manufacturing and technology sectors. Addressing a pre-State of the Province Address luncheon on 20 February 2025 the Speaker of the Provincial Legislation, Morakane Mosupyoe, explained why TASEZ had been selected to host this mammoth event. This special economic zone (SEZ) set up in the City of Tshwane was strategically positioned to support the expansion of the Ford Motor Company’s plan in Silverton assembly plant. “When the initial agreement was signed, I was MEC for economic development, so I was part of the team that was negotiating with Ford,” Mosupyoe said. “We had serious competition from Thailand by the way, so we fought for that investment to brought here, and ultimately we got it going.” Ford brought a R15-billion investment to the country to expand its South African manufacturing operations – one of the largest-ever investments in the local automotive industry. With that came further investments from component manufacturers, who were all based in the TASEZ hub, alongside the Ford assembly plant. The impact on the provincial and local economy was noticeable, with new jobs and business opportunities opening up for small, medium and micro enterprises – particularly within the communities surrounding the SEZ. With the first phase of TASEZ now complete – it was set up in a record 18 months, during a global economic crisis and a pandemic, the SEZ is now looking to the future. Premier Panyaza Lesufi decided that because TASEZ is going into its second phase, Gauteng should take the State Of The Province Address to the hub to highlight the work that has been going on there, the Speaker said. “I’m sure the premier will talk to the jobs that were created, as well as the many other impacts that came from the relationship.” Gauteng Province is one of the three strategic state partnerships that support TASEZ, with the other two being the Department of Trade, Industry and Competition, and the City of Tshwane. “We need to appreciate in these relationships boost the automotive manufacturing industry,” Mosupyoe said. TASEZ and its partners, including all its tenants, drive investment and economic growth, create jobs and it develop skills, she added. It positions South Africa as a gateway to Africa and global trade, speaks to infrastructure and economic development. The much-anticipated address takes place on Monday, 24 February 2025, under the theme “Harnessing Parliamentary Diplomacy for the Realisation of Global Solidarity, Equality and Sustainability”. The address is used by the premier to reflect on the provincial government’s achievements and challenges of the past year. It also serves as a platform to outline the province’s key priorities and plans for the year ahead. The State of the Province Address provides a crucial platform for the premier to communicate with the people of Gauteng, allowing for transparency and accountability as the provincial government outlines its key policy objectives and deliverables for this year. No doubt important topics such as economic growth, job creation, infrastructure development, and social service delivery will all fall under the spotlight.

TASEZ shares investment ideas, experience with African SEZs

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By Mandla Mpangase The leaders of Africa’s special economic zones (SEZs) – including Africa’s first automotive city – are putting their minds to the role they can play in attracting impactful investments and redefining competitiveness. This theme set the tone for the annual meeting of the African SEZs which was held in Nairobi, Kenya, at the end of November 2024. The meeting was attended by some 300 participants representing governments, international experts, decision-makers, financial institutions and representatives from the various SEZs. The Tshwane Automotive Special Economic (TASEZ) team participated in the meeting in order to “see how we are positioned in terms of the SEZs across the continent”, according to TASEZ CEO Dr Bheka Zulu, adding that it was surprising to find that TASEZ was ahead of the curve. “We have a lot to contribute, and we have much to learn too,” Dr Zulu adds. There are more than 200 operational SEZs in 47 countries on the continent, according to the African Economic Zones Outlook 2021. This breaks down into 150 000 hectares dedicated to manufacturing, ago-processing and services. It is estimated that more than $2.6-billion has been invested in these zones. South Africa currently has 11 SEZs based in different provinces: in the Eastern Cape are Coega and the East London SEZs; Maluti-A-Phofung is in the Free State; OR Tambo and the Tshwane Automotive Special Economic Zone (TASEZ) are situated in Gauteng; Dube Tradeport and Richards Bay are based in KwaZulu-Natal; the Musina/Makhado SEZ is in Limpopo; Nkomazi is based in Mpumalanga; and the Atlantis and Saldanha Bay SEZs are in the Western Cape. The African SEZs annual meeting is the flagship event of the African Union Commission (AUC) and the Africa Economic Zones Organisation (AEZO), providing insights on critical issues related to the development of SEZs in Africa. Said Business Development Executive Msokoli Ntombana: “SEZs are viewed as one of the key instruments to accelerate industrialisation, attract important foreign direct investments, and stimulate the country’s economy. It is crucial that these elements are firmly in place to answer the call of the National Development Plan to create jobs, fight poverty and promote socio-economic equality. “Not only are these priorities for South Africa, but are crucial for Africa’s success, as driven by the Africa Agenda 2063. SEZs have a critical role to play in shaping Africa’s economic landscape long-term,” Ntombana says. Topics covered at the Nairobi meeting included: Building intelligent infrastructure, focusing on necessary infrastructure upgrades, such as 5G networks and data centres to support industrial activity securely; Workforce development, looking at strategies for upskilling the workforce to integrate large-scale technologies; Regulatory frameworks for new technologies, examining how policies can be adapted to foster technology innovation while protecting data privacy and ensuring ethical use; Sustainability, discussing the integration of circular economy principles, eco-industrial parks, and sustainable urban planning in SEZ development; Financing sustainable SEZs, looking at innovative financing mechanisms such as green bonds and climate funds to support the sustainable development of SEZs; and Policy and governance, examining how African governments can create conducive environments for the growth of socially inclusive and sustainable SEZs. “As we head into the age of the new energy vehicles (NEVs), it is important to recognise that most of the commodities required for NEV development comes from the African continent,” the CEO says. “So for us to tap into the relationships with our brothers and sisters is actually forward- looking, because we have the insight to be able to create trade lines between ourselves,” Dr Zulu notes. “It is important to capacitate the rail infrastructure between the original equipment manufacturers based in the City of Tshwane and our ports, which are crucial to the export of vehicles to our global markets,” TASEZ CEO Dr Bheka Zulu noted.

Inclusive growth path will benefit SA economy – Finance Minister

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By Mandla Mpangase While fiscal prudence is the name of the game for the Minister of Finance Enoch Godongwana, a key standout – as far as automotive manufacturing industry in general, and the Tshwane Automotive Special Economic Zone (TASEZ) in particular – is the confirmation of rail upgrades between Tshwane and Gqeberha. Minister Godongwana delivered his 2024 Medium-term Budget Policy Statement (MTBPS) in the National Assembly on 30 October 2024. His policy statement outlined the country’s strategy to lift the economy to a higher and more inclusive growth path, and rests on four pillars: maintaining macroeconomic stability; implementing structural reforms; supporting growth-enhancing infrastructure; and building state capability. Speaking of the renewed energy that followed the national elections earlier this year, the minister said: “There is a new light that is shining down on our country and on our economy. The recent elections demonstrated the resilience and maturity of our young democracy.”   Three priorities sit at the heart of government policy: Pillar three of the MTBPS is about effective infrastructure investment that will boost economic activity and enable higher growth over the medium term. “In this regard, we are implementing reforms that will create conditions to attract greater private sector participation.” One particular aspect of this is “to increase the pool of funders to diversify public infrastructure financing through new mechanisms and instruments. These include build-operate-transfer (BOT) structures and other concessions”.   Included in this particular programme are capacity upgrades on the rail network from Watloo in the City of Tshwane – near TASEZ and the Ford plant in Silverton – to Gqeberha. This is particularly important given that the South African automotive industry is export-driven, with vehicles needing to be shipped to international markets. “It is important to capacitate the rail infrastructure between the original equipment manufacturers based in the City of Tshwane and our ports, which are crucial to the export of vehicles to our global markets,” TASEZ CEO Dr Bheka Zulu noted. Minister Godongwana added that a request for proposals will be issued this year for funders who are interested in supporting projects such as the Watloo to Gqeberha upgrades. “Collectively, the infrastructure reforms will strengthen planning, appraisal, contracting, financing, and monitoring and evaluation.  “The outcome will be faster delivery of infrastructure that supports economic growth, the expansion of access to basic services and boosting job creation.” According to naamsa, the Automotive Business Council, Gauteng has the highest diversity in the country’s automotive profile, housing three OEMs as well as the majority of first- and second-tier automotive component suppliers in the country. “The economic muscle of the South African automotive industry, with its economic gains far outweighing its fiscal costs, cannot be underplayed.” Vehicle export value topped R203,9-billion in 2023.

SA determined to drive towards new energy vehicles

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By Mandla Mpangase Consideration must be given to providing incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of electric vehicles in South Africa. This statement by President Cyril Ramaphosa in his key note address at the South African Auto Week 2024 was greeted by much applause by the industry role players. Speaking at the high-level event in Cape Town on Thursday 17 October 2024, the president recounted the recent economic diplomacy efforts of government globally, including in New York, London and Beijing. “Our experience confirms a greater interest in South Africa’s prospects.” South Africa’s auto industry makes a significant contribution to the country’s gross domestic product, which currently sits at 5.3%, a fifth of the value add within local manufacturing comes from vehicle and component production. The auto industry accounts for around 15% of the country’s total exports.  “[The industry] continues to blaze a trail in strategic economic markets on our continent, in North America, in Europe, as well as Indonesia.” It is also a major employer, collectively employing half a million people directly and indirectly across the value chain. Importantly, “the sector continues to actively support transformation”. The transformation targets have been set out in the South African Automotive Master Plan 2035. The plan sets out a number of targets: “The Automotive Industry Transformation Fund has supported a number of beneficiaries. It has facilitated market access for black-owned and female-owned firms to the value of R4-billion and supported thousands of jobs across the industry.” This year is a milestone for the automotive industry, marking 100 years of vehicle manufacturing in South Africa since the first Model T Ford rolled the assembly line of the Ford plant in Port Elizabeth (now Gqeberha). Industry leaders have shown great confidence in South Africa. Today the automotive manufacturing footprint has expanded exponentially, with international auto companies now major investors in the South African economy. “They have consistently featured prominently at the annual South African Investment Conference, which was inaugurated in 2018,” the president said, adding that “over the past few years, these companies have invested an average of some R8-billion rand a year.” Component suppliers have also invested a considerable amount into the South African economy – about R4-billion a year. However, the industry faces many challenges, including the transition towards decarbonisation, with a move to cleaner, more sustainable fuels and stringent regulations. “Even as the journey to net zero poses a challenge for the auto industry there is, at the same time, immense opportunity. The local automotive sector needs to position itself to take advantage for the demand of electric vehicles (EVs), new energy vehicles (NEVs) and sustainable fuels.” President Ramaphosa noted that this was a government priority. “The automotive industry has a critical role to play in achieving South Africa’s climate targets. We’re committed to working with the private sector to promote the production of NEVs and the development of the necessary infrastructure to support them.” This includes the beneficiation of critical minerals for the production of NEVs and their associated value chains, as well as the production of batteries and green hydrogen fuel cells for EVs. “We are working to finalise comprehensive NEV policy guidelines that include alternative technologies such as hybrids and plug in hybrids, so consideration must be given to incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of EVs.” The president noted that this was not just about creating a greener future, but also about ensuring South Africa remains competitive in the global market. “This is a major industrialisation opportunity for our country and the region as well, particularly within the context of the African Continental Free Trade Area. This will position South Africa as a forward-thinking green economy.”

Together, we can grow the auto sector

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By Mandla Mpangase From attracting foreign direct investments, to supporting auto component producers, to providing skills for the future, to opening up opportunities for local communities, the Tshwane Automotive Special Economic Zone (TASEZ) has an several key roles to play in the transformation of the automotive manufacturing sector.  TASEZ CEO, Dr Bheka Zulu, described just some to the work TASEZ does during a panel discussion on the opening day of South Africa Auto Week 2024 in Cape Town. TASEZ is a key partner of this annual gathering of the industry. A hot topic at the high-powered event, taking place from 15 – 18 October 2024, is that of training skilled workers for an evolving sector, as the production of new energy vehicles (NEVs) is no longer on the horizon, they are already here. “South Africa’s workforce must keep pace,” Dr Zulu said. The rise of EVs, autonomous driving technologies, and smart manufacturing requires an entirely new set of skills. This is where the TASEZ Training Academy comes into play. With the manufacturing sector in constant change as the Fourth Industrial Revolution takes hold, TASEZ, through its’ training academy, is making sure that workers are equipped for this future. “This initiative is critical in ensuring that the country not only retains its competitive edge in automotive manufacturing but also contributes to the development of a highly skilled, future-ready workforce.” “But,” Dr Zulu told the panel, “our academy goes much further; it also offers training to emerging businesses and small, medium and micro enterprises (SMMEs) in both business management as well as the soft skills of marketing their products.” The CEO pointed out the importance of supporting SMMEs and the local communities bordering the SEZ. Currently SMMEs are estimated to contribute 40% towards South Africa’s Gross Domestic Product (GDP). The National Development Plan highlights the importance of SMMEs to the economy. It envisages that 90% of all jobs will be generated by small enterprises in 2030. “As South Africa charts a course toward a more competitive, inclusive, and sustainable automotive industry, we must all go all out to make grow and transform our sector,” Dr Zulu added.

Clean audit for TASEZ makes it four in a row

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Not only is the Tshwane Automotive Special Economic Zone (TASEZ) an innovative driver of economic development through supporting the manufacturing sector, it is also a shining example of good governance. Africa’s first automotive city has received its fourth clean audit from the Auditor-General, cementing TASEZ’s reputation as the premier special economic zone (SEZ) for automotive investments in South Africa. “This can be attributed to the effectiveness of the board’s strategic guidance and the SEZ’s commitment to rigorous corporate governance,” says TASEZ CEO Dr Bheka Zulu. This, as TASEZ heads into its Phase 2 development, broadening its offering to diverse investors in the automotive manufacturing space. The clean audit is important as it provides investors with comfort of knowing that the SEZ is committed to sensible, judicious and transparent fiscal management, Dr Zulu adds. “It assures our investors, both international and local, that their investments are managed with integrity and diligence.” As one of the key implementors of South Africa’s industrial development policies, TASEZ plays a critical role in the SEZ ecosystem. TASEZ’s mandate is to accelerate economic reform through attracting investment, creating jobs, and opening up opportunities for small, medium and micro enterprises, particularly for the communities of the nearby townships of Mamelodi, Eersterust and Nellmapius.

MEC tours TASEZ, sees firsthand how SEZs can help accelerate reindustrialisation

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Special economic zones (SEZs) are ideally placed to help accelerate the country’s much-needed industrialisation, securing foreign direct investment that can be used to create jobs, develop infrastructure and boost local economies. Africa’s first automotive city, the Tshwane Automotive Special Economic Zone, is one of these key drivers. SEZs are viewed as key instruments to making South Africa an attractive option for foreign direct investments. SEZs are important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation. Tuesday, 16 July 2024 saw the Gauteng MEC for economic development and treasury, Lebogang Maile, visit three of the 12 factories currently based in the SEZ – Ford Frame, Feltex, and Sodecia – to see for himself what the zone provides. TASEZ was established through a committed investment and against a very tight deadline – and during Covid 19 – setting the bar for the development of new SEZs in South Africa. From its beginnings in the dusty veld on the outskirts of Silverton in 2020, to seeing the first cars come off the production line in November 2022, TASEZ has shown just what can be achieved with a solid investor and strong leadership from all three tiers of government. Looking to expand, Ford Motor Company of Southern Africa committed to a R16-billion investment to produce an extra 40 000 vehicles a year, moving from 160 000 units to 200 000 units annually. Supporting Ford’s investment was the political will to drive the project and ensure its success. All three tiers of government become equal shareholders, each with clearly defined roles. The factories based in the SEZ all produce components for Ford, with a focus on just-in-time and just-in-sequence systems. The first phase of TASEZ’s development saw the creation of 3 244 permanent jobs within the zone, with more than 65% from the surrounding communities: 32% going to women and 65.4% by the youth. In addition, more than 5 071 construction jobs were created. “This is in line with the department’s objective of strengthening access into the economy for marginal communities,” Maile noted. “This brings the total of direct jobs created through SEZ to over 8 000 direct jobs resulting in more than 18 396 indirect jobs.” TASEZ CEO Dr Bheka Zulu said: “We are aware of the important role SEZs play in helping to accelerate reindustrialisation of our economic hubs.” He added: “TASEZ is well-placed to help create jobs, support our local communities and boost their economies, and share knowledge and skills.” TASEZ’s Phase 1 also saw 256 opportunities ring-fenced for small, medium and micro enterprises, totalling R1.7-billion in procurement spend. The SEZ is now focusing on its Phase 2 development, and embracing the challenges the South African automotive manufacturing sector faces, in growing the sector, creating jobs, providing access to skills development, ensuring materials and jobs are localised, and including the requirements need for the era of new energy vehicles (NEVs). Over the next two years, Ford will be investing an additional R5.2-billion for the production of the first-ever Ranger plug-in hybrid electric vehicle (PHEV).

TASEZ greets new Gauteng MEC, views operations

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Gauteng’s newly-appointed member of the provincial executive council (MEC) for economic development and treasury, Lebogang Maile made time to the meet the Tshwane Automotive Special Economic Zone’s (TASEZ) executive team and familiarise himself with the special economic zone’s operations. Close relationships with strategic partners is vital to the SEZ, with the Gauteng government being one of the three government partners in TASEZ. As TASEZ chairperson Lionel October explained: “The establishment of Africa’s first automotive city was a pilot project of new integrated strategic partnerships to be used by SEZs in South Africa.” Central to its development is the three-tier partnership between national government that focuses on the high-level structure, the provincial government that provides funding for the infrastructure within the zone, and the local government that provides infrastructure such as roads and electricity into the zone. This catalysed the financial investment put into the project by the Ford Motor Company of Southern Africa as part of its plans to double the production of its vehicles in Silverton, City of Tshwane, by 40 000 units, to 200 000 units annually. The SEZ completed the first phase of its development in a mere 18 months – and during Covid-19 – using a R24-billion investment in setting up an automotive manufacturing zone that currently has 12 fully operational facilities and employs 3 500 people. MEC Maile, who met the TASEZ team, including CEO Dr Bheka Zulu and CFO Rebecca Hlabatau, on Friday 12 July 2024, is immersing himself in his extensive and economically critical portfolio. The Gauteng Department of Economic Development is tasked with leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng city region. And SEZs, as important instruments in advancing the country’s strategic objectives of industrialisation, regional development, the promotion of exports and job creation, have an important role to play – they are key to making South Africa an attractive option for foreign direct investments. “Our special economic zones programme, supported by intensive investment promotion, will be utilised to accelerate the re-industrialisation of the Gauteng city region,” Maile said.

Minister of Trade, Industry and Competition delivers key policy assessment at TASEZ

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The Tshwane Automotive Special Economic Zone (TASEZ) was chosen to host the delivery of a critical national policy assessment by the Minister of Trade, Industry and Competition, Ebrahim Patel on Tuesday, 7 March 2024. The minister delivered the Industrial Policy and Strategic Review – Transforming Vision into Action: Charting South Africa’s Industrial Future. “TASEZ was chosen as the venue for this occasion as it demonstrates how changes in the approach to implementing industrial policy has given different, significantly positive, results,” the minister said at the beginning of his review. This review – and plan for the future – takes place at a critical time, as the country celebrates 30 years of democracy, and a few weeks before South Africa’s seventh administration takes office. South Africa’s economic development has, over the past three decades, leaned into the national industrial policy to drive growth and transformation in an effort to eliminate poverty and reduce inequality, with industrialisation identified as a key to unlocking the economy, building investor confidence and creating jobs across multiple sectors. Economic impact of investment into South Africa Minister Patel noted that foreign direct investment (FDI) into South Africa rose to R1.1-trillion between 2019 to 2023, a significant increase from the previous five-year period which garnered R312-billion. Investments over the past five years were 3½ times larger. This was despite the turbulent headwinds the country had to endure over the last five years:   The FDI packages ameliorated much of the negative impact of the six shocks the country endured. “The resilience of the South African economy has surprised many commentators,” Minister Patel noted. He referred to the 2023 EY Attractiveness Africa Report which highlighted that South Africa attracted the most FDI projects in Africa – 157, making up 23% of the continent’s total. According to the report, South Africa’s FDI was valued at US$26.8-billion and created about 15 000 jobs, the highest number in southern Africa. The minister also noted that of the R1.5-trillion pledged at the five cycles of the South Africa Investment Conference, a third of the projects had already been completed, with others under construction. “What we did in these five years is to try and get investment to flow notwithstanding the headwinds – and we have already seen some real impact.” Minister Patel reviewed the work done by the Department of Trade, Industry and Competition over the past five years, discussing a number of success stories in a variety of sectors; examining the challenges that had arisen; and charting a way forward to speed up the various economic programmes. Several key elements were vital to the success of the reimagined industrial strategy, including: This was supported by a number of programmes including the development of sectoral masterplans, which saw a move towards a multi-stakeholder approach, “in which government, the private sector and labour collectively developed and implemented plans”. The masterplan process modelled a new approach, where the state works in a flexible way to address the diverse concerns facing individual companies and other stakeholders. A catalytic project on SEZ development TASEZ is shining example of this approach; showcasing a more rapid and coordinated development process, particularly in reference to setting up special economic zones. One of the key drivers of TASEZ’s business approach is the South African Automotive Masterplan, with its focus on transforming the sector, promoting localization and creating jobs. TASEZ is a critical case study in the speedy implementation of the special economic zones in South Africa. It took four short years for TASEZ to develop from a dusty veld to a modern industrial hub, with an automotive original equipment manufacturer (OEM) – the Ford Motor Company of Southern Africa – supported by other component manufacturers. “Investment was unlocked through an anchor firm, Ford, while the dtic, the Gauteng government, and the City of Tshwane pooled their resources and capabilities,” the strategy review notes. “This solid base allowed for the rapid unlocking of 11 investments by component firms and help establish the SEZ by developing a network of interconnected producers around the zone.” The review noted: “All of this was underpinned by strong alignment with pre-existing policy including state support through the Automotive Production and Development Programme and investment funding through projects like the Automotive Investment Scheme.” In its short existence, TASEZ has seen an investment of R16-billion from Ford; R5.6-billion from the various component manufacturers; and R3.92-billion from government – in its first phase of development. In addition, the first phase of TASEZ has seen the creation of 3 244 permanent jobs in the automotive manufacturing sector and a further 5 071 jobs in construction. Procurement spend in the small, medium and micro enterprise sector has totalled R1.7-billion so far. “This mode – of moving quicky, working through partnerships, coordinating across the state and aligning with broader support programmes – offers a sturdy pathway for the revitilisation of industrial policy,” the review report noted. TASEZ is now preparing to begin the second phase of development, with several investors already preparing to join the hub. “As a special economic zone that plays an integral role in transforming the automotive manufacturing sector,” TASEZ CEO Dr Bheka Zulu, adding that the Africa’s first automotive city could attest to the importance of a strong industrial policy in encouraging global investors.