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South Africa sets the stage for broad-based, investment-led growth

By Mandla Mpangase South Africa is entering a new phase in its economic trajectory, with President Cyril Ramaphosa positioning the country as a reform-driven, investment-ready destination focused on inclusive and sustainable growth. Addressing more than 1 000 delegates from over 50 countries at the sixth South Africa Investment Conference on 31 March 2026, Ramaphosa made it clear that the government’s priority is not only to attract capital, but to ensure investment translates into tangible, broad-based benefits. “We are creating the conditions for investment-led growth that is broad-based, inclusive, and durable,” he said. “Investment conferences such as this are an opportunity for us to showcase the attractiveness of investment opportunities in our country to domestic and international investors. By connecting investors with local opportunities, we are able to attract foreign direct investment (FDI). They also facilitate strong partnerships by bringing together governments, business, banks, and development finance institutions.” Gauteng, the country’s economic hub, provided a fitting backdrop. As the largest contributor to national GDP, the province remains central to South Africa’s investment proposition. South Africa’s post-1994 journey has been marked by resilience. The country has navigated global and domestic shocks, from the financial crisis to state capture and the COVID-19 pandemic, while maintaining institutional stability. Now, that resilience is being translated into growth. Under the Government of National Unity formed after the 2024 elections, the economy has recorded four consecutive quarters of expansion into early 2026, alongside stabilising inflation and improved investor sentiment. However, Ramaphosa stressed that credibility must be backed by delivery. “We know that investors reward execution, not just commitment,” he said, highlighting a shift toward measurable reform outcomes. Central to this effort is Operation Vulindlela, a joint initiative between the Presidency and National Treasury aimed at removing structural constraints to growth. Its focus is on reducing the cost and complexity of doing business across key sectors, including energy, logistics, water, and visas. Nowhere has reform been more consequential than in the energy sector. Following years of load shedding, the government has restructured the electricity market, unbundled Eskom, and opened the grid to private investment. The result is a rapidly expanding pipeline of renewable energy projects and improved energy security. Through these interventions, Ramaphosa said, “we have brought an end to load shedding and ensured a reliable supply of electricity”, a critical milestone for restoring investor confidence. Energy reform also underpins South Africa’s broader transition to a low-carbon economy. Opportunities in green hydrogen, electric vehicle manufacturing, battery storage, and critical minerals are expected to drive future growth, while aligning with global climate commitments. With its significant reserves of platinum group metals and other resources, the country is well-positioned to play a strategic role in global clean energy value chains. Importantly, the transition is being framed as inclusive. “We have been firm that the energy transition must be just and that it should leave no one behind,” Ramaphosa said. Infrastructure investment is another cornerstone of the growth strategy. Over the next three years, the government has committed more than R1 trillion to infrastructure development across transport, energy, water, and digital systems. “Infrastructure is the flywheel that propels growth,” Ramaphosa said, noting its role in reducing costs, improving productivity, and creating jobs at scale. The approach is designed to crowd in private sector participation. Reforms in logistics are opening rail and port operations to competition, while new public-private partnership frameworks and blended finance instruments aim to de-risk investment and accelerate delivery. In the water sector, a pipeline of projects worth more than R50 billion is being prepared for private investment. Beyond infrastructure, the government is emphasising inclusion. Investment projects are expected to incorporate local content, skills development, and community benefits, ensuring that growth is shared more widely. At the same time, South Africa’s empowerment framework is being refined to balance transformation with investment attraction. Mechanisms such as the Equity Equivalent Investment Programme allow multinational firms to contribute to development without altering ownership structures. “Our overriding objective is to support firms with compliance, and to embrace empowerment as a meaningful investment in South Africa’s long-term economic stability,” Ramaphosa said. The conference also marked the launch of a second investment mobilisation drive, targeting R2-trillion in new investments between 2026 and 2030. This builds on the success of the first drive, which exceeded its R1-trillion target. The new phase begins with a strong pipeline of 81 projects worth nearly R890-billion, expected to create more than 230 000 jobs. “This is not ambition for its own sake,” Ramaphosa said. “It is the arithmetic of what South Africa requires to achieve meaningful unemployment reduction and industrialise at scale.” As global uncertainty reshapes capital flows, South Africa is positioning itself as a stable, reform-oriented destination. While Africa continues to attract a relatively small share of global foreign direct investment, the country remains a leading recipient on the continent. “We are meeting at a time of uncertainty for the global economy. Geopolitical fragmentation, supply chain disruptions from conflicts and wars, and trade tensions are radically impacting global capital flows,” Ramaphosa noted. “In such conditions, South Africa presents a favourable proposition as a resilient, credible and reform-oriented investment destination with strong fundamentals.” Ultimately, the success of this strategy will depend on sustained implementation. “This is only the start of an era of new growth and dynamism for South Africa’s economy,” Ramaphosa said. The task now is to convert investment commitments into real projects and ensure those projects deliver lasting, inclusive growth.

SA investment drive shifts from promises to infrastructure delivery

News / By Tasez

By Mandla Mpangase South Africa’s investment agenda is entering a new phase, with infrastructure development emerging as central to converting pledges into visible economic growth, as the country prepares to host the sixth South Africa Investment Conference under the theme “Investment that delivers”. The conference, on 31 March 2026 at the Sandton Convention Centre in Johannesburg, is designed to move beyond policy commitments toward “bankable, deployable opportunities” that translate into measurable outcomes. This shift reflects a broader evolution in the country’s investment strategy – from attracting commitments to ensuring implementation – with infrastructure positioned as the backbone of that transition. Infrastructure at the centre of investment strategy Government and industry leaders have increasingly aligned around a common understanding: without modern, reliable infrastructure, investment cannot scale. Recent policy signals reinforce this priority. In the Presidency Budget vote for 2025/2026, South Africa committed more than R1-trillion to public-sector infrastructure over three years, with a strong focus on transport, logistics, and energy systems – all critical enablers of industrial expansion. At the same time, the South Africa Investment Conference is structured to showcase projects that are not only investment-ready but also already placed within broader infrastructure ecosystems. These include logistics corridors, industrial parks, and sector-focused development zones designed to unlock productivity and competitiveness. Minister of Trade, Industry, and Competition Parks Tau underscored this approach in the build-up to the conference, noting that South Africa is making its investment case “not with promises alone, but with proof”, as billions in previous pledges are already being funneled into operational projects. More than R600-billion from earlier investment commitments has already flowed into new factories, mines and productive infrastructure, signaling a growing emphasis on execution. Speaking in the run-up to the conference, Minister Tau emphasised that South Africa’s national strategic landscape, underpinned by the Growth and Inclusion Strategy and the country’s ongoing reform agenda, provides a coherent, compelling framework for investors who are serious about long-term returns in a high-potential emerging market. TASEZ: A model of infrastructure-led industrialisation Within this national framework, the Tshwane Automotive Special Economic Zone (TASEZ) has emerged as a leading example of how targeted infrastructure investment can catalyse industrial growth. Strategically located within Gauteng’s automotive corridor, TASEZ integrates world-class manufacturing facilities with purpose-built logistics infrastructure, enabling seamless movement of goods between production sites, suppliers and export channels. Its development has been closely tied to anchor investments in the automotive sector, demonstrating how infrastructure, when aligned with industry needs, can rapidly unlock value chains and attract further investment. Crucially, TASEZ illustrates a shift in how special economic zones are being positioned in South Africa. Rather than operating as isolated industrial parks, SEZs are increasingly viewed as integrated ecosystems, combining: This integrated approach is central to improving competitiveness, particularly in sectors such as automotive manufacturing, where logistics efficiency and supply chain reliability are decisive factors. Linking infrastructure to localisation and jobs Infrastructure investment is also directly tied to South Africa’s localisation and job creation agenda. Discussions feeding into the South Africa Investment Conference have highlighted how infrastructure gaps continue to constrain local manufacturing, particularly in component production and supply chain integration. By addressing these bottlenecks, projects like TASEZ are helping to: This aligns with broader industrial policy objectives, with infrastructure viewed as a strategic tool for economic transformation. From investment platform to delivery engine The evolution of the South Africa Investment Conference reflects a maturing investment ecosystem that prioritises delivery, accountability and measurable impact. With infrastructure at its core, the conference is positioning South Africa as a destination where capital is not only welcomed, but effectively deployed. In this context, TASEZ stands out as a tangible demonstration of what “investment that delivers” looks like in practice: a project where infrastructure, policy alignment and private-sector participation converge to create a functioning industrial hub. As the country seeks to deepen its investment pipeline and accelerate growth, infrastructure is the foundation upon which South Africa’s next phase of industrialisation will be built.

SA’s investment prospects buoyed by economic recovery

Thought leaders / By Tasez

In his weekly newsletter on Monday, 30 March 2026, President Cyril Ramaphosa gears up for the sixth South Africa Investment Conference taking place in Sandton, Gauteng. This week, we will be welcoming delegates from more than 50 countries to the sixth South Africa Investment Conference (SAIC) in Sandton, Gauteng. Since its inception in 2018, the SAIC has grown to become a premier global forum for showcasing the attractiveness of investment opportunities in our country to domestic and international investors. Investment conferences play a key role in attracting foreign direct investment (FDI) as high-profile platforms that connect international investors with local opportunities. They also facilitate strong partnerships by bringing together governments, business, banks and development finance institutions. As investors look to destinations that have demonstrated resilience in the face of increasingly volatile global financial conditions, South Africa presents a favourable proposition. We are Africa’s largest economy with a diversified industrial base. Since we began our first R1,2-trillion investment mobilisation drive in 2018, we have secured investment pledges in mining, healthcare, automotive, food and beverage and others, reflecting the sophistication of our economy. South Africa is also the leading destination for renewable energy investment on the continent, with these investments making up a considerable share of the total pledges made at previous conferences. We have a sound policy and regulatory environment, offering certainty to investors at a time when we are just one of many emerging markets across the globe vying for capital. We are also a gateway for businesses looking to set up or expand their operations in Africa. Through this conference, as well as the five preceding ones, we will be seeking to build even greater confidence in our country as an investment destination, and to demonstrate our commitment to structural reform, policy certainty and policy execution. The green shoots of economic recovery we are experiencing further bolster our position. The macroeconomic outlook has improved. We experienced four consecutive quarters of growth by the end of 2025, national debt has stabilised, and more jobs are being created. Last year, our sovereign rating was upgraded for the first time in 17 years, and we were removed from the Financial Action Task Force grey list. The structural reform agenda being driven through Operation Vulindlela has unlocked progress in electricity, freight logistics, water, telecommunications, and the visa system. We have brought load-shedding to an end and are creating a new, competitive electricity market that will ensure energy security and attract investment. The country’s logistics sector is being rapidly modernised, and we are enabling private investment in port and rail operations. Among the projects for which we have initiated a Private Sector Participation (PSP) process are the Ngqura Manganese Export Corridor in the Eastern Cape and the Richards Bay Dry Bulk Terminal in KwaZulu-Natal. Last year we also signed a 25–year concession for the Durban Container Terminal Pier 2, representing R11-billion in private investment. A system for third-party access to the freight rail network is in place, and 41 freight rail slots have been allocated to private companies. We have implemented reforms to the visa regime to attract new skills and promote tourism. These include operationalising the Remote Work Visa, introducing a Trusted Employer Scheme to support major investors, and piloting an Electronic Travel Authorisation system. By showcasing the progress and durability of the reform agenda, our goal is to grow the pool of inward investment from businesses and countries that will ultimately be a bridge to new markets, technologies and networks for South Africa. This year’s conference has to date attracted more than 1 000 delegates from more than 50 countries. At the end of our first five-year investment mobilisation drive in 2024, we exceeded our target by 26%, securing pledges valued at R1,57-trillion. Over 300 projects were initiated, and to date, 161 of these have been finalised or are under construction. The pledges have not been merely vague commitments and promises, but have materialised as tangible, brick-and-mortar projects that are creating jobs for our people. Last year I opened the Platreef Mine in Mokopane in Limpopo, which is positioned to play a leading role in the production of sought-after critical minerals for the energy transition. This facility that employs more than 2 000 workers from the local community and is partly owned by a community trust emanated from a R2,8-billion investment pledge by Ivanhoe Mines at the South Africa Investment Conference in 2022. Last year, I also visited the BMW plant in Rosslyn in Tshwane, where the automotive giant has invested R4,2-billion for the electrification of its only plant on the continent that will be producing the BMW X3 Plug-in Hybrid electric vehicle. This was also an investment pledged at the SAIC. By showcasing our unique and favourable proposition as an investment destination of choice, we have set ourselves the goal of mobilising R2-trillion in new investments by 2028. As we strive to achieve growth that creates jobs for our people, this next phase will move from pledges towards implementation. This year’s investment conference stands at the crossroads of opportunity and ambition. The clear message we will be delivering is that we remain committed to staying the course on fiscal discipline, to accelerating the momentum of the reform agenda – and to leveraging investment to build an economy that is inclusive, transformed and that benefits all.

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.

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.

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

News / By Tasez

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

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

News / By Tasez

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

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

News / By Tasez

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

TASEZ enterprise development driving MSME growth and job creation

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.”

Budget 2026 signals infrastructure push and investment drive to unlock growth

News / By Tasez

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