Special Economic Zone Archives - Page 2 of 9

Budget 2026 signals infrastructure push and investment drive to unlock growth

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.

Premier puts jobs at centre of Gauteng’s growth drive in his State of the Province Address

News / By Tasez

By Mandla Mpangase Gauteng Premier Panyaza Lesufi has placed job creation at the heart of the province’s economic agenda, announcing a pipeline of investments and infrastructure programmes expected to support hundreds of thousands of employment opportunities across sectors. Delivering the 2026 State of the Province Address at the Nasrec Expo Centre, Lesufi adopted a more urgent and delivery-focused tone, stressing that Gauteng’s success will ultimately be measured by how effectively growth translates into jobs, particularly for young people. “The economic heartland of South Africa must never stop beating,” he said, linking infrastructure reliability, investor confidence and industrial expansion directly to employment creation. Investment into employment The Premier revealed that Gauteng has secured R27-billion in foreign direct investment over the past year, while R73-billion of projects announced at the inaugural Gauteng Investment Conference have already moved into implementation. These projects alone are expected to create about 114 000 jobs across manufacturing, logistics, energy and services. In total, confirmed investments across sectors could support roughly 250 000 employment opportunities, Lesufi said, describing the pipeline as one of the largest provincial job-creation drives in recent years. Major projects with significant employment potential include: Lesufi emphasised that these investments are not isolated announcements but part of a deliberate reindustrialisation strategy aimed at expanding Gauteng’s productive economy. TASEZ and industrial zones as job engines Special Economic Zones remain central to this strategy, with the Tshwane Automotive Special Economic Zone (TASEZ) – the venue for the 2025 State of the Province Address – highlighted as a flagship project for industrial job creation. The Premier confirmed that TASEZ has secured R1.61-billion in new investment and remains on track to deliver 4 000 construction jobs during its Phase 2 expansion. The automotive hub is also expected to generate long-term manufacturing employment through localisation and supplier development, reinforcing Gauteng’s position in global automotive value chains. Other SEZ initiatives, including the proposed Vaal SEZ and Tambo Springs logistics hub, are expected to further expand industrial employment and support small business participation in supply chains. Infrastructure unlocking employment Lesufi repeatedly linked infrastructure investment to job creation, arguing that reliable services are essential for both attracting investors and enabling economic participation. Following January’s water crisis, Gauteng has launched a R760-million upgrade programme in Johannesburg, alongside new reservoirs and storage projects across municipalities. Beyond improving services, these projects create construction employment and support industrial activity. The province will also establish a Bulk Infrastructure Agency to coordinate delivery across municipalities, a move intended to accelerate development projects and unlock additional private-sector investment. Transport infrastructure is another employment lever. Gauteng has already paid more than R9-billion toward e-toll debt to enable road maintenance and upgrades, while expansion plans for the Gautrain network and a proposed Gauteng-Limpopo high-speed rail link could generate thousands of construction and operational jobs. “These investments are about economic mobility – connecting people to opportunities and opportunities to markets,” Lesufi said. Community-level job programmes Beyond large infrastructure projects, the province is expanding direct employment programmes targeting unemployed youth. The Nasi iSpani initiative, supported by a R1.5-billion national Labour Activation Programme investment, is expected to unlock more than 30 000 training and workplace opportunities. Gauteng will also employ 2 500 young people to repair public infrastructure, including plumbing, paving and maintenance in communities. Refurbishment of 18 government buildings in Johannesburg, valued at R8-billion, will create more than 2 500 construction jobs over the next 30 months. Tourism, logistics and new sectors Tourism recovery is also contributing to employment growth. International arrivals increased to 3.8-million, generating R41-billion in revenue and supporting jobs across hospitality, transport and entertainment. Meanwhile, sector-focused “action labs” covering industries such as manufacturing, green economy and logistics will be relaunched in March to accelerate investment into high-growth sectors and convert plans into bankable projects that create jobs. Jobs as the measure of success Lesufi acknowledged ongoing risks, including infrastructure crime, illegal mining and municipal instability, but said declining crime statistics and coordinated law-enforcement interventions are improving the investment climate. He stressed that economic growth must translate into tangible improvements in people’s lives through employment, housing, healthcare and education. The Premier’s message was clear: Gauteng’s development strategy is now firmly centred on job creation, driven by infrastructure expansion, industrial zones such as TASEZ and partnerships with the private sector. “Our responsibility,” Lesufi said, “is to ensure that investment becomes jobs – and jobs become dignity.”

President doubles down on industrialisation, manufacturing and green growth in SONA 2026

News / By Tasez

By Mandla Mpangase President Cyril Ramaphosa used his 2026 State of the Nation Address (SONA) to place industrialisation, manufacturing and green growth at the centre of South Africa’s economic recovery agenda, outlining a sweeping strategy that positions the automotive sector – and hubs such as the Tshwane Automotive Special Economic Zone (TASEZ) – as catalysts for investment, jobs and technological transition. Speaking to a joint sitting of Parliament in Cape Town on 12 February 2026, President Ramaphosa said South Africa was entering a decisive phase in which it must pivot from exporting raw materials to producing high-value manufactured goods for global markets. “The biggest opportunity of all lies in green growth. We are pivoting our economy to be a leading supplier of the products which the world will rely on in decades to come,” he said. Manufacturing and green industrialisation The president confirmed expanded support for manufacturing, particularly export-oriented green industries such as fertiliser, jet fuel, chemicals and steel. For the automotive sector, the most significant announcement was the introduction of a 150% tax deduction for investment in new energy vehicles (NEVs) from March 2026, alongside government support for local battery production. This policy could accelerate investment in South Africa’s electric and hybrid vehicle value chain, with special economic zones such as TASEZ well-positioned to anchor new assembly lines, component manufacturing and battery-related industries. President Ramaphosa also highlighted R250-billion in international pledges to the Just Energy Transition Investment Plan, which will finance manufacturing, infrastructure and skills development – pillars for industrial hubs such as TASEZ that aim to integrate clean energy, logistics and advanced manufacturing. Critical minerals, beneficiation and the automotive value chain The president also underscored South Africa’s mineral endowment, with ore reserves valued at more than R40-trillion, and reiterated the government’s commitment to local beneficiation of critical minerals. This beneficiation push is expected to underpin domestic production of battery materials, catalytic converters, lightweight metals and other automotive components, strengthening localisation in zones like TASEZ. The Industrial Development Corporation’s R300-million investment in the Frontier Rare Earths Project was highlighted as a step towards building supply chains for lithium batteries and electronics – technologies increasingly integral to next-generation vehicles. Investment pipeline and industrial infrastructure President Ramaphosa said South Africa had secured R1.5-trillion in investment commitments through its first five investment conferences, with R600-billion already flowing into projects, including new factories and mines. Government is targeting R2-trillion in new investments over the next five years, with the next investment conference scheduled for 31 March 2026. Public infrastructure investment of more than R1-trillion over three years will underpin industrial growth, with energy, water, transport and digital infrastructure prioritised. Improved logistics, ports and rail corridors were flagged as critical to exporting manufactured goods from industrial zones such as TASEZ to global markets. Jobs, SMEs and inclusive industrialisation Job creation was framed as the ultimate goal of industrialisation. The president said if every small and medium enterprise (SME) employed one additional person, three million jobs could be created. Government will provide R2.5-billion in funding to 180 000 SMEs, extend R1-billion in guarantees, and prioritise women- and youth-led businesses. This is expected to support supplier development and localisation programmes linked to manufacturers operating in TASEZ and other SEZs. Public employment programmes will be expanded and better coordinated to provide skills development pathways into long-term industrial employment, particularly for young people and women. Skills development for a future automotive workforce Ramaphosa stressed that industrialisation depends on human capital, noting that a strong economy relies on a well-educated, capable and skilled population. The Youth Employment Service and South Africa Youth platform will be strengthened, while regulatory changes will make it easier for businesses to offer work experience opportunities. This could bolster talent pipelines for advanced manufacturing, engineering, robotics and electric mobility technologies in zones such as TASEZ. Protecting and transforming the automotive sector The president reaffirmed the government’s commitment to safeguarding and modernising the automotive industry, which employs hundreds of thousands of South Africans in high-quality jobs. Government is working with industry and labour to close tariff loopholes, protect domestic manufacturing and prepare the sector for the global shift to electric vehicles. TASEZ is well-positioned to play a central role in this transition by clustering OEMs, component manufacturers, logistics providers and research institutions. A strategic window for TASEZ and South Africa President Ramaphosa acknowledged persistent challenges, including unemployment and service delivery failures, but said energy reforms, rising investor confidence and infrastructure investment had created a critical opportunity for economic transformation. “We have a unique window of opportunity to translate these gains into sustained growth,” he said. For South Africa’s automotive sector and industrial platforms such as TASEZ, the 2026 SONA signals a renewed policy push towards localisation, electric mobility and high-value manufacturing, positioning the country to compete in global automotive value chains while driving jobs and inclusive growth at home.

SONA 2026: A TASEZ wish list for South Africa’s industrial reset

Thought leaders / By Tasez

By TASEZ CEO Dr Bheka Zulu As South Africa prepares for the 2026 State of the Nation Address by President Cyril Ramaphosa on 12 February 2026, the Tshwane Automotive Special Economic Zone (TASEZ) – Africa’s first automotive city – is hoping to see an emphasis being placed on putting manufacturing at the centre of the country’s economic strategy. Manufacturing remains one of the few sectors capable of creating large-scale employment, driving exports and anchoring technology transfer. Yet, despite its strategic importance, South Africa’s manufacturing sector continues to underperform relative to its potential, constrained by energy insecurity, logistics inefficiencies and policy uncertainty. Special Economic Zones (SEZs) are among the most effective tools available to reverse this trend. Zones such as TASEZ have demonstrated that targeted infrastructure, incentives and policy alignment can crowd in private investment and build globally competitive industrial clusters. SONA 2026 is an opportunity to scale this model. From a TASEZ perspective, there are several policy signals we would like to hear. First, a credible manufacturing growth pactSouth Africa needs a clear, time-bound commitment to manufacturing expansion, aligned with the Industrial Policy Framework, the Automotive Masterplan and the transition to new energy vehicles (NEVs). This should include measurable localisation and export targets, backed by regulatory certainty. Investors require predictability; industrial policy cannot shift with every political cycle. Second, a competitive SEZ incentive regimeSEZs compete globally. Countries such as Morocco, Vietnam and Egypt have built industrial bases by offering compelling fiscal incentives, streamlined customs processes and reliable infrastructure. South Africa must remain competitive. Enhanced incentives, faster approvals and dedicated industrial energy solutions would materially improve the country’s investment proposition. Third, explicit positioning of SEZs as anchors of the green and automotive transitionThe global automotive sector is undergoing a structural shift towards electrification, batteries and smart mobility. South Africa risks being locked out of future value chains if it does not act decisively. SEZs should be designated as production hubs for NEV (new energy vehicle) assembly, battery manufacturing and hydrogen-related industries, supported by targeted incentives and infrastructure. Fourth, localisation that delivers for MSMEsLocalisation policy must translate into real procurement opportunities for South African firms, particularly black-owned and township-based enterprises. Stronger localisation thresholds in public procurement, integrated with SEZ supplier development programmes, can help domestic firms integrate into global value chains rather than remaining peripheral participants. Fifth, infrastructure as an industrial enablerIndustrial policy without reliable infrastructure is aspirational at best. Manufacturing requires predictable electricity supply, efficient rail and port logistics, and high-quality digital connectivity. Commitments to stabilise industrial energy supply and modernise logistics networks would significantly improve South Africa’s industrial competitiveness. Sixth, blended finance to bring in private capitalIndustrial projects are capital-intensive and long-term. Development finance institutions can play a catalytic role by de-risking SEZ-based projects through blended finance structures. Public capital, concessional funding and private investment must be combined at scale to accelerate industrial development. Finally, a national skills pipeline for advanced manufacturingFuture factories require technicians, engineers and digital specialists. Coordinated partnerships between industry, TVET (Technical and Vocational Education and Training) colleges, universities and SEZs could position South Africa as a manufacturing talent hub on the continent. SONA 2026 comes at a defining moment. Global supply chains are fragmenting, the energy transition is reshaping trade patterns, and the African Continental Free Trade Area offers an unprecedented market for manufactured goods. South Africa has the industrial base, institutional capacity and geographic advantage to benefit – but only if policy ambition is matched by execution. SEZs such as TASEZ are platforms for a new economic narrative: one where South Africa builds, makes and exports at scale. If SONA 2026 delivers a bold and credible manufacturing and SEZ agenda, it could mark the beginning of a long-overdue industrial reset.

TASEZ CEO positions automotive city as engine for jobs, skills, and inclusive growth

News / By Tasez

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is emerging as one of South Africa’s most significant industrial infrastructure projects, with the potential to accelerate manufacturing growth, deepen localisation and drive inclusive economic participation, according to TASEZ CEO Dr Bheka Zulu. Speaking in an interview with Poort FM on Tuesday, 10 February 2026, Zulu said the special economic zone had become a critical growth engine for the City of Tshwane, Gauteng and the national economy, particularly through its role in supporting the automotive sector. “It brings an engine for growth, an engine for development and an engine for innovation,” Zulu said. “It has been a pillar of employment for the city, especially for communities such as Mamelodi and surrounding areas.” Boosting manufacturing and exports Zulu highlighted TASEZ’s role in supporting the expansion of automotive manufacturing, citing the Ford investment at the adjacent Silverton plant, which has increased production capacity and strengthened South Africa’s export footprint in more than 100 global markets. He said government and industry aim to raise South Africa’s share of global vehicle production to above 1%, which would require output of about 1.4 million vehicles annually. “Part of our role is to support OEMs that have been in this country for decades, and ensure increased capacity, sustainability and meaningful jobs,” he said. Africa’s first automotive city TASEZ markets itself as “Africa’s first automotive city,” a concept Zulu described as a fully integrated ecosystem combining industrial, residential and social infrastructure. “It’s about bringing industry closer to where people live and play,” he said, adding that the automotive city model includes training, services, affordable business infrastructure and incentives to support investors and workers. Zulu said the vision is to position Tshwane as a globally competitive automotive hub, leveraging South Africa’s long history in vehicle manufacturing and attracting new original equipment manufacturers (OEMs). Focus on meaningful jobs and STEM skills Zulu emphasised that job creation must be linked to skills development, particularly in science, technology, engineering and mathematics (STEM). “Meaningful jobs are permanent jobs that bring innovation and future development,” he said. TASEZ has established the TASEZ Academy to train and reskill young people from surrounding communities, working with sector education and training authorities (SETAs) and other institutions to align training with industry needs. SMME development and inclusive procurement Zulu said small, medium and micro enterprises (SMMEs) are central to TASEZ’s development model, with incubation, mentorship and enterprise supply development programmes designed to integrate local firms into the automotive value chain. He noted that TASEZ has set a minimum target of 30% procurement spend for SMMEs and aims for 60% township procurement in line with Gauteng’s Township Economic Development Act (TEDA) framework. “We’ve injected more than R2-billion into local SMMEs, and we are still growing,” he said, adding that procurement targets prioritise black-owned businesses, women, youth and people with disabilities. Driving transformation and localisation Zulu acknowledged that transformation in the automotive sector has been slow, particularly in localisation and black industrialist participation, but said TASEZ is guided by the South African Automotive Masterplan 2035. The sector aims to increase local content in vehicle production from around 30-40% to 60% and raise black participation in the industry, which remains below 3%. “It’s a competitive world, and we need all hands on deck, government, industry and communities, to reach these targets,” he said. Preparing for electric vehicles and new technologies Zulu said the global shift toward electric and new-energy vehicles presents both risks and opportunities for South Africa, urging industry and policymakers to adapt quickly. “The reality is that we need to wake up and embrace new energy vehicles, automation and green manufacturing,” he said, adding that TASEZ plans to roll out charging infrastructure and is seeking partners with innovative technologies. Message to youth and entrepreneurs In closing, Zulu encouraged young people and entrepreneurs to engage with TASEZ, bring innovative ideas and participate in skills programmes and supplier opportunities. “Don’t lose hope. We are your partner. Knock on our door with your ideas, and we will help you grow,” he said.

Why TASEZ, and SA’s other SEZs, should care about the 2026 World Economic Forum

Thought leaders / By Tasez

As the 2026 World Economic Forum (WEF) annual meeting unfolds in Davos, Switzerland, it presents an opportunity for the Tshwane Automotive Special Economic Zone (TASEZ) to gain strategic insights into global business trends, writes TASEZ CEO Dr Bheka Zulu. While some may view Davos as an elite gathering far removed from local development practices, the reality is that the decisions, discourses and partnerships fashioned at this global crossroads directly shape the economic terrain in which TASEZ operates. At its heart, the WEF’s theme this year, “A Spirit of Dialogue”, reflects a global recognition that in an increasingly contested and fragmented world, renewed cooperation across sectors is essential to unlocking growth, managing technological disruption, and building resilient societies. The 56th global gathering – a diverse mix of governments, industries and sectors – takes place from 19 – 23 January 2026. South Africa, which will be sending a delegation to the WEF, is taking the key message that the country is ripe for investment and ready to do business. Davos is where global growth blueprints are crafted One of the key pillars of discussion in 2026 is unlocking new sources of growth, an agenda TASEZ must align with as it seeks to attract investment, scale industrial capacity and foster innovation. At a time when global growth is projected to slow and trade dynamics are shifting, constructive dialogue on growth strategies becomes vital. TASEZ should care because the forum shapes narratives about where capital flows next – whether it is into manufacturing hubs in Africa, decarbonising industries, or smart-technology value chains. Strategic awareness and engagement with the WEF ecosystem enable TASEZ to position itself within these narratives rather than being shaped by them. Technology and the future of work are not just global issues; they are local necessities. At the heart of WEF’s agenda is the rapid reshaping of work and skills due to artificial intelligence and other frontier technologies. These trends are not abstract discussions. Nearly one in five jobs worldwide could change significantly in the next five years, and reskilling labour forces is central to global competitiveness. For TASEZ, this has direct implications for workforce development, educational partnerships, and industry-ready training programmes. Being plugged into these global conversations helps ensure that TASEZ’s talent pipeline matches investor expectations and technological realities, especially in automotive manufacturing, digital services, and green tech sectors. Public-private collaboration is no longer optional The WEF thrives on multistakeholder cooperation, bringing together governments, businesses, civil society and experts precisely because global challenges today do not have single-actor solutions. TASEZ’s success depends on forging alliances that transcend borders: with multinationals scouting for regional entry points, with development finance institutions seeking credible partners in Africa, and with governments looking to catalyse industrial nodes. What happens in Davos is not simply a talk shop; it is where ideas are mooted, and alliances are formed – and it provides for participation far beyond Davos through an open digital media experience, including live-streamed sessions and community engagement. Take, for example, how subnational delegations use the forum to showcase investment roadmaps and attract concrete commitments. Recent state delegations to Davos have used the platform to situate long-term visions in front of global investors. A changing geopolitical and economic order matters to local zones too. This year’s Davos opens against the backdrop of a shifting geopolitical order where trade tensions, fragmented cooperation, and contested norms are no longer fringe concerns. For South Africa and TASEZ, geopolitical shifts translate into supply chain volatility, changing tariff regimes, and new expectations for economic zones to support resilient, diversified manufacturing. Simply put, ignoring these macrotrends undercuts the zone’s ability to anticipate risk and opportunity. Finally, Davos offers lessons in governance and accountability, relevant for an institution like TASEZ striving to model excellence in public-private economic management. Even global institutions like the WEF have had to grapple publicly with leadership transitions and internal scrutiny, a reminder that credibility and ethical leadership matter deeply in today’s interconnected world. TASEZ’s interest in the 2026 World Economic Forum is neither cursory nor ceremonial. This global meeting encapsulates the forces shaping 21st-century economies – from innovation ecosystems to skills futures, from cooperative governance to investment flows. Ensuring that the engagement extends beyond Davos is crucial, particularly for South Africa’s economic growth trajectory. South Africa, and by extension its special economic zones, should be not only anchored in the global economic currents, but able to influence them in ways that benefit the country and the broader continent.

2025 – a year of resilience and recalibration

Thought leaders / By Tasez

It turns out that 2025 was a year that tested the Tshwane Automotive Special Economic Zone’s agility but also reaffirmed its strategic direction, writes acting executive of zone operations, Sibusiso Khuzwayo. As 2025 draws to a close, the Tshwane Automotive Special Economic Zone (TASEZ) continues to cement its position as one of South Africa’s leading special economic zones (SEZs) – an achievement built on resilience, collaboration, and a sharpened focus on sustainable industrialisation. Yet 2025 was anything but ordinary. The year placed TASEZ at the forefront of numerous conferences, industry engagements, and national conversations on automotive manufacturing, transformation, and economic development. These platforms allowed us to present TASEZ’s successes and the challenges we continue to navigate. They also reinforced the importance of capacitating TASEZ so that we not only meet our mandate but also deepen our impact on communities, stakeholders, and industry partners. Strong relationships Strengthening relationships with tenants was a key priority. Improved engagement has already laid the groundwork for future collaborations, particularly projects designed to uplift communities and micro, small, and medium enterprises (MSMEs). Industry-wide discussions on the future of the automotive sector, marked by technological shifts, supply chain pressures, and evolving investment landscapes, also prompted TASEZ to reassess its long-term strategy. We have had to rethink our tenant mix to ensure that TASEZ remains sustainable even as the automotive sector faces economic headwinds. Highlights of 2025 What stands out most during the year is a mix of organisational achievements and personal milestones. From an organisational perspective, TASEZ significantly expanded its collaboration footprint. Engagements with the National Skills Fund, universities, the CSIR (the Council for Scientific and Industrial Research), the AIDC (the Automotive Industry Development Centre), and the Gauteng Department of Economic Development strengthened the zone’s innovation ecosystem. These partnerships also supported TASEZ’s emerging e-mobility concept, positioning the SEZ as a future leader in new-energy technologies and skills development. As acting zone executive 2025 marked a number successful initiatives such as: These engagements helped us demonstrate what TASEZ does, why it matters, and how it can play an even bigger role in transforming the economy. More to do Despite the great strides already made, there is always more to do. First on the list is the need to further capacitate zone operations, ensuring the SEZ maintains its infrastructure, supports tenants effectively, and strengthens sustainability. Second is the need for improved collaboration across TASEZ’s internal departments. We cannot work in silos, but must support each other so that we deliver on our mandate in a way that benefits all stakeholders. Looking at TASEZ’s broader economic impact, it is clear that the organisation is making meaningful progress, particularly through Phase 2, which focuses strongly on supporting black industrialists. TASEZ has a tremendous opportunity to lead by bringing together funding institutions, OEMs, Tier 1 suppliers, aftermarket players, the National Empowerment Fund, and the Automotive Industry Transformation Fund. If we implement this effectively, it can serve as a model for other SEZs such as Dube TradePort, Richards Bay, and the AIDC. In addition, partnerships with the CSIR on research and innovation will further support TASEZ’s ambitions in industrialisation and advanced manufacturing. Looking forward From the perspective of zone operations, there are three key priorities for the coming year that will allow TASEZ to unlock more responsiveness, agility, and meaningful impact. Further capacitating departments to improve efficiency and service delivery; TASEZ is poised to play a transformative role in strengthening the South African economy by driving employment opportunities, empowering MSMEs, and equipping the workforce with future-ready skills. With its commitment to industrialisation, sustainability, and inclusive growth, Africa’s first automotive city continues to evolve as a catalyst for long-term national development – one that remains resilient even in the face of industry uncertainty.

2025 – A transformative year for TASEZ

Thought leaders / By Tasez

As 2025 draws to a close, it offers an important moment to reflect on the achievements, challenges, and defining developments that have shaped the Tshwane Automotive Special Economic Zone (TASEZ), writes TASEZ executive for infrastructure, Andile Sangweni. This has been a year of momentum, consolidation, and forward vision, and one that has reaffirmed our position as one of South Africa’s leading special economic zones (SEZs) while pushing the boundaries of what world-class infrastructure delivery can look like. This has indeed been a transformative year for TASEZ. We have not only upheld our position as one of the country’s most advanced and impactful SEZs, but we have also redefined excellence in infrastructure delivery. Despite various national and global challenges, Phase 1 milestones were successfully achieved, demonstrating the strength of our operational planning and the resilience of our development model. With Phase 2 now underway, our focus is shifting decisively toward breaking ground and embracing the next wave of industrial growth. This phase is not simply an expansion; it is a catalytic step in deepening South Africa’s manufacturing capabilities and strengthening the country’s role in the global automotive value chain. Heading into Phase 2 A central achievement of 2025 has been laying the groundwork for the next phase of TASEZ’s evolution. The defining highlight of the year has been our work on ensuring the seamless integration of new infrastructure with Phase 1 facilities. This preparation is more than a technical requirement; it is a strategic pointer to our ongoing growth trajectory. It is about investor confidence, job creation, and community impact. The readiness to commence Phase 2 represents a collective vote of confidence from our stakeholders. It also confirms that infrastructure remains the backbone of sustainable economic transformation. Ready to tackle any test The year has not been without its challenges. South Africa continues to grapple with issues that directly influence industrial performance: Our response to these pressures has been deliberate and solution-driven. We are advancing energy resilience through renewable integration, ensuring that future phases of the zone offer greater stability and sustainability. We are driving a skills revolution through strengthened partnerships with educational and training institutions through the TASEZ Training Academy, preparing young people for the advanced manufacturing jobs of the future. And we are sharpening our global edge by streamlining processes and enhancing investor support mechanisms. Amid these dynamics, TASEZ’s role in advancing South Africa’s industrial development has become even more pronounced. TASEZ is a catalyst for the country’s industrialisation ambitions. By hosting world-class manufacturers, the zone embeds advanced technologies, creates sustainable employment opportunities, and supports the development of resilient supply chains. Our work also contributes to economic diversification, reducing import dependency and positioning South Africa as a globally competitive producer. In every sense, TASEZ is shaping industries, futures, and communities—delivering impact far beyond our physical footprint. As we look ahead, 2026 must be a year defined by acceleration and bold action. Our priorities are clear: These commitments will ensure that TASEZ continues to set the benchmark for industrial excellence, innovation, and inclusiveness.

Milestones, meetings, momentum and meaningful growth: 2025, the year that was

News / By Tasez

As 2025 draws to a close, the Tshwane Automotive Special Economic Zone looks back on a year that truly defined Africa’s first automotive city. It was a year of bold steps forward, strengthened partnerships, international visibility and a deepening role in South Africa’s industrialisation agenda, writes TASEZ CEO Dr Bheka Zulu. From breaking ground on new infrastructure to hosting high-level national events, TASEZ continued to prove why it is the country’s leading special economic zone (SEZ). Breaking new ground: Phase 2 takes off One of the standout highlights of the year was the sod-turning ceremony for Phase 2 of the TASEZ development, involving the Gauteng Premier, Panyaza Lesufi, TASEZ board members and anchor tenant Ford. The event signalled the start of an ambitious expansion designed to support South Africa’s next wave of automotive and component manufacturing investment. Phase 2 introduces new industrial platforms, expanded capacity for suppliers, and opportunities for medium, small, and micro enterprise (MSME) participation. It positions TASEZ to meet growing global demand, particularly in new energy vehicles (NEVs), and strengthens its integration into Tshwane’s industrial and logistics corridors. This moment marked a powerful step into the future and demonstrated the commitment from government, industry and local partners to drive sustainable, job-rich economic growth. An historic first: Hosting the State of the Province Address In February, TASEZ made history by becoming the first government institution to host a State of the Province Address (SOPA). This landmark moment brought South Africa’s leadership, the diplomatic community, the automotive sector and media into the heart of the SEZ. Hosting the SOPA showed that TASEZ is not only a centre of production, but a national platform for dialogue, policy direction and public accountability. The event showcased the SEZ’s impressive infrastructure, operational readiness and central role in the province’s economic plans. For many South Africans watching or attending, TASEZ became synonymous with Gauteng’s vision of a modern, industrial, investment-ready economy. Expanding global reach: TASEZ heads to China and hosts SADC International engagement was a defining feature of 2025. This was reinforced by a successful business mission to China, where TASEZ leadership met with major automotive manufacturers, potential investors and technology partners. The visit focused on: With China leading global NEV production and innovation, this mission placed TASEZ firmly on the radar of companies looking for a strategic African manufacturing base. In addition, in yet another first for a South African SEZ, TASEZ welcomed the heads of mission from the Southern African Development Community (SADC) to share information and talk about unlocking opportunities for economic growth in the region. The TASEZ team, headed by CEO Dr Bheka Zulu, rolled out the red carpet for the distinguished SADC delegation – ambassadors, high commissioners, and chargés d’affaires – along with representatives from the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition, Brand South Africa, and Trade and Investment KwaZulu-Natal. This gathering was not just a simple meeting – it was a deliberate step toward weaving stronger ties between neighbours, aligning with the goals of SADC, the Southern Africa Customs Union, and the African Continental Free Trade Area. Strengthening policy alignment: Visits from TIPS and Parliament Two significant engagements this year reinforced TASEZ’s role as a strategic player in South Africa’s industrial development landscape: a visit by the parliamentary portfolio committee for trade, industry and competition, followed by a visit from TIPS (Trade and Industrial Policy Strategies). The parliamentary visit highlighted TASEZ’s importance in national oversight and industrial planning. Members engaged with management, toured facilities and assessed the SEZ’s socio-economic impact. The research institution visited the SEZ to assess its contribution to localisation, job creation and competitiveness. Their findings helped strengthen policy alignment and opened discussions on future collaboration. Both visits affirmed that TASEZ is not just delivering – it is taking the lead. Governance excellence: Five clean audits in a row In a year filled with milestones, one achievement stands out for its consistency and integrity: TASEZ received its fifth consecutive clean audit. This accomplishment highlights: At a time when transparent and ethical public administration is more important than ever, TASEZ continues to demonstrate what professional, compliant, high-performing institutions can achieve. A strong industry presence: Naacam and naamsa conferences TASEZ strengthened its industry footprint this year by participating in two major automotive forums: the Naacam Show held in Gqeberha in August 2025 – engaging component manufacturers and showcasing localisation opportunities; and naamsa’s Auto Week that also took place in Gqeberha, but in October 2025 – networking with OEMs and industry leaders while promoting TASEZ’s investment-ready platforms These conferences reinforced TASEZ’s growing reputation as a critical hub for automotive manufacturing, innovation and supplier development. Driving the future: Co-hosting the first NEV Summit TASEZ took centre stage in South Africa’s transition to electric mobility by co-hosting the inaugural New Energy Vehicles Summit held at the Gallagher Convention Centre in late October 2025. The summit brought together policymakers, OEMs, suppliers, researchers and energy experts to map out the country’s role in the global NEV shift. TASEZ’s involvement sent a strong message: the SEZ is ready to become South Africa’s home of NEV manufacturing. The summit provided a platform to discuss infrastructure needs, workforce readiness, supply-chain adjustment and opportunities for new investment. Looking ahead to 2026 If 2025 was a year of bold advances, 2026 promises to be a year of consolidation and delivery. With major construction underway, new investment discussions progressing, and a clear national mandate to support industrial growth, TASEZ is set to play an even bigger role in shaping the country’s economic future. TASEZ enters the new year with momentum, credibility and a clear vision to be Africa’s premier automotive manufacturing destination.

Gauteng must ensure every rand derives tangible value and benefits for the people – MEC

News / By Tasez

By Mandla Mpangase Infrastructure investment plays a pivotal role in economic development, job creation and contributes directly to the quality of life of our citizens Gauteng MEC for Finance and Economic Development Lebogang Maile told the Gauteng Legislature during the tabling of the province’s medium-term policy statement and adjustment budget. Addressing the Legislature on 2 December 2025 Maile said that Gauteng must increase its investment in infrastructure and improve on robust infrastructure systems that support all provincial services including transport, health, education and social development. “The Provincial Treasury has already introduced various measures to improve on the efficient and effective use of financial resources allocated for infrastructure projects,” MEC Maile said, adding that Instruction Notes have been issued as promised with the aim of responding to the needs of the intended beneficiaries and to prevent wasteful expenditure. “When we fail to deliver projects on time, within budget and to specifications inclusive of legislative compliance, we compromise on value for money.” Funding constraints meant that the provincial government had to intensify its efforts to secure alternative resource financing models. MEC Maile noted: “The high level of dependence on the provincial fiscus to fund infrastructure projects must also be addressed through the strengthening of cost recovery and exploring alternative funding sources.” More focus was being placed on consequence management of poorly performing service providers. “All provincial departments and entities are encouraged to work with the Provincial Treasury and other relevant stakeholders to prepare bankable applications for infrastructure projects that qualify for Budget Infrastructure Fund funding.” One key measure being taken was to focus on public-private partnerships as a vehicle to attract additional resources for infrastructure projects. Maile pointed out that Gauteng’s economic output in 2024 had reached R2.4-trillion in 2024, making the province the country’s economic hub, responsible for R33 out of every R100 the country’s economy produces. Gauteng, with KwaZulu-Natal, and Western Cape, contributes approximately 63% of South Africa’s GDP. “However, we understand that the economy of this province must record far higher growth rates to lift South Africa’s GDP, accelerate the creation of much needed jobs and reduce poverty,” Maile said. Economic overview It was against this backdrop that the provincial executive council recently approved the Gauteng City Region Economic Growth and Development Plan. The plan is intended to contribute to the three strategic priorities of inclusive economic growth and job creation; improved living conditions and enhanced health and well-being; and a capable, ethical, and developmental state. The strategy is anchored on 10 pillars: The cross-cutting pillars of the strategy are innovation and digital transformation; women, youth and people with disabilities; township procurement; and research and development. Gauteng City Region Economic Growth and Development Plan is also supported by 12 sector master plans to enable policies and strategies, including the Township Economy Development Act (and the Township Economy Revitalisation Strategy), the Informal Business Upliftment Strategy, the Medium, Small and Micro Enterprises Strategy, the Trade and Investment Strategy and Green Hydrogen. MEC Maile told the Legislature that the Department of Economic Development is currently hosting several sector roundtables which will culminate in the establishment of the 12 sector-specific action labs. “These action labs will act as multistakeholder collaborative and solution-oriented platforms to enhance the effectiveness and implementation of the strategy. “The effective implementation of this strategy will set Gauteng on a positive economic growth path and create much needed jobs, amid global headwinds and domestic economic challenges,” Maile said. “We are working in partnership with all key stakeholders to accelerate efforts to facilitate economic infrastructure development; trade and investment promotion; improve the ease of doing business; and empower micro, small and medium enterprises, particularly those owned by previously disadvantaged groups.” This will go a long way in enabling the province to close the current output gap, enhance production and significantly increase our participation in international markets, he explained. The MEC tabled the Medium-Term Budget Policy Statement 2025, the Adjusted Estimates of Provincial Revenue and Expenditure 2025, and the Adjusted Estimates of Capital Expenditure 2025 for consideration. A responsible balance “The national fiscal framework is aimed at ensuring a responsible balance between government spending, tax revenue, and borrowing to prevent unsustainable debt to create a stable environment for long-term growth, job creation and investment financing of public services,” Maile said. “As the provincial government, our fiscal trajectory reflects these national issues. That is why our focus is on debt management, revenue strategies, and spending restraint, while seeking alternative funding sources to meet increasing public service demands amidst weak economic performance.” The provincial five-year budget approach introduced in the previous financial year will be continued for the 2026 Medium-Term Expenditure Framework (MTEF) Budget with the aim of addressing high-level provincial risks and stabilising public finances. The principles guiding the 2026 MTEF Budget include: “The goal of these principles is to stabilise provincial public finances by maintaining fiscal discipline and credibility and ensure impactful service delivery.” Adustments Budget The 2025/26 Adjustments Budget addresses pressures in frontline services, as a means of equipping the Gauteng Provincial Government to continue responding to the provincial imperatives underpinning the 2024 – 2029 MTDP and the G13 priorities. The total adjustment is R3.3-billion which includes the rollovers, national and provincial funding. As part of this Adjustments Budget, an additional R2.2-billion has been allocated to provincial departments as follows: “As we have said before, we are operating in a difficult environment in which we must find ways to strike a balance between the growing demand for public services and the fiscally constrained economy. We are addressing Gauteng’s fiscal trajectory through a combination of active debt management strategies and spending restraint.” The MEC also used the occasion to launch the pilot phase of TendaSwift – the province’s new e-procurement platform that will automate and digitise the entire tender management process in the province. Reiterating the message of Finance Minister Enoch Godongwana during his medium-term budget policy statement speech, Maile concluded: “‘We are choosing growth, stability, and reform’. I would like to affirm that as the Gauteng Provincial Government, we remain