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South African Automotive Master Plan

Gauteng charges ahead with Africa’s green mobility future

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Gauteng is looking to secure its place on Africa’s map in terms of the production of New Energy Vehicles (NEVs), setting an agenda that will see a green transport revolution across the continent. Under the leadership of Gauteng Department of Economic Development, via the Gauteng Growth and Development Agency (GGDA), the province is translating big ideas into reality; from policy to production and from vision to economic reality. In September 2025, Gauteng MEC for Economic Development and Finance Lebogang Maile laid the foundation in an address at a dialogue with the automotive industry. There, he outlined the province’s ambition to turn Gauteng into the hub of Africa’s automotive industry – and NEVs have to play an important role in this. Gauteng already accounts for a third of the country’s automotive manufacturing output. In 2024, the automotive industry contributed 5.2% towards South Africa’s GDP, with 110 000 direct jobs – 33 154 in the original equipment manufacturers and 81 860 people employed by component manufacturers. It is also home to three original equipment manufacturers (OEMs), BMW, Ford and Nissan – all based in the City of Tshwane – as well as automotive development hubs such as the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). Together, Gauteng’s OEMs produced 1.8 million vehicles between 2014 and 2023, accounting for 32.8% of South Africa’s vehicle production, and, according to the naamsa (the Automotive Business Council), Gauteng’s automotive sector is expected to gain momentum, especially with the establishment of the Tshwane Automotive City. Making sure the vision becomes concrete, the GGDA, along with the AIDC and TASEZ, is hosting the 2025 NEV Summit to drive Gauteng towards a green automotive economy, providing insights into trends and innovations across the NEV sector. A strong manufacturing sector For decades, South Africa has powered Africa’s automotive industry. Yet the global automotive landscape is shifting rapidly. The European Union’s carbon neutrality commitments are reshaping trade and market access, making low- or zero-emission vehicles essential for competitiveness. NEVs are no longer optional, they are essential to South Africa’s continued participation in global markets and will play a significant role in meeting the target set in the South African Automotive Master Plan (SAAM 2025) to manufacture 1% of the global automotive output. Against this backdrop, the NEV Summit will unite manufacturers, investors, policymakers and innovators to accelerate South Africa’s NEV transition. It is where strategies from the SAAM 2035 and Electric Vehicle White Paper move from the drawing board to the production line. As South Africa’s industrial heartland, Gauteng – which produces a vehicle every three minutes – offers a complete ecosystem with world-class logistics, skilled labour, top universities, and a strong innovation network that is capable of driving the green mobility revolution forward. Through its focus on localisation, battery manufacturing, and value chain integration, Gauteng offers Original Equipment Manufacturers (OEMs) and investors a ready-made base for the NEV industry. Gauteng’s proactive approach positions South Africa as both compliant with international climate goals and competitive within the global market. Sustainability is no longer a nice-to-have; it is now a core driver of industrial success. Building skills for the future The shift to NEVs also demands new skills – from battery technology to software development and recycling innovation. Gauteng’s education and training institutions, supported by the GGDA, AIDC and TASEZ, are already preparing the workforce for this next-generation economy. The province is not only building factories, it is building people, ensuring that the transition is inclusive and sustainable. Gauteng’s ambition extends beyond South Africa’s borders. With Africa’s rich reserves of lithium, cobalt, and manganese – critical for battery production – the province aims to localise value-add and establish itself as the gateway for Africa’s NEV value chain. This also fits neatly in the target set in the SAAM 2025 to raise localisation to 60% by the middle of the next decade. By creating a connected network of automotive and energy hubs across the continent, Gauteng is laying the groundwork for Africa to lead the continent’s green transition. The NEV Summit 2025 will showcase how Gauteng is driving this transition, demonstrating that green growth and industrial expansion are not opposites, they are on the same route.

Manufacturing has the potential to transform the economy and create jobs

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By Mandla Mpangase Expanding manufacturing is not merely a desirable goal for Africa; it is an essential foundation on which the continent’s economic transformation, job creation, and long-term prosperity depend. This strong message was shared by Gauteng MEC for Economic Development, Lebogang Maile, at the Manufacturing Indaba 2025, taking place at the Sandton Convention Centre in Johannesburg. “This year’s gathering takes place under complex global economic and political realities where the African continent, and the entire global south, must re-think its place in the geo-political landscape,” the MEC said. “Re-thinking our place in this landscape also necessitates that we re-think how we are managing our economies and trade relationships,” Maile said, adding: “It is becoming increasingly evident that the future of our continent lies in our ability to strengthen collaborations.” The message resonates strongly with the Tshwane Automotive Special Economic Zone (TASEZ), which has set out on a mission to be a catalyst for employment, transformation, and socio-economic development and industry growth by being a node attracting automotive suppliers and automotive manufacturers, assemblers and supporting services. The MEC noted that agriculture and raw material exports had long been the backbone of African economies; the future lies in a sector that has fuelled the rise of every modern economy: manufacturing. “The expansion of manufacturing is not merely a desirable goal for the continent. It is an essential foundation upon which Africa’s economic transformation, job creation, and long-term prosperity depend.” The manufacturing sector’s ability to absorb large numbers of workers, foster innovation, and build complex value chains, makes it a critical pillar for sustainable development, Maile added. The South African Automotive Master Plan Something that is important to the TASEZ efforts to support the South African Automotive Master Plan 2035, is that of localisation and by extension, beneficiation of materials that are mined in the country. The master plan sets out several priorities to deliver on its vision of creating “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”. Included in the priorities is increasing local content used in manufacturing by 60% by 2035 – critical to this is the ability to beneficiate local minerals for use in manufacturing. As Maile noted, “Exporting raw materials without adding value reinforces economic dependence on foreign nations that process and manufacture these materials for profit.” Manufacturing offers an opportunity to move up the value chain, diversify economies, and reduce dependence on volatile international markets. “The continent’s demographic dividend could be the most important instrument in defining the future of the manufacturing sector.” Manufacturing is also uniquely placed to provide the scale and diversity of jobs required for Africa’s youth – Africa has a young population that is growing. It is expected that the continent’s population will double by 2050 to reach 2.5 billion people, with the majority being under the age of 25. “Manufacturing can offer employment across a spectrum of skill levels, from low-skilled assembly to high-skilled engineering. Moreover, manufacturing jobs tend to offer higher wages, better job security, and more opportunities for advancement compared to informal and even agricultural work.” Adding value – and jobs Value addition not only increases export revenues but also fosters the development of supporting industries such as packaging, transportation, marketing, and financial services. These interlinked sectors create a multiplier effect, generating jobs and boosting incomes across the economy. “In the Gauteng Province, we see the value of our investment in the manufacturing sector,” Maile said. It is the largest sector in the provincial economy, employing more than 500 000 people, and is also the biggest in South Africa, contributing more than 33% to the gross domestic product. Manufacturing is also a powerful conduit for technology transfer. “As African firms engage in manufacturing, they gain access to new machinery, production processes, and management techniques.” Partnerships with foreign firms and integration into global value chains further accelerate the transfer of knowledge and skills. At the moment, Africa’s share of global manufacturing output remains less than 2%. “But the continent’s potential is enormous,” Maile said. The African Continental Free Trade Area, which seeks to create a single market of over a billion people, offers an unprecedented opportunity for manufacturers to achieve economies of scale, access new markets, and increase competitiveness. “With the right policies, African manufacturers can integrate into global value chains, supplying not only regional markets but also Europe, Asia, and the Americas.” Despite its promise, the development of manufacturing in Africa faces significant hurdles, including inadequate infrastructure, unreliable energy supplies, limited access to finance, bureaucratic red tape, and skills gaps. “Addressing these challenges requires coordinated action by governments, the private sector, and international partners.” Key is investing in infrastructure. Reliable roads, ports, energy, and digital networks are essential for competitive manufacturing. “We must also prioritise improving the business environment. Streamlined regulations and transparent governance attract investment and foster entrepreneurship.” Skills are needed Another message from Maile hit home for TASEZ: making the building of human capital a key priority. TASEZ has launched its training academy to provide business-related skills to small, medium, and micro enterprises (SMMEs) as well as technical skills to workers who will be dealing with a changed automotive manufacturing sector that is focused on new energy vehicles. “Education and vocational training tailored to industry needs will ensure a skilled and adaptable workforce,” Maile told the Manufacturing Indaba. In addition, regional integration is one of the most critical priorities if the continent is to realise its manufacturing potential. “Strengthening trade ties and harmonising regulations across borders is crucial,” the MEC said. “Regional integration significantly boosts manufacturing economic development by expanding markets, fostering specialisation, and promoting innovation and efficiency. It allows countries to overcome limitations of smaller domestic markets, creating larger customer bases and facilitating economies of scale in manufacturing.” Integration also encourages specialisation within regional value chains, leading to increased efficiency and competitiveness. In his conclusion, the MEC reminded the audience: “The choices made today will determine whether the

Collaboration is needed to gear up to new auto future

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

TASEZ Training Academy lauds new graduates

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With the manufacturing sector in constant change as the Fourth Industrial Revolution takes hold, the Tshwane Automotive Special Economic Zone, through its’ training academy, is making sure that workers are equipped for this future. The TASEZ Training Academy celebrated the graduation of 163 learners, presenting them with certificates of achievement on Thursday, 15 August 2024. With the graduates demonstrating exceptional dedication and skill in their training, the event was seen as an opportunity to recognise the learners’ hard work and commitment. The celebration showed the special economic zone’s commitment to providing much-needed skills development in a rapidly changing automotive industry. “Now is the time to lead a skills revolution in this country,” says chairperson, Lionel October TASEZ, adding that the TASEZ’s academy was set up to close the skills and technology gap. “As articulated in the South African Automotive Master Plan, the industry needs to be expanded, becoming more inclusive,” says CEO, Dr Bheka Zulu, adding that “a skilled, agile and adaptable workforce is essential to achieve this.” TASEZ, Africa’s first automotive city, is ideally placed to make an impact on inclusive jobs creation and upskilling. “TASEZ is delivering on its vision to be the benchmark for special economic zones in South Africa while contributing to the growth of the automotive sector,” says Dr Zulu. As the automotive industry is gearing up for production of new energy vehicles and for exports to markets that have set targets to reach a carbon neutral environment, South African manufacturers will need to move swiftly to embrace Fourth Industrial Revolution skills. It is against this backdrop that the Automotive Master Plan has set a number of ambitious targets to be met by 2035, including: The automotive industry is one of South Africa’s most important economic sectors, contributing 4.3% to the country’s gross domestic product. The industry is also the country’s fifth largest export sector accounting 18.1% of total exports. However, the sector – as the country – faces the intense challenge of unemployment alongside an unskilled labour force. Figures are disheartening, with Q2 numbers indicating the highest unemployment rate since 2022. Currently South Africa’s official unemployment rate stands at 33.5.9% for the second quarter of 2024, up from 32.9% for the first quarter of 2024, according to StatsSA. The expanded unemployment rate, which includes those who are no longer actively looking for employment, increased to 42.6%, up from the first quarter figure of 41.9%. These numbers represent the 8.4 million people who are now unemployed, with more than 76% of those having been without a job for more than a year. A focus on skills development and training has never been so important, notes Dr Zulu. “Skills development has the potential to turn the tide against unemployment,” he adds.

TASEZ celebrates group of learners

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The Tshwane Automotive Special Economic Zone (TASEZ) celebrated the achievements of 134 learners who graduated from a training course on organisational health and safety on 14 May 2024. The training, under the guidance of TASEZ’s safety, health and environmental manager Patricia Mandleni, is an important part of the special economic zone’s commitment to broaden economic participation by promoting small, micro, and medium sized enterprises and co-operatives, while promoting skills and technology transfer. Learners were called to the stage, where they were presented certificates by TASEZ CEO Dr Bheka Zulu. “It is important that TASEZ supports training of people in the automotive manufacturing and construction sectors as well as individuals from our neighbouring communities,” Dr Zulu noted. “We are driven by helping make sure that the South African Automotive Masterplan 2035 is a success, as well as helping develop a skilled workforce for our ever-changing industry which will need different high-level skills that embrace the Fourth Industrial Revolution,” he added. “We are determined to play a role in shaping the future of automotive excellence.” SAAM 2035 calls for transforming the industry and has identified six pillars for growth: According to the recently published Industrial Policy and Strategic Review – Transforming Vision into Action: Charting South Africa’s Industrial Future the rapid scaling-up of infrastructure spending should be a top priority, with specific focus on improving electricity and freight transport for established businesses, and to qualitatively upgrade infrastructure to support economic activities in working-class communities, especially by providing industrial, commercial and cultural centres. Training is an important aspect of transforming the economic landscape, as the country’s industrial development increases its pace and reach, ensuring the realisation of the National Development Plan’s Vision 2030, Dr Zulu added. The NDP identifies artisans and SMMEs as key elements in driving the economy through infrastructure development and manufacturing. The NDP has set a target of producing 30 000 artisans a year by 2030, with the country currently seeing 20 000 artisans qualify annually.