Parks Tau Archives

TASEZ positioned as a flagship for South Africa’s next phase of industrialisation at SEZ Conference

By Mandla Mpangase South Africa’s Special Economic Zones (SEZs) are expected to play an increasingly important role in driving industrialisation, investment and export-led growth, with the Tshwane Automotive Special Economic Zone (TASEZ) well-positioned as one of the country’s leading examples of what a modern, high-performing SEZ can achieve. Opening the exhibition component of the 2nd International Special Economic Zones Infrastructure and Investment Conference in Durban on Thursday, Minister of Trade, Industry and Competition, Parks Tau, said the country’s network of SEZs has become a significant contributor to industrial development and will form a central pillar of the government’s long-term economic strategy. Addressing more than 1 000 delegates from government, industry, development finance institutions, and international partners, Tau highlighted the scale of South Africa’s SEZ programme, noting that 13 designated SEZs across eight provinces now host 224 companies, which have collectively invested R31.7-billion and created more than 28 000 jobs. The Department of Trade, Industry and Competition (the dtic) has invested approximately R12-billion in bulk and top-structure infrastructure to support the zones. “The exhibition floor shows policy in practice,” Tau said, encouraging delegates to engage directly with investors, incentive packages, and development opportunities represented by the country’s SEZs. Among the country’s standout performers is TASEZ, which has rapidly established itself as one of South Africa’s flagship industrial zones. Situated adjacent to Ford Motor Company’s Silverton Assembly Plant in the City of Tshwane, the automotive-focused SEZ has become a benchmark for integrated industrial development, attracting major investment, strengthening local supplier networks, and supporting South Africa’s automotive manufacturing ambitions. The minister cited the expansion of another successful automotive-focused zone, the uMlathuze TradePort Special Economic Zone, as evidence that targeted infrastructure investment can unlock substantial private-sector participation. He noted that the expansion had attracted R16-billion in private investment, alongside billions more from public investors, and created more than 3 300 direct jobs. For TASEZ, these outcomes reinforce the value of the automotive SEZ model. The zone has already become a critical component of South Africa’s automotive value chain by enabling supplier localisation, supporting component manufacturers, and strengthening export competitiveness around one of the country’s largest vehicle assembly plants. Tau also announced that the government will use the conference to table an independent World Bank review of South Africa’s SEZ programme. The findings will inform a revised implementation model aimed at encouraging greater private-sector participation, strengthening financial and non-financial incentives, and introducing mechanisms to improve the performance of underperforming zones. Responding to questions from the media, Tau confirmed that the government had accepted many of the World Bank’s recommendations and was aligning them with its broader industrial strategy. “We see SEZs as a critical part of the industrialisation pathway for South Africa,” he said. Rather than setting arbitrary investment targets, Tau said the government wants SEZs to become catalysts for broader economic development, generating opportunities throughout supply chains and creating value beyond the zones’ boundaries. “It is about the supply chains, the suppliers that come into the industries in the SEZs. It is about value chains that are created,” Tau said. That vision closely aligns with TASEZ’s development model. The Tshwane-based SEZ has consistently focused on expanding local procurement, developing small and medium-sized enterprises, investing in workforce skills, and creating an automotive ecosystem capable of competing internationally. As South Africa prepares for the transition towards new energy vehicles and deeper participation in the African Continental Free Trade Area (AfCFTA), TASEZ is increasingly positioned to support regional manufacturing and export growth. Throughout the two-day conference, delegates are expected to discuss strengthening SEZ infrastructure, financing industrial development, expanding regional value chains, and unlocking export opportunities through the AfCFTA. The programme also includes export masterclasses, investor discussions, the inaugural SEZ Achievement Awards, and the presentation of new investment commitments and partnership agreements. For TASEZ, the conference represents more than an opportunity to showcase its achievements. It offers a platform to demonstrate how a strategically planned automotive SEZ can accelerate industrialisation, attract investment, and build resilient manufacturing value chains, precisely the role government envisages for South Africa’s next generation of economic development.

World Bank study backs SA’s Special Economic Zone model as TASEZ emerges as flagship of industrial growth

News / By Tasez

By Mandla Mpangase South Africa’s Special Economic Zone (SEZ) programme has received a significant vote of confidence from the World Bank, with a new study concluding that the country possesses the infrastructure, legal framework and institutional capacity required to build one of the world’s leading SEZ programmes. The findings have been welcomed by the Minister of Trade, Industry and Competition, Parks Tau, who said the report affirms the government’s long-term industrialisation strategy and provides a roadmap for strengthening the country’s network of Special Economic Zones. The World Bank study found that South Africa’s SEZ programme has a solid policy and governance foundation but identified opportunities to improve coordination, increase investment attraction, deepen supplier development and strengthen monitoring and evaluation systems. It also recommended greater collaboration between national, provincial and municipal governments to maximise the economic impact of the zones. Speaking after receiving the report, Tau said the government was encouraged by the findings, noting that South Africa had laid the foundations for a globally competitive SEZ ecosystem. “The study has found that South Africa has the infrastructure, legal framework and institutional capacity to build a leading Special Economic Zone programme,” Tau said, adding that the recommendations would assist the government in refining policy and improving implementation. The minister described the country’s SEZ programme as one of the government’s most important industrial policy tools for attracting investment, expanding manufacturing capacity, creating employment and increasing exports. He said the World Bank’s recommendations align with the government’s broader objective of accelerating industrialisation and building regional value chains. TASEZ illustrates the model in practice Among South Africa’s SEZs, the Tshwane Automotive Special Economic Zone (TASEZ) has become one of the clearest examples of what the World Bank’s findings seek to encourage. Established adjacent to Ford South Africa’s Silverton Assembly Plant in Pretoria, TASEZ has evolved into one of the country’s largest automotive manufacturing hubs and has become central to South Africa’s automotive export strategy. The zone has already demonstrated the economic impact that well-planned industrial infrastructure can deliver. Phase One of TASEZ contributed approximately 1% to South Africa’s GDP during its construction phase, while creating more than 6 000 construction jobs. Since becoming operational, the zone has generated more than 3 400 permanent direct jobs, with thousands more supported across supplier industries and logistics value chains. The development has also channelled more than R1.7-billion in procurement opportunities to South African small businesses while helping local manufacturers integrate into global automotive supply chains. TASEZ is home to numerous component manufacturers supplying Ford’s expanded production programme and is expected to play an even larger role as South Africa transitions towards new energy vehicles and higher levels of local component manufacturing under the South African Automotive Masterplan 2035. Its dedicated Training Academy, developed in partnership with technical colleges and universities, is also addressing one of the challenges identified in the World Bank study—building the skilled workforce required to support advanced manufacturing and industrial growth. Industrial policy delivering measurable results The World Bank’s findings arrive as South Africa’s SEZ programme continues to expand. According to the Department of Trade, Industry and Competition, the country’s network of Special Economic Zones has attracted hundreds of operational investments worth more than R31-billion while supporting tens of thousands of jobs across manufacturing, logistics, agro-processing and technology industries. For South Africa, the report reinforces the importance of maintaining industrial infrastructure capable of competing internationally for investment while supporting domestic manufacturing capabilities. For TASEZ, the findings provide further evidence that the zone represents more than a successful automotive project – it has become a practical demonstration of how modern Special Economic Zones can drive industrialisation, attract global manufacturers, strengthen local supply chains and contribute meaningfully to national economic growth. As the government considers the World Bank’s recommendations, TASEZ is likely to remain one of the benchmark projects that inform the next phase of South Africa’s industrial development strategy.

South Africa’s auto industry holds advantage in Africa, Says Minister Tau

News / By Tasez

By Mandla Mpangase South Africa’s automotive industry continues to anchor the country’s manufacturing capacity and offers a “unique competitive advantage” on the African continent, despite facing significant global and domestic headwinds. This was the message from Minister of Trade, Industry and Competition, Parks Tau, addressing delegates at South Africa Auto Week 2025, hosted by naamsa (The Automotive Business Council) in Gqeberha from 1–3 October. Tau said that while the sector has weathered one of its most challenging periods over the past nine months, it remains one of the cornerstones of South Africa’s economy. “In 2024, the industry contributed 5.2% to GDP and accounted for 22.6% of total manufacturing output. It provides nearly 500 000 formal jobs across assembly, components, retail and services, while supporting around one million livelihoods,” he told delegates. New markets and partnerships Tau highlighted fresh opportunities emerging on the continent and beyond. Following recent engagements in Saudi Arabia and Nigeria, he said South African component manufacturers could partner with counterparts in those countries to expand their footprint. “We’re prepared to allow African investors to partner with our local companies and create manufacturing capacity in those markets. It is an opportunity we must take advantage of,” Tau explained. At the same time, global OEMs operating in South Africa have committed to transitioning from semi-knockdown to complete knockdown production, deepening local manufacturing capacity. “Our duty is to work with these companies to ensure they become part of the local production base, taking advantage of South Africa’s skills and positioning the country as a platform for access to African markets,” Tau added. Transition to new energy vehicles The minister stressed that the industry is at a critical “inflection point” as global markets accelerate their shift away from fossil fuel vehicles towards new energy vehicles (NEVs). With major export destinations such as the European Union and the United Kingdom moving to ban new petrol and diesel vehicles from 2035, South Africa must adapt or risk losing market share. Already, the shift is underway: in 2024, South Africa recorded 15 600 new energy vehicle sales, representing 3% of the local market. The sector also attracted R12-billion in new investment for NEV-related manufacturing. Government has introduced measures to support this transition, including a 50% tax deduction for qualified NEV investments, partnerships with universities and research institutions, and strategies to localise production of critical inputs such as battery materials. “This is not just an industrial project,” Tau said. “It is about positioning South Africa at the heart of the global mobility revolution, not as a taker of technology, but as a maker. If we succeed, we will safeguard exports, create jobs, and place Africa at the forefront of clean mobility solutions.” Africa as an engine of growth Africa has emerged as a key market, with the continent becoming South Africa’s second-largest export destination in 2024. Vehicle exports into Africa grew by 12.4% year-on-year to R48.1-billion. The African Continental Free Trade Area (AfCFTA) is expected to further unlock opportunities, from reducing logistics costs to enabling vehicle assembly across the continent. Beyond vehicles, Tau noted, it could also drive mineral beneficiation, particularly for critical minerals such as cobalt, graphite, and lithium essential for the NEV transition. “Together, Africa can build a battery industry that reduces dependence on imports and positions the continent as a hub for clean mobility,” he said, adding that South Africa is leading the development of an African automotive hub that could align policies and attract investment. In closing, Tau emphasised that South Africa’s auto sector, with its industrial depth and mineral wealth, is uniquely positioned to lead Africa’s role in the global energy transition. “The automotive sector has been at the heart of our industrial story for more than a century. Today, it stands at a defining moment. “Its transition to new energy vehicles will define our relevance in a low-carbon world, while its integration into Africa’s free trade area positions us as leaders on the continent,” he said. “If we seize this opportunity, we will not only secure South Africa’s competitiveness but also place Africa at the forefront of the global mobility revolution.”

SA’s automotive sector can model African industrial resilience, says Minister

News / By Tasez

By Mandla Mpangase The annual Naacam Show takes place at a defining moment for the South African automotive sector, which is facing intersecting challenges that demand collaboration. With these words, Minister of Trade, Industry and Competition, Parks Tau, began his assessment of the automotive manufacturing sector in a keynote address to the Naacam audience in Gqeberha on 13 August 2025. This year’s show brings together automotive component manufacturers, public and private sector stakeholders, and service providers to foster collaboration, with the aim of galvanising the industry around the goals outlined in the South African Automotive Master Plan 2035. The automotive manufacturing sector is the cornerstone of South Africa’s manufacturing economy, contributing 5.2% to the country’s gross domestic product and 22.6% of the country’s industrial output. Despite these significant numbers, the industry faces several interconnected challenges, the minister noted. “Yet within these challenges lie transformative opportunities to redefine and leverage our global competitiveness.” The minister went on to urge all stakeholders to unify their actions across three pillars: on localisation, innovation, and inclusive transformation. Urgent challenges Although the industry employs 115 000 South Africans directly, with over 80 000 in component manufacturing alone, it faces the stark reality that domestic sales of locally produced vehicles plummeted to 515 850 units in 2024, far below the South African Automotive Master Plan 2035 (SAAM) target of 784 509. In addition, Minister Tau noted: “Importantly, 64% of vehicles sold here are imports, eroding local production scales.” Local content remains stagnant at 39%, well short of the 60% target, he said, adding this was at a time when United States tariffs are impacting significantly on the country’s R28.7-billion automotive exports. These pressures have triggered 12 company closures and over 4 000 job losses in two years. The erosion of the industrial value of the sector is exemplified by recent suspensions at Mercedes-Benz and other original equipment manufacturers. The path forward: Strategic imperatives “Localisation is not merely policy compliance, it is existential,” Minister Tau said. “A 5% increase in local content would unlock R30-billion in new procurement, dwarfing the R4.4-billion US export market.” However, to achieve this, “we must act collectively to address some of the bottlenecks to growth”. With this in mind, the Department of Trade, Industry and Competition is reviewing the Automotive Production Development Programme (ADPD) as a comprehensive way of responding to the challenges the sector is facing, but also to ensure regular growth in the sector meets the goals of the SAAM. Some of these reforms include the incentive structure and shifting duty credits to reward manufacturing instead of assembly credits. “Our critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value new energy vehicle components like fuel cells and batteries.” Digitisation, decarbonisation, and diversification – global competitiveness hinges on embracing disruption “At the dtic, we have been engaged on a path of developing a new industrial policy which focuses on decarbonisation, digitisation, and diversification. “As Naacam notes, carbon has become ‘part of the cost of doing business and increasingly, part of the value too’.” As the globe shifts to new energy vehicles and competition from China, it is crucial that South Africa scale new products such as e-axles and thermal systems, and markets, particularly under the African Continental Free Trade Agreement. Referring to development around new energy vehicles, the minister reported that amendments of the automotive production and development programme phase 2 legislative framework for the inclusion of electric vehicles and associated components have been completed. In addition, the relevant amendments to the existing Automotive Investment Scheme (AIS) guidelines are being finalised to align with APDP2 amendments and the energy vehicle legislative framework. “The Taxation Laws Amendment Act, gazetted on 24 December 2024, introduces a 150% capital allowance for qualifying investments in energy and hydrogen vehicle production. It covers assets such as buildings, plant, and equipment brought into use between 1 March 2026 and 1 March 2036.” A critical minerals strategy and battery value chain master plan are also being developed. A comprehensive skills gap analysis was completed under the energy vehicles skills workstream. Curricula and certification programmes are now being developed with Tshwane University of Technology, Cape Peninsula University of Technology, Durban University of Technology, and Unisa. A pilot project involving 100 students is expected to be rolled out in Q1 of 2026 once the academic materials are finalised. Transformation: Scale, skills, and equity “We have walked a long journey with the automotive sector on transformation. It therefore goes without saying that inclusion drives growth.” SAAM’s target of 130 new black-owned manufacturers is advancing, with 26 black-owned small, medium, and micro enterprises (SMMEs) exhibiting at the 2025 Naacam Show. However, the pace needs to be picked up. “To this end, we are hopeful that the industry will support the endeavour of the Transformation Fund that we are pursuing at the dtic with the view to enhancing overall transformation through Enterprise and Supplier Development (ESD) funds.” The minister added: “We need to accelerate skills development to ensure that we prepare our labour force for the dramatic changes that artificial intelligence will bring into the sector.” The government is also working hard to eliminate compliance burdens and reduce red tape, which inhibits investment into the country’s automotive sector. “Our policy response is accelerating, and we plan on introducing an Omnibus (General Laws Amendment) Bill, which looks to fast-track high-impact investments and projects within 90 days.” In addition, the government is looking at the impact of imports into the country and the impact they are having on local production. “We want to grow the sector, so our first option must not be to wield a stick but rather offer a carrot to these companies to attract more investment into the country, thereby increasing the value-add of particularly our component manufacturers.” Minister Tau also encouraged the industry to accelerate collaboration. “OEMs need to continue to honour local procurement targets and mentor and invest in SMMEs.” Tier 1 Suppliers must drive equity partnerships and Tier 2/3 development. “Naacam’s

‘Vision with action can change the world’

News / By Tasez

It is fitting, in a month where the world remembers former president Nelson Mandela, that the Minister of Trade, Industry and Competition, Parks Tau, opened his budget vote address with a quote from Madiba: “Action without vision is only passing time. Vision without action is merely day-dreaming. But vision with action can change the world.” These words reverberate within the Tshwane Automotive Special Economic Zone’s core, sitting at the heart of the special economic zone’s (SEZ) ethos. Speaking in Parliament on 16 July 2024, Minister Tau noted that the words also echo the country’s aspirations to build a dynamic, industrial and globally competitive South Africa that is transformed, inclusive and equitable. This is “anchored on industrialisation, transformation, job creation and building a capable and developmental state”. The minister emphasised the importance of manufacturing-led growth. “Manufacturing creates jobs in upstream and downstream sectors,” Tau explained, adding that these jobs were typically permanent and paid decent wages, with workers able to access to skills development and career path opportunities. Instruments such as the South African Automotive Masterplan are crucial; with their focus on supporting localisation, increasing investment, and creating and retaining jobs. “We have industrial capabilities as a country,” he added. The Department of Trade, Industry and Competition (the dtic) would, in identified industries, work closely with relevant state-owned entities and industry to support local manufacturing of key products and to create jobs. Growing the export markets Of importance to TASEZ, is the fact that the minister identified the need to expand and improve exports. South Africa’s automotive sector already exports the bulk of the vehicles manufactured here. In May 2024, naamsa noted that “record high vehicle exports ensured that the automotive industry outperformed the rest of the manufacturing sector” last year. “The export value of vehicles and automotive components increased by R43.5-billion, or 19,1%, from the R227.3-billion in 2022 to a record R270.8-billion in 2023, comprising 14,7% of total South African exports.” Naamsa noted the export performance included “record exports to all major regions, including the European Union, Africa, the Southern African Development Community, and North America”. Minister Tau pointed out that South Africa’s location at the tip of “the second-fastest growing region in the world”. To reduce a dependence on a small domestic market, “the dtic will implement new export measures, coupled with expanding the current measures and improving their effectiveness” and will work towards expanding its export footprint through BRICS+ (Brazil, Russia, India, China,Iran, Egypt, Ethiopia and the United Arab Emirates), the African Continental Free Trade Area (AfCFTA), the African Growth and Opportunity Act (AGOA) partnership with the United States, and the Economic Partnership Agreement with the EU. Turning to SEZs, the minister reminded parliament that the reason the country had set up SEZs was “to expand economic activity to under-developed parts of South Africa. There are many benefits to this including, creating jobs closer to where our people live and thereby reducing the cost burden poor people carry.” There was no logical or economic rationale for forcing people to live far from their families in increasingly crowded living spaces. “Spatial equity is therefore, a non-negotiable.” Referring to the 11 SEZs established so far, the minister noted: “These SEZs have generated investments amounting to R19.6-billion. In addition, these SEZs provide an on-going revenue stream to national government through ongoing corporate, PAYE and VAT payments. These contributions to tax revenue across over 100 firms located in SEZs far outweigh the initial establishment costs.” Like TASEZ, which is located between Eerstrust, Mamelod and Nelmapius, South Africa’s industrial parks are often located in or adjacent to townships. And these industrial parks provide jobs and incomes to people from the neighbouring townships. “We, therefore, encourage private-sector participation in the industrial parks, in order to assist to improve operations and facilities, and encourage private sector investment.”