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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.”

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

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

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

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

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

Thought leaders / By

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