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From growth to dignity: Why coordinated industrialisation is Gauteng’s best weapon against unemployment

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Dr Bheka Zulu, CEO of the Tshwane Automotive Special Economic Zone, reflects on Gauteng’s MEC for Economic Development and Finance, Lebogang Maile’s call to tackle unemployment through sustained, coordinated implementation that transforms growth into jobs. Gauteng MEC for Finance and Economic Development, Lebogang Maile, is correct in asserting that addressing unemployment in the province is no longer about isolated interventions, but about sustained, coordinated implementation that transforms growth into jobs – and jobs into dignity, stability, and hope. This is not simply a policy statement; it is a call to action that speaks directly to the structural realities of South Africa’s economy. For too long, economic growth and employment outcomes have moved on separate tracks. Investment announcements have not always translated into meaningful opportunities for communities, and skills programmes have not always aligned with industry demand. Bridging this gap requires precisely the kind of coordinated execution the MEC is advocating. At the Tshwane Automotive Special Economic Zone (TASEZ), we see daily evidence that when alignment is intentional, growth does convert into jobs. Special Economic Zones are designed to function as integrated ecosystems – bringing together government policy, infrastructure investment, private sector capital, skills development institutions, and local enterprise participation into a single industrial platform. This coordination reduces barriers to investment while accelerating employment creation across multiple layers of the economy. The automotive sector provides a powerful illustration. Industrial expansion anchored by major manufacturers such as Ford Motor Company not only creates jobs on the factory floor, but also drives supplier development, logistics demand, construction activity, services growth, and opportunities for small and medium enterprises. Each manufacturing job can support several additional jobs across the value chain. When scaled, this multiplier effect becomes a meaningful response to unemployment. However, coordination cannot stop at attracting investment. It must extend to localisation strategies that deepen domestic supplier participation, targeted skills development that prepares young people for modern manufacturing, and deliberate pathways for township and small businesses to enter industrial value chains. Without these linkages, economic growth risks remaining abstract — visible in statistics but not felt in households. The MEC’s emphasis on dignity and hope is particularly important. Employment is not merely an economic indicator; it is a foundation for social stability. Work provides income, certainly, but it also provides identity, confidence, and belonging. Communities with access to sustainable employment experience lower inequality, stronger family structure,s and greater resilience. Industrialisation, therefore, should be understood not only as an economic strategy but as a social compact. For Gauteng to succeed, three priorities stand out. First, implementation discipline must become non-negotiable. Plans and strategies are abundant; execution is the differentiator. Projects must move from announcement to completion faster, with measurable outcomes and clear accountability. Second, collaboration across spheres of government and institutions must deepen. Provincial initiatives, national industrial policies, municipal planning, and private sector investment need to operate within a shared framework focused on employment outcomes. Third, policy certainty and investor confidence must be protected. Industrial investment is long-term by nature. Businesses commit capital when they trust the stability of the environment in which they operate. Consistency and reliability in policy signals are therefore critical to sustaining job creation momentum. Gauteng remains South Africa’s economic engine. Its infrastructure, industrial base, financial ecosystem and human capital position it uniquely to lead a new phase of re-industrialisation. But leadership will ultimately be judged not by growth rates alone, but by whether that growth changes lives. If we succeed in translating investment into factories, factories into jobs, and jobs into dignity, stability and hope, then we will have met the challenge MEC Maile has placed before us. And that is a goal worth coordinating around.

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

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

Building South Africa’s economy begins with building its skills base

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By Mandla Mpangase The importance of artisans and vocational excellence takes centre stage this week as the WorldSkills South Africa National Competition, Conference and Career Festival 2026 takes place at the Inkosi Albert Luthuli International Convention Centre in Durban. The event, on 9 and 10 March 2026, brings together various delegates, from industry leaders and policymakers to educators and young competitors, to explore how artisan and vocational skills can help build a more competitive and inclusive South African economy. Over 200 students from TVET (technical and vocational education and training) colleges, universities of technology and training providers are competing across 27 technical and vocational skill categories, with the top performers set to represent South Africa at the global WorldSkills competition in Shanghai later this year. Skills as a driver of economic growth The conference theme “Building a skilled and competitive workforce for the future” speaks directly to South Africa’s pressing challenge of unemployment and the shortage of skilled artisans across multiple sectors. Artisan training has become a strategic priority for the country, particularly in fields such as welding, electrical work, robotics, aircraft maintenance and manufacturing technologies. Programmes linked to the WorldSkills movement aim to strengthen vocational education and encourage young people to consider careers in the skilled trades, areas widely regarded as essential to economic expansion. Government has repeatedly highlighted that strengthening the artisan pipeline is key to achieving the ambitions of the National Development Plan 2030, which calls for a significant increase in the number of trained artisans to support industrialisation, infrastructure development and job creation. South Africa has set a target of producing around 30 000 qualified artisans annually by 2030, a goal closely aligned with initiatives such as WorldSkills that promote technical excellence and industry-ready training. Bridging education and industry Beyond the competition, the Durban event also features a conference programme and career festival designed to connect learners with employers and training institutions. High school learners and unemployed youth are being exposed to potential career pathways through apprenticeships, workplace learning and vocational training opportunities. The event is intended to help reshape perceptions about technical careers, positioning artisan professions as high-value contributors to the modern economy rather than fallback options. TASEZ Training Academy joins the conversation Among the organisations participating in the conference is the TASEZ Training Academy, representing the skills development arm of the Tshwane Automotive Special Economic Zone (TASEZ). The academy’s presence highlights the critical relationship between industrial development and vocational training. As an automotive manufacturing hub anchored by the Ford Motor Company assembly plant in Silverton, Pretoria, TASEZ depends heavily on a steady supply of skilled artisans in fields such as mechatronics, toolmaking, robotics and advanced manufacturing. Delegates from the academy are attending the conference to: “By aligning training programmes with industry demand, our academy aims to ensure graduates are not only qualified but work-ready for the rapidly evolving automotive manufacturing environment,” says TASEZ Training Academy head, Meriam Malebo. Building the workforce of the future The WorldSkills conference arrives at a time when South Africa is seeking to accelerate economic growth through localisation, manufacturing expansion and infrastructure investment – sectors that rely heavily on skilled artisans. Events like this reinforce the idea that economic transformation is inseparable from skills development. By connecting training institutions, government and industry, the initiative aims to cultivate a generation of technicians, artisans and innovators capable of driving the country’s industrial future.

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

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

TASEZ enterprise development driving MSME growth and job creation

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By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is intensifying its focus on enterprise and supplier development as a key lever for inclusive industrialisation, with focused training programmes, support for medium, small and micro enterprises (MSMEs), and value-chain integration already translating into jobs and business growth. Speaking in a radio interview on Poort FM on 24 February 2026, Senior Manager Enterprise Development, Sibusiso Khuzwayo, said the TASEZ enterprise and supplier development programme is designed to create practical opportunities for MSMEs across the automotive ecosystem, from construction and maintenance to long-term automotive black industrialist participation in the automotive industry. “Our enterprise and supplier development is fundamentally about creating opportunities for MSMEs within the automotive sector,” Khuzwayo said. “As a Special Economic Zone, we create opportunities during construction, during the operational phase and after market, importantly, through our tenants, including OEMs and tier-one suppliers within the Zone and other industries in the automotive sector, so that small businesses can participate in the full value chain.” Construction to operations Khuzwayo highlighted that TASEZ’s Phases 1 and 1a have already delivered significant employment impact, particularly during infrastructure construction. “During Phase 1, more than 3 500 jobs were created in construction, and thousands more people benefited directly from employment opportunities within the zone,” he said. “We also issued over 260 work packages to more than 220 MSMEs, which is critical because it spreads economic benefit beyond the industrial site.” The next phase, he explained, is ensuring MSMEs continue to benefit during construction in Phase 2, particularly through maintenance contracts, technical services and supplier opportunities linked to automotive production. “That is where sustainable job creation really happens, when MSMEs are integrated into ongoing operations,” he said. Bridging the gaps A major challenge facing small businesses entering the automotive sector is the gap between what they can produce and what large manufacturers require in terms of quality, compliance and consistency. “You may have an MSME that can produce a product, but the question is whether they can meet the standards required by the end user,” Khuzwayo said. “Our role is to bridge that gap through training, partnerships and mentorship so that MSMEs can reach the level required by industry.” This includes collaboration with industry bodies, development agencies and automotive support organisations to prepare businesses for tier-one supplier opportunities — a long-term ambition that includes developing black-owned component manufacturers. Training MSMEs and youth for future industries Skills development is central to the strategy. TASEZ has established a dedicated training academy aimed at aligning education outcomes with industry demand, working with universities, Technical and Vocational Education and Training (TVET) colleges and Schools of Specialisation. “We want to ensure that when investors come to South Africa, they do not say there are no skills available,” Khuzwayo said. “Our responsibility is to help create that skills pipeline, from school level through to specialised automotive training.” The initiative also targets young people early to spark interest in engineering, robotics and emerging automotive technologies, including electric vehicles (EVs). Last-Mile project demonstrates growth potential. One of the most successful interventions has been the “last-mile delivery” project, which trained around 100 young people in electric mobility logistics. Twenty participants received starter packs to launch delivery businesses using electric scooters. “The results have been encouraging,” Khuzwayo said. “Some participants have significantly increased their turnover – in one case from about R100 000 to over R1-million – showing the real impact of targeted support.” Beyond logistics, the project has created opportunities in other EV solutions, such as charging infrastructure and maintenance services, linking MSMEs to the green economy transition. Addressing finance barriers Access to working capital remains a major obstacle for emerging suppliers, particularly when they secure contracts but cannot finance delivery timelines. Khuzwayo said TASEZ is working to establish partnerships with funders that can provide fast, affordable financing backed by confirmed contracts from the zone. “We want MSMEs to access funding within days, not months, and at reasonable rates,” he said. “Otherwise, opportunities meant to empower them can actually leave them worse off.” Women, youth and persons with disabilities The enterprise and supplier development programme also prioritises inclusion, with targeted initiatives for women-owned enterprises, youth entrepreneurs and businesses led by persons with disabilities. “We cannot leave anyone behind,” Khuzwayo said. “We are partnering with organisations that specialise in these sectors so that we can identify opportunities and support businesses more effectively.” Preparing for Phase 2 opportunities With TASEZ preparing for further expansion, Khuzwayo encouraged businesses to ensure compliance documentation, certifications and collaboration partnerships are in place. “Opportunities will not come to you; you must prepare and go out to find them,” he said. “Engage with us, watch our platforms and get ready for Phase 2.” He added that while the zone is still developing, stakeholder feedback is essential. “Reshaping the future of automotive excellence does not mean we will not make mistakes,” he said. “We are open to engagement. Tell us what is working and what is not – that is how we improve.” Industrialisation with local impact TASEZ, Africa’s first automotive city, aims to position South Africa as a continental leader in automotive manufacturing while ensuring local communities benefit through jobs, skills and enterprise development. “What we are building is not just an industrial zone,” Khuzwayo said. “It is a platform for businesses to grow, for people to work and for transformation to become real.”

Budget 2026 signals infrastructure push and investment drive to unlock growth

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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

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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

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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

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.