Special Economic Zone Archives - Page 3 of 9

A key lesson from the G20: Industrialisation must power SA’s economic growth

As South Africa concludes its historic G20 Presidency, the first hosted on African soil, a clear message has emerged: the world is ready to recognise Africa as a central engine of shared prosperity, writes the chairperson of the Tshwane Automotive Special Economic Zone, Maoto Molefane. We must make the most of the momentum. Over 22 and 23 November 2025, the G20 global leaders gathered in Johannesburg to endorse commitments that speak directly to the continent’s long-standing aspirations: equitable development, sustainable industrialisation, resilient economies, and fair participation in global trade. For South Africa, and for advanced industrial platforms like the Tshwane Automotive Special Economic Zone (TASEZ), this moment is far more than diplomatic symbolism; it is about accelerating economic growth to combat poverty and inequality, with industrialisation as a key driver of inclusive growth, job creation, and global competitiveness. The G20 2025 mandate President Cyril Ramaphosa’s closing message from the G20 Summit underscored the stakes. South Africa’s development needs – jobs for young people, robust infrastructure, energy security, thriving export industries – require global stability, inclusive growth and a level playing field. The G20 outcomes align directly with South Africa’s industrial ambitions: These are not abstract policy wins. They reshape the environment in which industrial zones like TASEZ operate: they unlock space for growth that is sustainable, technologically advanced and globally aligned. As President Ramaphosa said: “Together, we must accelerate progress towards the 2030 Sustainable Development Goals and the Pact for the Future. We have laid the foundation of solidarity. Now we must build the walls of justice and the roof of prosperity.” Industrialisation as an engine for growth Given that the 2025 G20 provided a strong voice for Africa, it must be noted that the continent has anchored the world’s supply chains for far too long without capturing its share of industrial value. “The greatest opportunity for prosperity in the 21st century lies in Africa,” President Ramaphosa said in his closing remarks. He described the continent as a driving force for future growth, innovation, mineral beneficiation, climate resilience and energy transition. The 2025 G20 Declaration calls for structural reforms, investment mobilisation, and digital transformation that place industrialisation at the heart of global development priorities. What this means for South Africa is that the country must build, manufacture, innovate, export, and compete. This is the work TASEZ – Africa’s first automotive city – was created to do. Based in the country’s capital city, TASEZ is demonstrating what coordinated industrial policy can achieve: TASEZ is not just an industrial hub; it is a catalyst for economic resilience and can serve as a model for the equitable, future-oriented development highlighted in the G20 Declaration. Beneficiation is a must The global commitment to fair critical mineral development provides South Africa a generational opportunity: to build integrated value chains centred on electric vehicles, battery manufacturing, renewable energy components and advanced materials. As the President noted, minerals must become “a source of prosperity and sustainable development in the countries that produce them”. This aligns perfectly with South Africa’s automotive transition strategy and TASEZ’s expansion into green manufacturing, downstream processing and high-value production clusters. The President called the 2025 summit the People’s G20, characterised by the engagement of business, labour, youth, scientists, mayors and civil society. This spirit of collaboration is the very essence of industrial and special economic zones, which rely on coordinated action between government, investors, communities and workers. South Africa’s G20 success, combined with improving economic indicators and growing confidence in our reform programme, demonstrates that the country is ready for a new industrial chapter based not on extractive development, but on shared value, skills development, innovation, and sustainable manufacturing. Looking ahead As global leaders return home, the world’s attention shifts from diplomacy to delivery. For TASEZ, the task is to translate the political momentum of the G20 into practical industrial capacity. The Johannesburg G20 summit marks a critical turning point for global industrialisation, especially for Africa. The commitments around infrastructure, climate transition, and inclusive development resonate deeply with our vision to build a sustainable, high-tech automotive hub that benefits local communities, talents, and small industrial players. However, for this to be more than rhetoric, the world must translate pledges into concrete investment, local value-chain development, and support for medium, small, and micro enterprises. The timing could not be better, as TASEZ ratchets up its Phase 2 developments. TASEZ will be focused on: The G20 Summit has shown the world what South Africa can achieve when united by purpose. As President Ramaphosa said: “Let us move forward together, demonstrating to the world that we have the capacity to confront and overcome the world’s challenges. Through partnerships across society, and by remembering our common humanity, we can create a more secure, a more just and a more prosperous world. Together, we can ensure that no one is left behind.” Now, industrialisation must carry that momentum forward. TASEZ stands ready to be part of that charge.

How South Africa’s G20 Presidency can accelerate industrial growth through TASEZ

Thought leaders / By Tasez

When South Africa welcomes the world to the G20 Leaders’ Summit this month, our nation will experience one of the most profound moments of global visibility since the country’s dawn of democracy, writes the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu. As heads of state, global CEOs, investors, and development partners converge on our shores for the G20 Leaders’ Summit on 22 and 23 November 2025, the world’s gaze will fall not only on our political leadership but on our economic capability, our industrial resilience, and our readiness to take our place in a rapidly shifting global economy. For those of us tasked with building South Africa’s next-generation industrial platforms, this moment is far more than a diplomatic milestone. It is an opportunity to reshape the country’s industrial trajectory for decades to come. And for the Tshwane Automotive Special Economic Zone (TASEZ), it is a chance to demonstrate that South Africa can compete, innovate, and lead in one of the world’s most dynamic sectors: automotive manufacturing. South Africa in the global spotlight The G20 is not just a gathering of 20 world leaders. It is a year-long platform where global investment sentiment is shaped, where development financing agendas are debated, and where emerging markets like South Africa position themselves as credible partners in the global value chain. It has already triggered accelerated investments in infrastructure, logistics, and city improvement projects, particularly in Gauteng. This matters for industrial zones like TASEZ. Better roads, more reliable energy, and upgraded transport networks are the lifeblood of manufacturing competitiveness. But the physical changes are only part of the story. The more significant shift is reputational. A successful G20 presidency can strengthen investor confidence, deepen trust in our economic institutions, and position South Africa as a stable, future-oriented industrial hub. That alone makes this moment essential for TASEZ and the broader automotive sector. Global industrial priorities What excites me is how closely South Africa’s G20 priorities align with TASEZ’s mission. The 2025 agenda focused on: These are not abstract ideas; they cut to the heart of the automotive industry’s transformation. As highlighted by the recent New Energy Summit held in Gauteng in October 2025, global value chains are pivoting to green mobility, clean manufacturing, and Africa’s integration into supply networks. TASEZ is uniquely positioned in this transition. We are already home to one of Africa’s most dynamic automotive production ecosystems, and we are preparing for a future that includes electric mobility, deeper localisation, and expanded supplier development. If South Africa leverages its G20 presidency effectively, we can secure the policy tools, partnerships, and financing mechanisms needed to accelerate this transition. Showcasing South Africa’s successes The world will not judge us by speeches alone. They will judge us by what we build. This is why TASEZ intends to use the G20 window to demonstrate what coordinated public–private investment can achieve. As the fastest-growing automotive special economic zone (SEZ) on the continent, we have a compelling story to tell — one of job creation, skills development, township inclusion, supplier growth, and industrial expansion. We should be bold in inviting foreign delegations, development finance institutions, and global OEMs to see the zone firsthand. Site visits, technical tours, and bilateral industry roundtables can turn interest into investment. The G20 gives us a once-in-a-generation platform to do this at scale. The G20 Leaders’ Summit will bring renewed attention to Africa’s role in the global economy. For TASEZ, this is an opportunity to expand its influence beyond South Africa’s borders. Through stronger relationships with the Southern African Development Community (SADC) and African Union partners, we can position TASEZ as a catalyst for regional automotive value chains, a future where components made in Botswana, Mozambique, Zambia, or Zimbabwe flow seamlessly into assembly lines in Tshwane. More than symbolic South Africa must convert visibility into tangible improvements in industrial competitiveness. We must guard against the tendency to treat major summits as symbolic rather than strategic. Investment is not secured by banners, speeches, or social media clicks. It is secured by credibility, efficiency, transparency, and delivery. For TASEZ, this means: The 2025 G20 Summit is a strategic opportunity for South Africa to reposition itself as the continent’s industrial leader, providing a platform for government, business, and development partners to act with unity. For TASEZ, it is a chance to amplify what we already know: that South Africa can build globally competitive manufacturing hubs; that our people can produce world-class automotive products; and that, with the right partnerships, we can transition into the mobility future with confidence. The world is coming to South Africa. Will we use this moment to shape our industrial destiny? We at TASEZ intend to do just that.

TASEZ shows how SA can build an economy that works for all

News / By Tasez

By Mandla Mpangase Every South African knows that when infrastructure fails, life becomes harder. Jobs disappear. Businesses relocate. Communities lose hope. But when infrastructure works, everything else begins to work too. Factories stay open. Investors arrive. That is the import of the speech given today by President Cyril Ramaphosa at the National Construction Summit held in Kempton Park, Ekurhuleni. “We are gathered here not just to talk about building an industry, but to build a nation,” the president said, adding: “We are gathered here to share a dream and determination to build a country that works for all its people. South Africa’s national economic drive has never been only about building structures; it has always been about building a country that gives every person a fair chance – something clearly articulated in the National Development Plan (Vision 2030). And the message has been clearly stated through the years of democracy. “From a social development perspective, infrastructure provides people with what they need to thrive,” President Ramaphosa told the summit participants. “It improves the quality of life and can play a key role in reducing inequality. Through reliable infrastructure, we can boost productivity and reduce the costs of living.” It also provides countries with what they need to grow and develop. “Infrastructure facilitates trade and commerce. When we boost infrastructure through the construction industry, we attract investment.” And few places capture this mission more clearly than the Tshwane Automotive Special Economic Zone (TASEZ). Where infrastructure becomes industrial strength “Infrastructure is the backbone of development because, among many other reasons, it bolsters economic competitiveness and sustainability. Without infrastructure, economic growth slows down, inequality deepens, and the quality-of-life declines,” Ramaphosa said. For years, underinvestment in roads, rail, and logistics has held back the key sectors of mining, agriculture, and manufacturing. But South Africa is now shifting course. As the president pointed out: “Infrastructure is poised to once again become the flywheel of the economy. Infrastructure investment is one of the most effective levers for stimulating economic activity.” This is evident in the employment figures released by Statistics SA earlier this week. The latest Quarterly Labour Force Survey released by Statistics South Africa in November 2025 indicates a decrease in the official unemployment rate from 33.2% in the second quarter of this year to 31.9% in the third quarter. Employment increased by 248 000 in the third quarter, with construction the largest contributor with 130 000 new jobs. This is not an accident. It is the result of a deliberate national effort to turn infrastructure into a growth engine. And TASEZ is one of the clearest examples of what that looks like in practice. The special economic zone (SEZ) is proof that when investment is made in the right infrastructure, such as reliable power, efficient logistics, and modern digital systems, further investment is made, jobs are created, and industrial capability is strengthened. TASEZ is where South Africa’s automotive future is being built, factory by factory, with global manufacturers choosing the Tshwane SEZ because the fundamentals are already in place. A model for inclusive growth The zone is succeeding not only because of its industrial strength but because of its social impact. It is bringing economic activity to communities long left on the periphery. It is creating opportunities for young people entering technical fields. It is giving small businesses a stake in a globally competitive value chain. As TASEZ CEO, Dr Bheka Zulu, notes: “When we talk about spatial redress, this is what it looks like: development that doesn’t speak about communities but works with them.” Towards investment Government has committed R1-trillion in infrastructure spending over the medium term, alongside reforms to unlock greater private investment. Procurement war rooms, new public-private partnership guidelines, and accountability frameworks are designed to ensure that projects do not stall but move quickly from planning to ground-breaking. As the world prepares to join South Africa for the G20 Leaders’ Summit, the country is showing what renewal looks like on the ground. Roads are being rebuilt. Industrial zones like TASEZ are expanding. If this momentum is sustained, TASEZ will not be the exception but the blueprint, demonstrating what is possible when strong infrastructure, a capable state, and committed investors come together.

From policy to action: Now is the time for South Africa to embrace new energy vehicles

Thought leaders / By Tasez

South Africa must move from policy to action as a matter of urgency, aligning incentives, infrastructure, skills, and industrial coordination around new energy vehicles, writes the CEO of Tshwane Automotive Special Economic Zone, Dr Bheka Zulu. South Africa’s automotive industry stands at a turning point. The global race toward low- and zero-emission mobility is accelerating, and for a country whose automotive exports hinge on access to the European market, embracing new energy vehicles (NEVs) is no longer optional, it has become an industrial necessity. The Electric Vehicle (EV) White Paper and the South African Automotive Master Plan 2035 (SAAM) together lay a strong policy and strategic foundation. The challenge now is moving from intent to implementation. The country has a clear opportunity to build an inclusive, competitive, and sustainable automotive industry powered by innovation, ready for a net-zero world. Transformation is a must The global automotive landscape is undergoing a profound transformation, driven by the urgency to reduce carbon emissions and achieve net-zero goals. The European Union’s carbon neutrality policies are among the most influential in this shift, setting strict timelines for phasing out internal combustion engine (ICE) vehicles and promoting zero- and low emission alternatives. The EU aims to be climate-neutral by 2050. The objective is to ensure an economy with net-zero greenhouse emissions. For South Africa, this presents both a challenge and an opportunity. The EU remains South Africa’s largest export market for vehicles, accounting for the bulk of automotive exports. A significant 68,7% of light vehicle production was exported in 2024, with three out of every four cars headed to Europe. This means that the EU’s green regulations will directly determine South Africa’s ability to continue trading competitively in this critical sector. Vehicles built in Gauteng and other parts of the country will increasingly need to meet low- or zero-emission standards to remain eligible for export. Transitioning now is not optional, it is essential. Early investment in NEV production, local battery manufacturing, and supporting infrastructure such as charging networks will safeguard South Africa’s market access, maintain its global competitiveness, and create a foundation for long-term industrial sustainability. Policy meets opportunity The EV White Paper charts a managed transition from internal combustion engines to cleaner technologies, ensuring decarbonisation does not lead to deindustrialisation. It sets out steps to localise EV production, develop charging infrastructure, and build skills for the future. The White Paper allows for a managed transition, setting out a number of processes: It has identified 10 actions required to build an EV production ecosystem, including the beneficiation of critical minerals, battery reuse and refurbishment, regulatory alignment, and incentives for localisation. Complementing it, the South African Automotive Master Plan (SAAM 2035) envisions South Africa increasing local content in vehicle manufacturing, expanding exports, and doubling employment by 2035. SAAM 2035 sets out six focus areas: optimising the local market, developing the regional market, localisation, infrastructure development, industry transformation, and technology a skills development. Targets include: Together, the EV White Paper and SAAM 2035 frame a just, inclusive transition that can preserve and grow the country’s industrial base. Driving implementation Turning these policies into tangible outcomes depends on strong institutions. In Gauteng, the Gauteng Growth and Development Agency (GGDA), its subsidiary the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ) are taking the lead. TASEZ, Africa’s first automotive city, is positioning itself as a hub for future-focused investment, where manufacturers and suppliers can plug into purpose-built infrastructure, training, and incentives. The AIDC, through its learning centres and supplier parks, is aligning skills and enterprise development with EV technologies. Together, these institutions are turning national ambition into provincial action. South Africa must act quickly to overcome power constraints, develop a local battery value chain, and align incentives to attract NEV and component investment. Global markets are already shifting and delays could cost South Africa export access, investor confidence, and thousands of jobs. A call to lead Africa’s NEV revolution The upcoming 2025 NEV Summit, hosted by GGDA, AIDC, and TASEZ on 22-23 October 2025 at the Gallagher Convention Centre, represents the next phase: uniting government, industry, and investors to accelerate implementation. From policy to action, South Africa’s NEV future depends on decisive execution.

Reimagining the future of SA’s auto industry

News / By Tasez

By Mandla Mpangase Collaboration, skills development, and a bold push into Africa were the recurring themes during the “Value of reimagining the future, together” panel discussion hosted by naamsa during the South Africa Auto Week 2025 in Gqeberha on Wednesday. Moderated by TransUnion Africa, Lee Naik,Chief Operations Officer at naamsa (The Automotive Business Council), the high-level dialogue on 1 October 2025 brought together leading voices from finance, manufacturing, technology, and industrial development to explore how South Africa can secure its place as the continent’s automotive hub. A shared vision for 2035 CEO of TransUnion Africa, Lee Naik, set the tone by urging stakeholders to think long-term. “South Africa’s biggest challenge is not that we don’t have answers, but that we haven’t created enough spaces for honest, collective dialogue. If we can start aligning around 2035 as a target, we can fill the gaps left by global markets like the US. It begins with conversations like this,” he said. The South African Automotive Master Plan sets out key targets for the country’s automotive sector to reach by 2035, including increasing vehicle production to 1.4 million vehicles a year and raising localisation levels in South African-manufactured vehicles from an average of 40% to 60%. Managing executive of Absa vehicle and asset finance, Charl Potgieter, highlighted the industry’s dual role as a GDP driver and social enabler. “The automotive industry contributes 5.2% to South Africa’s GDP, and it creates hundreds of thousands of jobs. But beyond that, it carries our people to work, to school, to worship, to family. How can we not invest in ensuring more South Africans gain access to mobility?” WesBank’s CEO Robert Gwerengwe, echoed the sentiment. “Mobility is not just about vehicles; it’s about giving people access to the economy. A job, an education, the ability to operate in society – that’s what we finance. If we only focus on market share, we’ve missed the point.” Infrastructure and logistics as catalysts For the CEO of Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu, the future hinges on building resilient logistics networks. “If you look at the topic of the panel discussion, we are imagining the future as a collective, and it’s a collective that is sitting with a bit of uncertainty in terms of how the market flows,” Dr Zulu noted. Focusing on the term ‘together’, the TASEZ CEO observed that all in the industry need to find solutions for the country. “The reality is that we are sailing through some stormy the waters … and the shift in the industry fostered by digitisation and the issue of sustainability is what is rocking some of the boats,” he added. “Cargo is king. South Africa has over a century of automotive manufacturing expertise, but unless we create sustainable, cost-effective logistics value chains, we will lose our competitive edge,” Dr Zulu said. “Special Economic Zones must serve as gateways to Africa, linking industrial complexes with continental markets through efficient trade corridors.” Dr Zulu emphasised the need to look to the African Market. “We should be focusing on the market that we have, which is African market. We’ve got a capture market. We’ve got a market that we understand. How are we allowing the east to come and penetrate a market that we better understand.” CEO of Accenture Africa, Kgomotso Lebele, stressed the importance of transformation and localisation. “The industry must not be seen in isolation. It sits at the heart of reforms in renewable energy, mining, technology, and skills. If we get localisation right, we scale employment and create opportunities for entrepreneurs to enter global value chains.” The Automotive Industry Development Centre’s CEO Andile Africa, pointed to the practical progress made through incubation programmes pairing small enterprises with global OEMs. “We have entrepreneurs who started as tier-three suppliers and now serve major manufacturers. Transformation is possible, but it requires patience, scale, and deliberate partnerships.” Data, skills and financial inclusion Naik reminded the audience of the stark exclusion still facing millions. “There are 16 million South Africans with hopes and dreams of mobility, but the financial system says no. Technology and data can change that. Using AI and alternative data sources, we can give millions a chance to access finance, mobility, and opportunity.” The skills gap was another recurring theme. Panelists agreed that without investment in AI, robotics, and digital capabilities, South Africa risks losing its automotive competitiveness. “The future is youthful. Our continent’s young people hold the key – if we equip them with the right skills today,” said Lebele. The discussion concluded with a shared recognition that South Africa’s automotive industry cannot afford fragmented efforts. Policy certainty, infrastructure investment, financial inclusion, and regional integration were all identified as non-negotiables. “Let’s stop duplicating efforts,” urged Gobiyeza. “The industry must stand as SA Inc., put its best foot forward, and show OEMs that South Africa is not only open for business but is the natural gateway to Africa’s automotive future.”

Auto manufacturing leaders urge action on investment

News / By Tasez

By Mandla Mpangase South Africa’s automotive sector, a key industry for the country’s economy, faces losing ground globally unless decisive action is taken to attract and retain new investment. This was the central message of a high-level panel discussion at South African Auto Week 2025 in Gqeberha from 1 October 2025. This year’s South Africa Auto Week, hosted by the Automotive Business Council (naamsa), is being held under the theme “Reimagining the future together – Cultivating inclusive growth and shared prosperity”. The panel, moderated by Financial Mail and Business Day editor-at-large David Furlonger tackled the topic “Salient ingredients to attract new investment for auto manufacturing in South Africa”. Furlonger opened the discussion with a stark reminder: while global markets are making inroads with new energy vehicles, South Africa lags behind. “We are very good at coming up with plans, but not so great at implementing them,” he warned. “Now we need action.” Policy and incentives The director of advanced manufacturing at Invest SA, an agency of the Department of Trade, Industry and Competition, Rashmee Ragaven, outlined a suite of government programmes, including the Automotive Production and Development Programme and the Automotive Investment Scheme, that have been designed to support manufacturers Ragaven stressed the importance of partnerships between government and industry, and the role of free trade agreements, skills development, and special economic zones such as the Tshwane Automotive Special Economic Zone based in Gauteng, and the Eastern Cape’s industrial development zone of Coega in anchoring investment. But Ragaven acknowledged speed is critical to bringing about any change. “The partnerships are there, but the speed of action is even more critical now than ever before.” The Eastern Cape scenario CEO of the Eastern Cape Development Corporation, Ayanda Wakaba, highlighted the vulnerability of the province’s automotive industry, long a hub for OEMs such as Mercedes-Benz and VW. “The market dynamics have shifted so much that establishing an industrial plant today is very different from before. “We must benchmark ourselves against what other countries are doing,” he said. While defending the sector remains essential, Wakaba stressed the need to diversify into new industries and leverage digital infrastructure investments in rural areas to broaden economic opportunities. A call for action For Andreas Brand, CEO of Mercedes-Benz SA, the formula is simple: action. He pointed to Mercedes-Benz’s investments in solar energy and skills development through its learning academy as proof that collaboration with the government can deliver results. “Without acting, theory never hits reality,” he said. “We need robust, constructive engagement and specific actions that all parties adhere to. That is what delivers change.” Mickey Mama, head of department at the Eastern Cape’s Department of Economic Development, Environmental Affairs and Tourism, drew comparisons with Morocco and Eastern Europe, both of which have surged ahead of South Africa in attracting investment. “Our municipalities take too long to approve applications. Morocco has a turnaround time that outpaces us completely,” Mama said, warning that red tape and a lack of policy clarity on NEVs risked pushing investment elsewhere. Chinese brands on the lookout for opportunities South Africa is also facing a wave of interest from Chinese automotive brands, but obstacles remain. Conrad Groenewald, COO of Great Wall Motors, noted that while Chinese firms are eager to invest outside of China, South Africa’s current policies make it hard to justify the return on investment. “We compete globally. South Africa is already at a disadvantage, being at the tip of Africa. We need policies that allow reasonable returns for investors,” he said. Groenewald also cautioned that rising import duties and the potential removal of import credit benefits would hurt consumers and deter new entrants. “Vehicle pricing has already outpaced earnings. If policies change further, it will make it even harder to do business here,” he warned. Need to strengthen component supplier base Bronwyn Kilpatrick, CFO of Toyota, stressed the urgent need to strengthen South Africa’s tier two and tier three supplier base. “In South Africa, our manufacturing pyramid is inverted. Only 20% of value-add comes from local tier two and three suppliers. In Thailand, it’s the opposite, and it’s driven by targeted incentives,” she explained. Developing smaller suppliers, however, requires long-term commitment, mentorship, and patient capital, she added. The time to act is now Across the panel, one complex theme emerged: the need for clear policy, faster implementation, and real partnerships to support both OEMs and suppliers. As Ragaven concluded: “There is a shift in mindset in government, but speed is critical. We cannot afford to wait any longer.” South Africa’s automotive sector, which contributes nearly 5% to GDP and supports hundreds of thousands of jobs, now faces a defining moment. Competing nations like Morocco, Thailand, and Eastern Europe have shown what decisive policy and execution can achieve. South Africa must act – and it must act now – to translate its world-class skills and its hard-earned manufacturing expertise into a future-ready industry.

Gauteng assesses its readiness for a transformed automotive sector

News / By Tasez

Gauteng has ambitious plans to turn the province into the automotive hub of Africa. So serious is the intention that the leading role players in the South African automotive sector gathered in Johannesburg to share insights into what is needed to make that happen. This comes amidst a rapidly evolving global automotive sector, the looming carbon-neutral targets for vehicle imports into the European Union by 2035, and the current turmoil surrounding increased tariffs being imposed on goods entering the United States. Addressing the participants at the Automotive Sector Policy Dialogue, Gauteng’s MEC for finance and economic development, Lebogang Maile, emphasised the significance of the sector to the country’s economy. In 2024, the automotive industry contributed 5.2% towards the GDP of the country, with 110 000 direct jobs – 33 154 in the original equipment manufacturers and 81 860 people employed by component manufacturers. Gauteng is home to three original equipment manufacturers, Nissan, Ford, and BMW – all based in the City of Tshwane, along with the Tshwane Automotive Special Economic Zone and the Automotive Industry Development Centre. Together, the three OEMs produced 1.8 million vehicles between 2014 and 2023, accounting for 32.8% of South Africa’s vehicle production. “According to the National Association of Automobile Manufacturers of South Africa (Naamsa), Gauteng’s automotive sector is expected to gain momentum, especially with the establishment of the Tshwane Automotive City (TAC), which will serve as an integrated logistics framework focusing on inland ports and manufacturing hubs linked to rail corridors linking Tshwane with strategic ports in South Africa and SADC (the Southern African Development Community),” MEC Maile noted. A different-looking automotive sector Speaking on the shift from internal combustion engines towards new energy vehicles (NEVs), Maile spoke of the urgency required by the automotive sector to adjust its production value chains and technologies to transition towards NEVs to retain and grow its existing market share. He also identified the challenges the automotive sector faces, including: What this all means, Maile told the participants, is that a different approach was needed to support and develop the sector. “There is a need for an inclusive approach towards transforming the sector.” While the province had made progress in terms of establishing the AIDC supplier park and the development of TASEZ, much more needed to be done to make the sector competitive, MEC Maile said. The dialogue was held to assess the province’s readiness for the NEV transition; to identify the infrastructure investment requirements for the transition; gather information into the support requirements for Tier 1, Tier 2, and Tier 3 component manufacturers; highlight skills requirements, funding collaborations and partnerships to support the transition; and understand the implication of US tariffs and potential new markets for South African OEMs. In line with the discussion on NEVs, the province will host the inaugural NEV Summit in October, where industry players will share further knowledge on the sector. For further information on the NEV Summit visit the AIDC website. visit www.aidc.co.za.

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

Women’s Day celebrations at TASEZ

Uncategorised / By Tasez

The Tshwane Automotive Special Economic Zone took some time out of the day on Friday, 8 August 2025 to celebrate and honour the women staff of the special economic zone, the day ahead of South Africa’s Women’s Day. As the women started arriving at work, they were greeted by a significant message playing on the screen at the TASEZ head office reception. The familiar TASEZ logo was prominently displayed along with its well-known pay-off line “Africa’s first automotive city”. But that message soon changed. Breaking from tradition, the TASEZ pay-off line morphed into “National Women’s Month – you are the heartbeat”. Then came an unexpected message – an explanation as to why TASEZ had taken the bold step to amend its pay-off line for August: “We decided to change the branding because you have changed us”. The women were also greeted by TASEZ’s Infrastructure Executive, Andile Sangweni. He acknowledged those in the room, noting they were all women of resilience and strength. “I thank each and every one of you for being the strong women you are – not the women of social media, but the women who stand their ground and excel.” He reminded the group of the historic Women’s March on 9 August 1956, when 20 000 women from across the country converged on the Union Buildings, just a few kilometres from where TASEZ is located, to deliver signed petitions against the apartheid pass laws, which severely curtailed the movement of black South Africans. “If I had to characterise the women of that time, they were women of courage, they were women of resilience, they were strong women,” Sangweni said, pausing briefly before adding that when he looked around the room, he saw the same. Acknowledging that the women often found themselves in an environment that could be difficult for them, in an environment dominated by men, he saw them always striving to do better and achieve. “I thank you for setting the example, I thank you for passing on the torch to the younger generation.” The women of TASEZ have taken to heart the message from the United Nations’ secretary general, António Guterres, when he said: “When women and girls can rise, we all thrive.”

Manufacturing has the potential to transform the economy and create jobs

News / By Tasez

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