Tshwane Automotive Special Economic Zone Archives - Page 4 of 12

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

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

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

Thought leaders / By Tasez

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

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

Thought leaders / By Tasez

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

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

News / By Tasez

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

BBBEE can help drive industrial transformation in SA’s automotive sector

Thought leaders / By Tasez

Broad-based black economic empowerment was never meant to be about compliance. It was meant to be about change, about opening doors, building skills, and creating real economic inclusion, writes Dr Bheka Zulu, CEO of the Tshwane Automotive Special Economic Zone. When we talk about transformation in South Africa’s economy, it often sounds like we are talking about paperwork. Too often, broad-based black economic empowerment (BBBEE) gets treated as a box-ticking exercise, a scorecard to be managed, instead of a movement to be led. But BBBEE was never meant to be about compliance. It was meant to be about change, about opening doors, building skills, and creating real economic inclusion. At the Tshwane Automotive Special Economic Zone (TASEZ), we sit at the crossroads of two of South Africa’s biggest goals: industrialisation and empowerment. This week, as we hosted a BBBEE Commission workshop with our tenants, partners, and local community representatives, one issue came into clear focus – transformation in the automotive sector must go beyond talk. It needs to deliver real, measurable results. A sector that matters The automotive industry plays a huge role in South Africa’s economy. It contributes around 5.3% to the national GDP and about 30% of the total manufacturing output. Behind those numbers are people – more than 130 000 direct jobs, and many thousands more through the supply chain. But the truth is, transformation has not kept pace with this growth. Leadership in the sector still does not reflect the demographics of our country. Ownership remains concentrated. Supplier development often stops at token efforts. As the industry shifts toward new energy vehicles (NEVs), we have an opportunity to correct this. The future of the automotive sector cannot mirror the inequalities of the past. BBBEE gives us the framework to do things differently. The codes of good practice were never just about ownership; they were about five interconnected pillars: ownership, management control, skills development, enterprise and supplier development, and socio-economic impact. These must now become the foundation for how we build a fairer, more innovative, and future-ready industry. Turning policy into progress At TASEZ, we have made a deliberate choice to make transformation practical and measurable. In recent years, we have channelled more than R1.7-billion in contracts to small, medium and micro enterprises (SMMEs), many of them black- and women-owned. Over 40% of our procurement is local. Those are not just numbers on a page; they translate to more than 5 000 jobs created during construction, 80% of them for women and 60% for young people. People with disabilities are also increasingly part of our projects. But transformation is not just about procurement spend. It is about building capacity that lasts. I would suggest we establish a Skills Development Forum that brings together original equipment manufacturers (OEMs), component suppliers, and local colleges to ensure the skills we teach match the jobs that exist and those that will exist in the future. Small businesses are another priority. Many promising enterprises do not fail because of a lack of ideas; they fail because they do not have the support systems for compliance, HR, or financial management. That is why TASEZ is introducing shared back-office support for SMMEs in the automotive value chain. If we want black industrialists to thrive, we cannot expect them to do it alone from garages and backrooms. Building local capacity Real transformation is also about building economic independence. For too long, our sector has depended on imports. We have to change that by focusing on localisation and innovation. Our goal, as expressed in the South African Automotive Masterplan 2035, is to raise local content levels from 40% to at least 60%. That means developing black-owned suppliers into full manufacturers, innovators, and exporters, not just intermediaries. It means investing in partnerships with universities and research institutions, so that South African engineers and entrepreneurs can lead the way in electric mobility, battery recycling, and green manufacturing. We should also establish a Green SMME Innovation Sandbox to support enterprises involved in circular-economy opportunities such as waste recovery, e-waste, and battery recycling. Let us create a space where new ideas can be tested. The future of BBBEE is as much about sustainability as it is about ownership. Inclusion must be intentional True transformation leaves no one behind. We have seen the incredible results when women and people with disabilities are intentionally included in training, production, and leadership. That inclusion needs to become standard practice. The same applies to our local communities. Our social compact with residents around TASEZ is not symbolic, it is real. Through enterprise incubation, community training, and mentorship programmes, we are working to make sure that the special economic zone (SEZ) model uplifts the people who live closest to it. Transformation and competitiveness go hand in hand The automotive sector is at a major turning point. By 2035, the world will be dominated by NEVs. Export markets are already tightening their emissions standards, and if we don’t adapt quickly, we risk being left behind. Transformation must therefore be seen as a tool for competitiveness. BBBEE should drive innovation and productivity, not just compliance. It should open doors for local firms to access global supply chains and strengthen their ability to compete. That means better financing for black suppliers, guaranteed offtake agreements, and strong mentorship partnerships between international OEMs and emerging South African manufacturers. The road ahead Our message is simple: let us reclaim BBBEE as a national mission for industrial renewal. Let us link empowerment to productivity, localisation to sustainability, and inclusion to innovation. The next phase of transformation must be about building black-owned exporters, green manufacturers, and a generation of young technicians ready for the digital and green mobility era. We need to move from counting scorecards to building real capacity, because transformation is not only about fairness, it is about South Africa’s readiness for the future.

TASEZ, tenants and local communities to build shared value through BBBEE collaboration

News / By Tasez

By Mandla Mpangase The Tshwane Automotive Special Economic Zone (TASEZ) is strengthening its partnerships with tenants and local communities to ensure that Broad-Based Black Economic Empowerment (BBBEE) becomes a shared journey of inclusion, opportunity, and practical transformation. This was the central idea emerging from a workshop held by the BBBEE Commission at TASEZ on 4 November 2025, where business representatives, community leaders, and small enterprises came together to explore how collaboration can unlock sustainable growth for all. Sibusiso Khuzwayo, acting executive for Zone Operations at TASEZ, in summarising the workshop, noted that there was broad agreement that BBBEE is not just about compliance, but about connection, linking big business with township suppliers, emerging manufacturers, and service providers in ways that build long-term capacity. “We are trying to create an enabling environment that creates opportunities for robust partnerships,” said Khuzwayo. “Our role at TASEZ is to bring together three interests: businesses that want to make a profit, communities that need opportunities, and local suppliers who are eager to grow. “The real challenge is making sure all three talk to each other, and that’s where TASEZ steps in.” The BBBEE Commission outlined the key elements of the codes and explained various technical details companies and emerging entrepreneurs needed to know in order to meet the BBBEE requirements. Time was spent on tackling real-life issues, providing answers to questions from the businesses and emerging entrepreneurs in the room. In his closing, Khuzwayo went through the issues raised during the morning. There were a number of concrete measurable steps suggested, including providing the tenants with a database of the SMMEs from the local communities; ongoing training; hosting regular meetings focusing on ways to support local businesses in transforming and growing their businesses; and creating network opportunities. Khuzwayo emphasised that enterprise and supplier development – a core element of BBBEE – sits at the heart of TASEZ’s economic inclusion strategy, and proposed establishing targeted development funds and mentorship initiatives that would directly support small, medium, and micro enterprises (SMMEs) in key sectors such as automotive components, logistics, and waste management. “We must sit down together, identify 10 high-potential SMMEs, and support them with training, mentorship, and market access. When we meet again in six months, we should be able to see tangible progress.” Khuzwayo noted that one of the recurring challenges is the lack of visibility between the tenants in the special economic zone (SEZ) and local suppliers. “If tenants are not aware of who’s on our local supplier database, we’re doing something wrong,” he said. “We want to ensure transparency so that when procurement opportunities arise, our tenants can source locally before looking elsewhere.” The workshop also explored opportunities in waste management, which Khuzwayo described as “a sector rich with potential for community enterprises”. With the automotive industry generating substantial waste by-products, TASEZ is exploring how to support cooperatives and small businesses that can turn this waste into income-generating opportunities, from recycling and materials recovery to green manufacturing. He also noted that the workshop had called for specialised technical partnerships with entities in the Department of Trade, Industry and Competition (the dtic) and other automotive sector bodies to enhance BBBEE scorecards in ways that are practical and impactful. “We want future engagements to be more focused, whether it’s on training, supply chain inclusion, or skills development,” Khuzwayo said. “If we’re told that South Africa will need 10 people skilled in robotics in the next five years, we want to ensure we’ve already started developing them locally. We can’t say ‘we can’t find them’, we must create them together.” The BBBEE workshop marked the start of a new cycle of collaboration between TASEZ, its tenants, and the communities surrounding the Silverton automotive hub. Rather than treating empowerment as a tick-box exercise, Khuzwayo said, the goal is to make it a shared ecosystem of value creation. “This cannot be a TASEZ issue alone,” he concluded. “Transformation and growth are only possible through collaboration. We need business, education, youth, and communities to come together so that the benefits of industrial development are truly shared by all.” The day’s discussions underscored that BBBEE needed to be more than just a policy. It needed to be a partnership model in action, designed to ensure that as the TASEZ grows, so too do the people and enterprises around it.

NEV Summit sets clear direction for South Africa’s green mobility future

News / By Tasez

By Mandla Mpangase Day 1 of the New Energy Vehicles Summit provided much to think about. The opening day of the inaugural New Energy Vehicle (NEV) Summit in Midrand proffered a compelling combination of insights, inspiration and strategic direction, positioning South Africa, and Gauteng in particular, as a frontrunner in Africa’s transition to sustainable mobility. From the science behind hydrogen and battery-powered vehicles to the policies shaping South Africa’s green mobility roadmap, Day 1 covered a broad spectrum of issues. Delegates explored global trends, drew lessons from international case studies, including from China, and examined local readiness across policy, skills, and industry. In his summary remarks on the day, the CEO of the Tshwane Automotive Special Economic Zone (TASEZ), Dr Bheka Zulu, noted that the discussions were “not just about dialogue, but about direction”. Every presentation, he said, “was the emergence of a shared vision; one that sees South Africa transitioning into sustainable mobility and industrial renewal”. Gauteng, as the country’s industrial heartland, was described as playing a strategic role in the future of the automotive ecosystem, leveraging its strong logistics infrastructure and manufacturing base to attract investment and drive innovation. “Today affirmed South Africa’s readiness to lead Africa’s green mobility future,” Dr Zulu added. “The key message was about collaboration – between government, industry, academia, and innovators – to create jobs, empower small, medium and micro enterprises, and localise technology.” Dr Zulu likened this collaboration to a relay race, where each participant contributes their unique strength at different stages: “It’s not about competition, but coordination, knowing when and how to pass the baton to build momentum together.” Throughout the day, recurring themes included industrial transformation, skills development, and ensuring that technology and labour advance together for a just transition. Speakers also emphasised policy clarity and investment confidence, highlighting growing optimism in the local NEV manufacturing sector. The province called for “urban-driven industrialisation” that integrates energy policy, investment frameworks, and urban planning, aligning Gauteng’s innovation and logistics strengths to create a globally competitive green automotive hub. As the day concluded, participants agreed that the NEV revolution “is no longer a possibility, but a present reality”, and that South Africa’s leadership must act boldly and decisively to harmonise policy, infrastructure, and workforce development. “Our NEV transition is not a single-sector effort – it’s a national movement,” Dr Zulu emphasised. “We must plan boldly, invest bravely, and move together to make Gauteng cleaner, smarter, greener, and more connected.”

Gauteng takes the wheel: Driving Africa’s NEV future

Thought leaders / By Tasez

South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity, and the economic heartland of the country must take the lead in embracing New Energy Vehicles as a core economic sector for the country – and the rest of Africa, writes Lebogang Maile, Gauteng MEC for Finance and Economic Development. Gauteng is stepping up to lead South Africa and Africa into the new-energy vehicle (NEV) era. The province, already the country’s economic and industrial centre, is positioning itself as the continent’s NEV hub. The province hosted its inaugural NEV Summit on 22–23 October 2025, during the country’s Transport Month, under the auspices of the Gauteng Growth and Development Agency, along with the Automotive Industry Development Centre (AIDC) and the Tshwane Automotive Special Economic Zone (TASEZ). South Africa’s shift to green mobility is no longer a distant idea, it is now a commercial necessity. Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility. The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles. The sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. In addition, global markets, particularly the European Union, are tightening carbon regulations. For South Africa to keep exporting vehicles and stay competitive, it must move fast to build an industry that produces low- and zero-emission cars. Laying the foundation The transition is backed by strong policy frameworks. The South African Automotive Master Plan 2035 (SAAM 2035) sets clear goals for increasing local content, boosting exports, and creating inclusive growth. The government’s White Paper on electric vehicles, approved at the end of 2023, provides a roadmap for building the NEV ecosystem from production and charging infrastructure to skills development and consumer incentives. Although the paper references electric vehicles, South Africa must take into account other green initiatives, such as hydrogen and battery. The policy direction is clear – our job is to make sure Gauteng becomes the first mover. The NEV transition is about jobs, skills, and industrialisation, not just greener cars. We are ready to lead Africa in this journey. Why Gauteng? South Africa’s economic hub has all the right ingredients: skilled workers, advanced manufacturing infrastructure, financial and logistics networks, and a strong automotive heritage. Ford, based in the City of Tshwane, has been in South Africa for over a century. Gauteng’s existing automotive value chain makes it the natural home for Africa’s NEV future. The province already hosts major original equipment manufacturers like BMW, Ford, and Nissan, and supplier networks that can pivot to battery, electronics, and component manufacturing. We already have the backbone, from vehicle assemblers to tiered suppliers. What we are doing now is aligning that value chain with new technologies, from battery assembly to software integration. The transition is not just about attracting investment; it’s about future-proofing Gauteng’s manufacturing economy. Turning policy into factories Gauteng is now focused on turning national policy into tangible projects. The Automotive Investment Scheme (AIS) and EV production incentives announced by the Department of Trade, Industry and Competition (the dtic), including a 150% investment allowance for qualifying projects, are key tools to make that happen. We are working closely with the dtic and industry stakeholders to streamline approvals and remove red tape. Investors do not want promises; they want certainty. Gauteng is offering that – a clear pathway from policy to plant. But we are also well aware of the challenges we face, from electricity reliability and logistics to the high costs of new technologies. One of the key projects we have put in place to overcome these is the creation of a dedicated automotive hub in the City of Tshwane, with stable power, fast-tracked permitting, and shared testing and recycling facilities to lower entry barriers for manufacturers. Building demand and inclusion A vibrant NEV industry also needs a domestic market, and Gauteng is exploring ways to stimulate demand through public fleet electrification, taxi modernisation programmes, and municipal procurement. Demand creation will be critical to attracting more investors. OEMs and suppliers want to see that South Africa is serious about NEVs – that there is a real market for these vehicles. If we in government lead by example through fleet conversion, others will follow. Gauteng has the opportunity to set that example for the rest of the continent. Beyond manufacturing, Gauteng’s NEV strategy emphasises skills development and inclusion. The transition is being designed to create opportunities for black-owned medium, small, and micro enterprises, youth, and women entrepreneurs in new parts of the value chain, from charging infrastructure to digital mobility services. A turning point for the economy The upcoming NEV Summit is expected to produce a clear action plan: identifying priority sites, announcing anchor investors, setting timelines for disbursing incentives, and mapping out power and logistics upgrades. This summit was not just about speeches; it was about signatures. We want commitments, timelines, and projects that will create jobs and secure Gauteng’s place at the centre of Africa’s new energy future. If Gauteng can convert its strategic intent into action, the province will not only revitalise South Africa’s automotive manufacturing base but also anchor the continent’s NEV revolution. The race to lead Africa’s green mobility future has begun, and Gauteng plans to be first across the line.

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

Thought leaders / By Tasez

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

Future of auto industry at centre of national discourse – MEC Maile

News / By Tasez

By Mandla Mpangase The discussion on the importance of new energy vehicles is taking place at a critical time in South Africa, where the future of the automotive industry is at the centre of national discourse, Gauteng MEC for Economic Development and Finance Lebogang Maile told the New Energy Vehicles Summit in Midrand today. The summit comes at a time when Gauteng is positioning itself as the automotive industrial hub for Africa, leveraging its existing automotive base, advanced logistics, and skills ecosystem. Critical to this positioning is the need to embrace the revolution that is the new energy vehicles (NEVs). Gauteng is determined to lead South Africa’s transition to electric and low-carbon mobility in line with global decarbonisation imperatives and the South African Automotive Masterplan 2035. “The South African automotive industry is facing a tough operating environment, heightened by the imposition of a unilateral 30% reciprocal trade tariff by the government of the United States, which has consistently been South Africa’s second-largest trading partner and key export destination for South African-manufactured vehicles,” Maile said, adding that on the manufacturing side, Original Equipment Manufacturers (OEMs) also face mounting challenges. South Africa’s automotive sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the United States Trade Expansion Act of 1962, which specifically targets automotive exports. Key sector “The South African automotive industry is a cornerstone of the economy and contributes 22.6% to total domestic manufacturing output. It also directly supports over 110 000 formal sector jobs – a significant number in an economy that is battling with the creation of sustainable employment.” The MEC noted that a few months ago, naamsa (the Automotive Business Council) noted that the tariffs, and the broader uncertainty in our trade relations with the United States strike at the heart of South Africa’s industrialisation agenda and threaten future investment in high-value manufacturing. Mercedes Benz in East London, for example, exports at least 90% of its vehicles to the United States, making evident the impact of such an uncertain economic climate on the East London Special Economic Zone. “Tariffs have had a severe impact on South Africa’s automotive industry, leading to a sharp drop in exports to the United States, job losses, company closures, and reduced GDP contribution of the automotive sector.” Vehicle exports to the United States have fallen drastically, with one report noting an 82% drop in the first half of 2025 compared to the previous year. Challenges “The industry has also experienced layoffs and job losses, with thousands of positions under threat due to companies losing contracts and reducing production,” the MEC said, adding that at least 12 company closures have been linked to these pressures, impacting the component manufacturing sector and its over 80 000 employees. Communities like those in East London, and the broader Eastern Cape, which are heavily dependent on the automotive sector, are at risk of economic destabilisation. Beyond job losses, the National Union of Metal Workers of South Africa (NUMSA) has also highlighted the risk of short-time that has been introduced at 26 companies in the Eastern Cape – many based in Gqeberha. “Various economists have identified three structural challenges that are currently confronting the automotive industry, specifically, navigating South Africa’s exposure to tariff barriers in the United States, as outlined, the danger of dumping, and adapting to the global shift towards new energy vehicles,” said Maile. However, he noted, while these are real challenges with far-reaching implications, critical interventions can transform them into opportunities – particularly in relation to new energy vehicles. “New energy vehicles are crucial for South Africa’s future as they offer significant economic and environmental benefits, including reducing greenhouse gas emissions and lowering fuel costs, while supporting industrial growth and job creation through local manufacturing and infrastructure development.” New energy vehicles produce significantly fewer greenhouse gases and pollutants compared to internal combustion engine vehicles, which can help in combating urban air pollution and climate change. The place of new energy vehicles is also clear, with their lower operating costs and potential for industrial growth, the MEC said: “Electricity is cheaper than petrol and diesel, and energy vehicles have fewer moving parts, reducing overall maintenance costs.” Additionally, as South Africa’s automotive industry contributes over 4% to GDP and 12.5% to exports, transitioning to new energy vehicles can safeguard this sector’s global competitiveness, especially with European Union bans on internal combustion engine vehicles by 2035. New energy vehicles are also key to a Just Energy Transition, reducing reliance on fossil fuels, which can help reduce reliance on imported fossil fuels that are increasingly subject to price volatility. Recognising potential NEVs could position South Africa to become a hub for regional battery production and new energy vehicle technology. Recognising this potential, the national government has developed policies covering for NEV production, infrastructure, and skills development. “As a result of this intervention, a 150% tax rebate for new energy vehicle production starts in March 2026, with over R1-billion having recently been allocated to support local new energy vehicle and battery manufacturing.” The MEC said that such investments in local battery production address the salient challenge that new energy vehicles pose – mainly that they are significantly more expensive than internal combustion energy vehicles due to import duties and more importantly, a lack of local battery production. A strategy is currently being finalised to secure supply chains for critical minerals like cobalt, lithium, and nickel, which are essential for battery production. “This is part of a larger plan to beneficiate these materials locally instead of exporting raw forms.” This is in alignment with the Gauteng’s mineral beneficiation strategy that focuses on adding value to raw materials by transforming them into higher-value products, with a key role in refining precious and base metals. Developing local battery manufacturing capacity for NEVs, and mineral beneficiation broadly, will address economic diversification, ensuring that the province moves beyond raw material extraction to creating a more value-added mineral economy and to retain more wealth within the province and the country broadly.