Tshwane Automotive Special Economic Zone Archives - Page 5 of 11

SMMEs are levers of innovation-led industrialisation that can diversify and decarbonise SA’s economy

By Mandla Mpangase The 2025 Naacam Show is taking place at a time when the automotive sector is undergoing transformation that is driven by technology and decarbonisation. “We meet as the global economy faces strong headwinds brought about by new shifts towards unilateralism and protectionism,” the Minister of Small Business Development, Stella Ndabeni, said in her address on the second day of the show, 14 August 2025. “We know the US tariffs will impact the market competitiveness of OEMs, including those located in (the Eastern Cape).” This year, the Naacam Show is taking place in Gqeberha in the Eastern Cape, displaying the capabilities within South Africa’s leading manufacturing sector. TASEZ, too, is attending the Naacam Show, sharing information about the special economic zone. Emphasising the tone set the day before by the Minister of Trade, Industry and Competition, Parks Tau, Ndabeni emphasised that failure to position the country strategically and reprioritise aspects of the South African Automotive Master Plan, could see us falling behind. “This is something all of us need to galvanise around,” she said. “We know we need to tweak our model. Rebates on imports have improved the competitiveness of OEMs, but have not enabled the development of local supplier capabilities. “We haven’t built the necessary capabilities in design and innovation, and in specialised components.” The Naacam Show, the minister noted, is more than an industry exhibition. It is a platform to benchmark where South Africa stands as a supplier of components, and provides insights into what the government, original equipment manufacturers, and representative bodies like Naacam need to do to position themselves in a rapidly changing industry. “The overall competitiveness of the South African automotive sector depends on the extent to which we can master vertical integration across the value chain,” Minister Ndabeni added. “Shared economic infrastructure like automotive supplier parks and special economic zones have played an enabling role in promoting such integration, as have industry clusters.” Like the Tshwane Special Economic Zone (TASEZ), the Department of Small Business Development is committed to the inclusion of small, medium, and micro enterprises (SMMEs), including the automotive sector. “The reality is: without deep transformation, the sector will not meet the inclusive growth targets set out in the South African Automotive Master Plan 2035 (SAAM 2035,” Ndabeni said. With its focus on developing SMMEs, the Department of Small Business Development, together with the Automotive Industry Development Centre (AIDC) and the International Labour Organisation (ILO), completed a detailed feasibility study for the establishment of a Gauteng-based automotive cluster. “The study confirmed that such a cluster is not only feasible, but strategically necessary to address coordination gaps, improve supplier readiness and deepen SME integration in the value chain, especially the production of high-quality components by SMEs.” In addition, department, through the Small Enterprise Development and Finance Agency is leveraging strategic partnerships to support SMMEs through: “These partnerships are grounded in co-investment, shared learning, and the common goal of expanding opportunities for small businesses in the automotive space.” The Department of Small Business Development also has targeted financial tools to help SMMEs, such as: The minister pointed out that in her 2025/2926 budget vote speech, she announced that the department would support one million SMMEs. “I announced the establishment of a development fund, capitalised at R2.95-billion over the medium-term expenditure framework (MTEF), targeting new entrants, including micro and informal businesses,” Ndabeni said, encouraging micro enterprises in the automotive after-care and services market to apply. Announced at the same time were the establishment of a commercial fund for more high-growth SMMEs capitalised at just under R1-billion over the MTEF, a women’s fund capitalised at R300-million, and a youth fund also capitalised at R300-million. Ndabeni also spoke about South Africa’s Presidency of the G20 this year, noting that the Department of Small Business Development would leverage South Africa’s role to position SMMEs and startups as critical levers of innovation-led industrialisation that diversifies and decarbonises the economy. “This is especially relevant in sectors like automotive manufacturing, where innovation, localisation, and inclusive industrialisation go hand in hand. You cannot do one without the other, and we must build a coherent ecosystem to enable such integration.” The minister concluded her address, emphasising the country’s commitment to ensuring SMMEs are at the forefront of the industry, as innovators and entrepreneurs, as small producers, as solution providers, and as global players.

SA’s auto industry is the backbone of the country’s economic growth

News / By Tasez

By Mandla Mpangase The automotive industry holds significant potential for shared prosperity through targeted industrial development, according to South Africa’s Deputy President Paul Mashatile. He was delivering the keynote address on 14 August 2025 at this year’s Naacam Show, currently taking place in Gqeberha, in the Eastern Cape. The automotive sector is one of South Africa’s most strategically important and internationally linked industries, accounting for 22.6% of manufacturing output and 5.2% of the country’s gross domestic product. Although the sector is a success story of industrial policy, it is important to increase employment in the sector. Currently, 115 000 people are employed in the sector, with more than 80 000 of those working in component manufacturing. The deputy president noted that the industry is export-oriented, globally competitive, and plays a vital role in regional and national industrial development. In 2024, the component sector exported R62.5 billion of components. “We must never allow the loss of these gains because of external and internal pressures. I say this with concern because the employment levels in the sector have been under strain due to ongoing economic pressures and reduced production volumes.” Naacam, the National Association of Automotive Component and Allied Manufacturers, recorded 12 company closures over the past two years, affecting the livelihoods of 4 000 individuals. “What is of more concern are the recently released figures by Statistics South Africa showing that the country’s unemployment rate has climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter,” Mashatile said. “This latest figure is a clear indication that the nation’s unemployment crisis remains an urgent concern.” More effort is needed to combat unemployment, including improving education and skills to match labour market demands, promoting entrepreneurship and small enterprises, and investing in public employment programmes to generate jobs. TASEZ is currently attending Naacam to share knowledge and monitor the latest developments and trends in the sector. The deputy president noted that the government supports the automotive industry through a combination of investment incentives, improved policy frameworks, and infrastructure development, including: Guiding the sector is the South African Automotive Master Plan 2035 (SAAM), which aims to build a globally competitive and transformed industry. SAAM goals include growing vehicle production to 1% of global output (1.4 million vehicles), increasing local content to 60%, doubling employment to 224,000 employees, and deepening transformation and value addition, with 25% Black-owned involvement at the Tier 2 and Tier 3 component manufacturer level. The Automotive Production Development Programme Phase 2 is the policy programme intended to support and enable the realisation of the objectives of SAAM. “We recognise the industry’s significant role and see it as the backbone of our economic growth, promoting industrial development and encouraging innovation,” Mashatile said. “I am of the view that by increasing investment in research and development, we can use the power of technology to improve efficiency and sustainability, ensuring that our products and services stay competitive in the global market.” New opportunities for growth could be unlocked through nurturing a culture of collaboration and partnership among manufacturers, suppliers, and stakeholders, he added. Support for the African Continental Free Trade Area “This sector, not just in South Africa but in Africa as a whole, has emerged as a critical area of investment, providing substantial prospects for growth and development.” In this context, it was important to acknowledge the significance of the African Continental Free Trade Area (AfCFTA) agreement on economic integration and industrialisation, which is projected to draw additional international investment into the African automotive industry. “The agreement has the potential to significantly boost the automotive industry across the continent by reducing trade barriers, fostering regional value chains, and harmonising regulations. This could lead to increased production, lower costs for consumers, and a more competitive market.” The implementation of the agreement has the potential to lessen the dependency of African countries on developing countries for automotive components and completed vehicles by promoting regional value chains and increasing local production. “Creating a single continental market for goods and services could potentially lead to increased trade, investment, and job creation within Africa.” However, Mashatile added that this does not suggest that South Africa does not need other nations as trading partners. “We believe in diversifying our investments and engaging in trade with several partners.” Mashatile explained that the Cabinet has adopted a new trade proposal to the United States that aims not just to settle the 30% tariff but also has ramifications for over 130 other trading partners who may reroute products into the South African market. “I must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House. “It is probable that South African suppliers who provide support to domestic original equipment manufacturers that export automobiles or integrated systems to the United States would experience volume cutbacks. This will put pressure on production planning, employment decisions, and investment choices.” The tariffs threaten to disrupt well-established trade flows and weaken the global competitiveness of South Africa’s automotive manufacturing ecosystem. “However, South Africa remains resilient and steadfast in its efforts to grow and protect our economy. We will continue engaging with the USA to identify practical solutions.” Attracting significant investment and driving innovation could strengthen South Africa’s manufacturing capabilities and global competitiveness. Proactive transformation of the sector “We can increase localisation with existing and potential new original equipment manufacturer entrants to market, achieving a 5% growth in South Africa’s localisation rate, potentially resulting in R30-billion in new local procurement.” In addition, research has indicated that South Africa is well positioned to localise high-value new energy vehicle components, including fuel cells, thermal management systems, e-axle and high-voltage battery mineral beneficiation and assembly. “At the heart of our vision for the automotive industry is a commitment to shared prosperity. We believe that sustainable development must benefit all members of society, empowering individuals and communities to thrive and succeed.”

SA’s automotive sector can model African industrial resilience, says Minister

News / By Tasez

By Mandla Mpangase The annual Naacam Show takes place at a defining moment for the South African automotive sector, which is facing intersecting challenges that demand collaboration. With these words, Minister of Trade, Industry and Competition, Parks Tau, began his assessment of the automotive manufacturing sector in a keynote address to the Naacam audience in Gqeberha on 13 August 2025. This year’s show brings together automotive component manufacturers, public and private sector stakeholders, and service providers to foster collaboration, with the aim of galvanising the industry around the goals outlined in the South African Automotive Master Plan 2035. The automotive manufacturing sector is the cornerstone of South Africa’s manufacturing economy, contributing 5.2% to the country’s gross domestic product and 22.6% of the country’s industrial output. Despite these significant numbers, the industry faces several interconnected challenges, the minister noted. “Yet within these challenges lie transformative opportunities to redefine and leverage our global competitiveness.” The minister went on to urge all stakeholders to unify their actions across three pillars: on localisation, innovation, and inclusive transformation. Urgent challenges Although the industry employs 115 000 South Africans directly, with over 80 000 in component manufacturing alone, it faces the stark reality that domestic sales of locally produced vehicles plummeted to 515 850 units in 2024, far below the South African Automotive Master Plan 2035 (SAAM) target of 784 509. In addition, Minister Tau noted: “Importantly, 64% of vehicles sold here are imports, eroding local production scales.” Local content remains stagnant at 39%, well short of the 60% target, he said, adding this was at a time when United States tariffs are impacting significantly on the country’s R28.7-billion automotive exports. These pressures have triggered 12 company closures and over 4 000 job losses in two years. The erosion of the industrial value of the sector is exemplified by recent suspensions at Mercedes-Benz and other original equipment manufacturers. The path forward: Strategic imperatives “Localisation is not merely policy compliance, it is existential,” Minister Tau said. “A 5% increase in local content would unlock R30-billion in new procurement, dwarfing the R4.4-billion US export market.” However, to achieve this, “we must act collectively to address some of the bottlenecks to growth”. With this in mind, the Department of Trade, Industry and Competition is reviewing the Automotive Production Development Programme (ADPD) as a comprehensive way of responding to the challenges the sector is facing, but also to ensure regular growth in the sector meets the goals of the SAAM. Some of these reforms include the incentive structure and shifting duty credits to reward manufacturing instead of assembly credits. “Our critical minerals and metals strategy will prioritise beneficiating platinum group metals, copper, and manganese for high-value new energy vehicle components like fuel cells and batteries.” Digitisation, decarbonisation, and diversification – global competitiveness hinges on embracing disruption “At the dtic, we have been engaged on a path of developing a new industrial policy which focuses on decarbonisation, digitisation, and diversification. “As Naacam notes, carbon has become ‘part of the cost of doing business and increasingly, part of the value too’.” As the globe shifts to new energy vehicles and competition from China, it is crucial that South Africa scale new products such as e-axles and thermal systems, and markets, particularly under the African Continental Free Trade Agreement. Referring to development around new energy vehicles, the minister reported that amendments of the automotive production and development programme phase 2 legislative framework for the inclusion of electric vehicles and associated components have been completed. In addition, the relevant amendments to the existing Automotive Investment Scheme (AIS) guidelines are being finalised to align with APDP2 amendments and the energy vehicle legislative framework. “The Taxation Laws Amendment Act, gazetted on 24 December 2024, introduces a 150% capital allowance for qualifying investments in energy and hydrogen vehicle production. It covers assets such as buildings, plant, and equipment brought into use between 1 March 2026 and 1 March 2036.” A critical minerals strategy and battery value chain master plan are also being developed. A comprehensive skills gap analysis was completed under the energy vehicles skills workstream. Curricula and certification programmes are now being developed with Tshwane University of Technology, Cape Peninsula University of Technology, Durban University of Technology, and Unisa. A pilot project involving 100 students is expected to be rolled out in Q1 of 2026 once the academic materials are finalised. Transformation: Scale, skills, and equity “We have walked a long journey with the automotive sector on transformation. It therefore goes without saying that inclusion drives growth.” SAAM’s target of 130 new black-owned manufacturers is advancing, with 26 black-owned small, medium, and micro enterprises (SMMEs) exhibiting at the 2025 Naacam Show. However, the pace needs to be picked up. “To this end, we are hopeful that the industry will support the endeavour of the Transformation Fund that we are pursuing at the dtic with the view to enhancing overall transformation through Enterprise and Supplier Development (ESD) funds.” The minister added: “We need to accelerate skills development to ensure that we prepare our labour force for the dramatic changes that artificial intelligence will bring into the sector.” The government is also working hard to eliminate compliance burdens and reduce red tape, which inhibits investment into the country’s automotive sector. “Our policy response is accelerating, and we plan on introducing an Omnibus (General Laws Amendment) Bill, which looks to fast-track high-impact investments and projects within 90 days.” In addition, the government is looking at the impact of imports into the country and the impact they are having on local production. “We want to grow the sector, so our first option must not be to wield a stick but rather offer a carrot to these companies to attract more investment into the country, thereby increasing the value-add of particularly our component manufacturers.” Minister Tau also encouraged the industry to accelerate collaboration. “OEMs need to continue to honour local procurement targets and mentor and invest in SMMEs.” Tier 1 Suppliers must drive equity partnerships and Tier 2/3 development. “Naacam’s

Women’s Day celebrations at TASEZ

Uncategorised / By Tasez

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

Manufacturing has the potential to transform the economy and create jobs

News / By Tasez

By Mandla Mpangase Expanding manufacturing is not merely a desirable goal for Africa; it is an essential foundation on which the continent’s economic transformation, job creation, and long-term prosperity depend. This strong message was shared by Gauteng MEC for Economic Development, Lebogang Maile, at the Manufacturing Indaba 2025, taking place at the Sandton Convention Centre in Johannesburg. “This year’s gathering takes place under complex global economic and political realities where the African continent, and the entire global south, must re-think its place in the geo-political landscape,” the MEC said. “Re-thinking our place in this landscape also necessitates that we re-think how we are managing our economies and trade relationships,” Maile said, adding: “It is becoming increasingly evident that the future of our continent lies in our ability to strengthen collaborations.” The message resonates strongly with the Tshwane Automotive Special Economic Zone (TASEZ), which has set out on a mission to be a catalyst for employment, transformation, and socio-economic development and industry growth by being a node attracting automotive suppliers and automotive manufacturers, assemblers and supporting services. The MEC noted that agriculture and raw material exports had long been the backbone of African economies; the future lies in a sector that has fuelled the rise of every modern economy: manufacturing. “The expansion of manufacturing is not merely a desirable goal for the continent. It is an essential foundation upon which Africa’s economic transformation, job creation, and long-term prosperity depend.” The manufacturing sector’s ability to absorb large numbers of workers, foster innovation, and build complex value chains, makes it a critical pillar for sustainable development, Maile added. The South African Automotive Master Plan Something that is important to the TASEZ efforts to support the South African Automotive Master Plan 2035, is that of localisation and by extension, beneficiation of materials that are mined in the country. The master plan sets out several priorities to deliver on its vision of creating “a globally competitive and transformed industry that actively contributes to the sustainable development of South Africa’s productive economy, creating prosperity for industry stakeholders and broader society”. Included in the priorities is increasing local content used in manufacturing by 60% by 2035 – critical to this is the ability to beneficiate local minerals for use in manufacturing. As Maile noted, “Exporting raw materials without adding value reinforces economic dependence on foreign nations that process and manufacture these materials for profit.” Manufacturing offers an opportunity to move up the value chain, diversify economies, and reduce dependence on volatile international markets. “The continent’s demographic dividend could be the most important instrument in defining the future of the manufacturing sector.” Manufacturing is also uniquely placed to provide the scale and diversity of jobs required for Africa’s youth – Africa has a young population that is growing. It is expected that the continent’s population will double by 2050 to reach 2.5 billion people, with the majority being under the age of 25. “Manufacturing can offer employment across a spectrum of skill levels, from low-skilled assembly to high-skilled engineering. Moreover, manufacturing jobs tend to offer higher wages, better job security, and more opportunities for advancement compared to informal and even agricultural work.” Adding value – and jobs Value addition not only increases export revenues but also fosters the development of supporting industries such as packaging, transportation, marketing, and financial services. These interlinked sectors create a multiplier effect, generating jobs and boosting incomes across the economy. “In the Gauteng Province, we see the value of our investment in the manufacturing sector,” Maile said. It is the largest sector in the provincial economy, employing more than 500 000 people, and is also the biggest in South Africa, contributing more than 33% to the gross domestic product. Manufacturing is also a powerful conduit for technology transfer. “As African firms engage in manufacturing, they gain access to new machinery, production processes, and management techniques.” Partnerships with foreign firms and integration into global value chains further accelerate the transfer of knowledge and skills. At the moment, Africa’s share of global manufacturing output remains less than 2%. “But the continent’s potential is enormous,” Maile said. The African Continental Free Trade Area, which seeks to create a single market of over a billion people, offers an unprecedented opportunity for manufacturers to achieve economies of scale, access new markets, and increase competitiveness. “With the right policies, African manufacturers can integrate into global value chains, supplying not only regional markets but also Europe, Asia, and the Americas.” Despite its promise, the development of manufacturing in Africa faces significant hurdles, including inadequate infrastructure, unreliable energy supplies, limited access to finance, bureaucratic red tape, and skills gaps. “Addressing these challenges requires coordinated action by governments, the private sector, and international partners.” Key is investing in infrastructure. Reliable roads, ports, energy, and digital networks are essential for competitive manufacturing. “We must also prioritise improving the business environment. Streamlined regulations and transparent governance attract investment and foster entrepreneurship.” Skills are needed Another message from Maile hit home for TASEZ: making the building of human capital a key priority. TASEZ has launched its training academy to provide business-related skills to small, medium, and micro enterprises (SMMEs) as well as technical skills to workers who will be dealing with a changed automotive manufacturing sector that is focused on new energy vehicles. “Education and vocational training tailored to industry needs will ensure a skilled and adaptable workforce,” Maile told the Manufacturing Indaba. In addition, regional integration is one of the most critical priorities if the continent is to realise its manufacturing potential. “Strengthening trade ties and harmonising regulations across borders is crucial,” the MEC said. “Regional integration significantly boosts manufacturing economic development by expanding markets, fostering specialisation, and promoting innovation and efficiency. It allows countries to overcome limitations of smaller domestic markets, creating larger customer bases and facilitating economies of scale in manufacturing.” Integration also encourages specialisation within regional value chains, leading to increased efficiency and competitiveness. In his conclusion, the MEC reminded the audience: “The choices made today will determine whether the

TASEZ takes steps towards a zero-carbon footprint

News / By Tasez

By Mandla Mpangase Setting up a sturdy, resilient and green energy mix for the Tshwane Automotive Special Zone (TASEZ) is a must-do on so many levels. Electricity is essential for driving manufacturing: automotive Original Equipment Manufacturers (OEMs) require a constant and consistent supply, and globally, countries are demanding clean energy products. A key aspect of the TASEZ business plan is to mitigate any risk in the energy supply chain and offer various alternatives, from solar to gas to power. “It is imperative that TASEZ, through its advancements in the formulation of a green energy mix solution, shares lessons and benchmarks with other industrial development zones and special economic zones (SEZs) that are underway with development of their green energy solutions,” says TASEZ head of infrastructure development, Andile Sangweni. “In this way, TASEZ becomes a catalyst in advancing green energy considerations.” TASEZ has positioned itself as a benchmark for green industrialisation through a 25-year solar photovoltaic rooftop and battery storage project across the 12 factories in its hub, reducing reliance on Eskom and enhancing energy resilience. In developing its green energy strategy, TASEZ has undertaken various initiatives in gaining a better understanding of the solar independent power producer model and its benefits. One such initiative was a due diligence mission to China that validated the technical, financial, and socio-economic viability of the solar initiative. In addition, there has also been a focus on the integration of local small, medium and micro enterprises (SMMEs) and labour from the City of Tshwane’s townships into the solar value chain. This also aligns with the Gauteng Provincial Government’s socio-economic development plans. These initiatives are not only mitigating power supply risks but also positioning TASEZ as a green manufacturing hub, particularly attractive to OEMs like the Ford Motor Company, which is TASEZ’s anchor tenant. The right thing to do Beyond being a smart business decision, it is also an ethical choice. The country’s National Development Plan, Vision 2030 envisages a country that has an energy sector that promotes: The United Nations’ Sustainable Development Goal 7 calls for access to affordable, reliable, sustainable and modern energy for all – placing an emphasis on clean energy. In Phase 1 of its development, TASEZ began introducing a mixed energy operation, with the planned installation of solar panels at its zone facilities, currently underway towards implementation. TASEZ, which is strategically based in the heart of Gauteng’s automotive manufacturing hub, has emerged as a trailblazer in renewable energy integration, particularly through its Solar Independent Power Producer (IPP) and green energy initiatives. TASEZ is a key driver in enabling the export of products worldwide and is committed to green manufacturing. It is predicted that beyond 2030, the country will need environmentally-friendly energy sources to retire the current fleet of coal-fired power stations. Now, with the start of its Phase 2 development, TASEZ is working closely with Chinese energy supplier Heshun Energy, which has its headquarters in Xiamen, in the Fujian Province, on expanding its energy mix. Heshun Energy was the winning bidder to finance, design, supply, install, operate and maintain solar photovoltaic rooftop power panels and battery storage systems in the 12 factories based at TASEZ for a period of 25 years. At the end of that period, the plant will be transferred to TASEZ. Inclusive development As with all TASEZ’s projects, Heshun Energy is required to meet the requirement of setting a minimum target of 30% to subcontract local small, medium and micro enterprises and labour from the local communities, targeting specifically Wards 6, 15, 18, 28, 38, 41, 43, 67 and 86. Heshun Energy is engaged globally in the investment, construction and operation of distributed photovoltaic power stations (using solar energy) and distributed energy storage systems, with a focus on providing safer and more reliable green energy solutions. Some of its solutions have been implemented by Coca-Cola and China International Marine Containers, among others. “We need to harness different energy solutions, not only for our own sustainability, but also for the sustainability of the manufacturing that takes place at the economic hub,” CEO Dr Bheka Zulu noted during a presentation to a delegation of the Southern African Development Community to the zone. The European Union, for example, will not buy any imported vehicles that emit CO₂ from 2035, a short decade away. “We are already preparing to export abroad products that do not have a carbon footprint.” TASEZ’s aim is to attain a carbon-neutral footprint by 2027: “We don’t want to wait until 2035,” the CEO added. “Heshun Energy will be providing TASEZ with some of the energy we need in our SEZ,” Dr Zulu said.

TASEZ Phase 2 underway as new reservoir site is handed to contractor

News / By Tasez

By Mandla Mpangase Phase 1 of South Africa’s most successful special economic zones – the Tshwane Automotive Special Economic Zones – has scarcely wrapped up, and the dedicated economic hub is already turning to expanding its operations. Thursday, 3 July 2025, saw the first sod being turned as a key site was handed over to the contractor, MES Major Projects, a wholly black-owned local company, for the construction of a vital water reservoir for the zone. The task is to build a 200-ton reinforced concrete 15Ml reservoir standing 12m in height. Joining TASEZ CEO Dr Bheka Zulu at the event were leaders from the City of Tshwane, including Executive Mayor Dr Nasiphi Moya, Deputy Executive Mayor, Eugene Modise, and several MMCs, a team from the newly appointed contractor lead by managing director Musa Sambo, councillors from the neighbouring townships of Eersterust, Mamelodi and Nellmapius, and members of the local communities. So important is this development, TASEZ board member for infrastructure development, Vuyo Zithumane, noted: “We are launching one of the critical dependencies for the entire development of others, and especially Phase 2.” Zithumane, who is also the City of Tshwane’s COO, added that the political principals in the City of Tshwane took the conscious decision to prioritise this development, making a financial allocation within the City’s budget. TASEZ is a unique project, with shareholders from each of the three tiers of government, along with Ford Motor Company; the Department of Trade, Industry and Competition represents the national government, the Gauteng Department of Economic Development represents the province, and the City of Tshwane represents local government. Addressing the gathering, Dr Moya spoke about the City of Tshwane’s ambitious revitalisation strategy that is aiming for a 3.9% annual growth by 2029, targeting 80 000 new jobs. “As the City, we need to not only make a pronouncement saying we are committed to economic growth … but must be seen in action,” Dr Moya said, adding the City was committed to retaining investments and improving infrastructure, such as energy and water security. “We can’t expect people to come and invest in our city if we do not provide the infrastructure that is required.” This new development is significant, not only to the City of Tshwane, but to its residents, she added. The most recent statistics indicate that unemployment in the City of Tshwane has increased to 38.4%. Noting the sombre statistic, the executive mayor said the efforts of the City of Tshwane, supported by business and investment, were undertaken with the ordinary residents in mind. “A student at college who has studied something to do with automotive must know that there’s a future for them, because the City of Tshwane has an automotive centre here.” Noting the presence of members of the community, including the TASEZ Community Project Committee, which oversees the social compact between the local communities and the SEZ, Dr Moya also spoke about the importance of community involvement in the success of any development. “If communities understand the benefit of this project, then communities start to protect the projects that they have.” The appointed contractor is one of the success stories of TASEZ: during Phase 1 of the development, MES Major Projects was graded CE3 and today is a CE7. The work is expected to be completed within 12 months.

TASEZ makes an impact beyond SA’s borders

News / By Tasez

By Mandla Mpangase In a first for a South African special economic zone, the Tshwane Automotive Special Economic Zone (TASEZ) welcomed the heads of mission from the Southern African Development Community (SADC) to share information and talk about unlocking opportunities for economic growth in the region. On Monday, 1 July 2025, the TASEZ team, headed by CEO Dr Bheka Zulu, rolled out the red carpet for the distinguished SADC delegation – ambassadors, high commissioners, and chargés d’affaires – along with representatives from the Department of International Relations and Cooperation and the Department of Trade, Industry and Competition. This gathering was not just a simple meeting – it was a deliberate step toward weaving stronger ties between neighbours, aligning with the goals of SADC, the Southern Africa Customs Union, and the African Continental Free Trade Area. TASEZ gave the delegation a front-row seat to South Africa’s important automotive manufacturing industry and the exciting opportunities for partnerships and investments that could uplift not just South Africa, but the entire SADC region. Welcoming the SADC delegation to Africa’s first automotive city, Dr Zulu provided a telling context for their visit: TASEZ has a footprint beyond South Africa. “We are part of the 244 plus SEZs that exist in the African continent, and we’re part of the 5 000 plus that exist globally.” Driving industrial growth SEZs are seen as economic and infrastructural drivers. TASEZ was set up to support a significant investment by the Ford Motor Company – bringing component manufacturers closer to the Ford factory in Silverton, ensuring a streamlined, just-in-time, just-in-sequence provision of essential parts for the Ford Ranger. Critical to the success of TASEZ was the joint strategic partnership between all three tiers of government via the Department of Trade, Industry and Competition, the Gauteng Department of Economic Development, and the City of Tshwane, along with catalytic partnerships with the private sector. Over the five years TASEZ has been in development, it has seen 8 000 direct jobs and 15 000 indirect jobs created in the value chain. In addition, the SEZ has provided R1.7-billion towards small, medium, and micro enterprise (SMME) projects. “We’ve been a catalyst for about R30-billion investment to date,” Dr Zulu. He noted that none of this would have happened if it were not for the facilitation of the diplomats. Dr Zulu emphasised the lessons learnt by TASEZ during its development, offering to share the hard-earned knowledge with SADC. “We have a test case, a real case that has worked in the short time of five years … TASEZ has been a game-changer in an industry that contributes 5.3% to the country’s gross domestic product (GDP). “The contribution of TASEZ with its partners within Ford, we are looking at having contributed 1% to the GDP,” Dr Zulu noted. Cross-border partnerships However, regional integration was important to the SEZ. “We cannot grow alone as a country; we need to grow with our brothers and sisters within the south and the continent.” Manufacturing development in Africa is viewed as an opportunity to lessen dependence on commodities and engage in economic diversification as a way to boost competitiveness in the region. Despite this, the continent still accounts for a very low share of global manufacturing and global manufacturing exports. Recent research indicates that economic development requires structural change from low to high productivity activities and that the industrial sector is a key engine of growth in the development process, most particularly the growth of manufacturing development. Diplomatic missions play a crucial role in facilitating investment flows and promoting economic cooperation between countries. They serve as an important conduit for information sharing, networking, and advocacy on behalf of their countries. The goals of the joint meeting were: SADC’s Vision 2050 Andrew Maswanganyi, from the Department of International Relations and Cooperation’s Directorate: Economic Integration and Infrastructure, pointed out that regional integration was about “the small things we do”. He noted that SADC’s Vision 2050 was an important strategy looking to create a region where its people have food security, are healthy and educated. SADC’s Vision 2050 aims to create a peaceful, inclusive, and competitive region that is middle-to high-income industrialised, where all citizens enjoy sustainable economic well-being, justice, and freedom. It is built on the three pillars of industrial development and market integration, infrastructure development, and peace, security, and good governance. The meeting at TASEZ was “an opportunity for South Africa and its sister countries to cement strong bonds of friendship”, Maswanganyi said. The chairperson of the SADC group, Zimbabwe’s ambassador David Hamadziripi voiced appreciation of the opportunity witness first-hand what is being done in South Africa in its push for industrialisation. The visit by the delegation “not only deepens our understanding of South Africa’s industrial strategy but also speaks to the spirit of regional cooperation in shared development”, Hamadziripi said. Some of SADC’s member states were grappling with the imperative of industrialisation, job creation and inclusive economic transformation. SEZ’s as catalysts for growth “This special economic zone is a testament to how targeted investment, infrastructure development and strategic collaboration between government, the private sector and local communities can create a dynamic industrial hub with strong linkages to both domestic and global value chains.” TASEZ offers important lessons on how SADC can leverage special economic zones to drive manufacturing innovation and trade competitiveness, while also building infrastructure, promoting SMMEs, building critical skills and creating opportunities for young people. “Special economic zones can serve as a model or as model platforms for collaboration with the potential to align such initiatives with cross-border supply chains, promote investment partnerships and share these practices across our member states.” Hamadziripi added: “We are also cognisant that industrialisation can be driven by a combination of factors, including policy coherence, skills development, innovation and infrastructure investment.” The visit to TASEZ was not just about observing, but also about learning and exploring how SADC can replicate and adapt these lessons to their respective countries. The automotive sector has been identified as one of the key sectors with demonstrable

TASEZ – a force for industrial renewal through skills development

News / By Tasez

By Mandla Mpangase The future of South Africa’s manufacturing sector lies in the hands of the school learners, who need to be ready for a fast-changing environment marked by the complexities of artificial intelligence and the drive towards a carbon-neutral world. The automotive manufacturing sector is already embracing green technology, AI development and design, and the change from combustion engines to new energy vehicles. These issues, along with much-needed entrepreneurial skills, are core to the work being done by the TASEZ Training Academy. In keeping with this drive to develop skills for the future in the automotive manufacturing sector, the Tshwane Automotive Special Economic Zone (TASEZ) will be working closely with the Department of Basic Education to support local schools of specialisation and technical high schools. The two signed a memorandum of understanding to develop curricula that produce entrepreneurs and skilled learners who are ready for the automotive industry, along with providing skills development focused on the STEM subjects of science, technology, engineering and mathematics. So important is this development that the Ribane-Laka school in Mamelodi was turned into a science and ICT school of specialisation. The refurbished school was officially opened on 7 May 2025 by Gauteng Panyaza Lesufi, who observed that education makes economic sense. He added that it was important to make sure the education system in the townships is relevant. The school will focus on the automotive and electronic sectors – which is where TASEZ comes into the picture. “Africa’s first automotive city is not just a special economic zone. It is a force for industrial renewal,” said TASEZ CEO, Dr Bheka Zulu. In opening the school, Lesufi noted: “Today, we are launching education for purpose, where our children will not be taught things that will not assist them. Our children will not be taught things that will be irrelevant when they leave school.” The Ribane-Laka school is the future of education, he added, pointing out that the learners from the school will benefit from TASEZ, Africa’s first automotive city. “Never before has anyone thought that a Ford Ranger would be inside the school premises, not to boast but to teach our children how to repair it when it is broken. No one thought we could have an engine inside the school premises where our children can explain its meaning; where our children can explain to you how an engine functions.” The first next-generation Ranger was built by the Ford Motor Company of Southern Africa at its plant in Silverton, City of Tshwane. The components for that car were manufactured by the tenants housed at TASEZ, which is located next to the original equipment manufacturer. Emphasising the message by the premier, Dr Zulu noted that the TASEZ Training Academy is not simply about skills programmes, it is about creating relevance. “We’re preparing young people for the future of work – advanced manufacturing, electric vehicles, industrial automation. We’re building a talent pipeline that our automotive manufacturing tenants can depend on. So, when they set up operations here, they’re not bringing in imported expertise. They’re hiring our people.”

TASEZ explores electric mobility and investment partnerships in China

News / By Tasez

TASEZ CEO Dr Bheka Zulu and Business Development Executive Msokoli Ntombana reflect on their vital fact-finding visit to China, writes Mandla Mpangase. In a bid to deepen South Africa’s foothold in the global electric mobility revolution, a delegation from the Tshwane Automotive Special Economic Zone (TASEZ) embarked on a groundbreaking business and mobility study tour of China from 21 – 30 April 2025. The delegation, led by TASEZ Chief Executive Officer Dr Bheka Zulu and Business Development Executive Msokoli Ntombana, visited leading Chinese cities and innovation hubs to explore strategic investment, electric vehicle (EV) manufacturing opportunities, and clean energy technologies. Organised by the South Africa-China Transport and Technology Think Tank (SACTT), in partnership with Zhejiang Normal University and Valternative, the China mobility study tour took TASEZ to the heart of global electric vehicle production: from Shanghai’s smart cities to Shenzhen’s autonomous mobility ecosystems. “This mission was more than just a learning experience,” stated Dr Zulu. “It was a strategic positioning exercise. “As South Africa navigates the future of automotive manufacturing, China offers a blueprint for rapid, sustainable, and scalable industrialisation in electric mobility. We needed to be at the forefront of that conversation.” The tour provided unprecedented access to China’s booming electric mobility ecosystem. TASEZ’s engagements included visits to: The tour also featured a vital diplomatic engagement with the South African consulate general in Shanghai, which pledged facilitation of future investment efforts and participation in the upcoming China International Import Expo, scheduled for November 2025. “We are no longer in the age where TASEZ only chases internal combustion vehicle assembly,” explained Ntombana. “TASEZ is evolving into a future-focused industrial platform – one that is open to new energy technologies, battery innovation, and smart logistics. “This tour helped us connect the dots between Chinese capabilities and South African potential.” Accelerating South Africa’s new energy transition China’s meteoric rise as a global EV leader has disrupted traditional supply chains and redefined auto manufacturing. With brands like BYD, NIO, and SAIC exporting in growing volumes, the global centre of gravity in the automotive industry is clearly shifting east. South Africa, and particularly Gauteng – which accounts for over 40% of the country’s automotive output – must adapt quickly to remain competitive. The visit was aimed at positioning TASEZ as a gateway for Chinese investors looking to establish operations in Africa, with a focus on electric vehicle production, green energy components, and value-chain localisation. “One of the biggest takeaways was witnessing how Chinese companies localise technology and scale it rapidly,” said Dr Zulu. “We saw factories that were established within a year and are now producing thousands of electric units daily. South Africa has the human capital, we have the land, and we have strategic trade links. What we need now is the technology and investment, and China is a willing partner.” From Shanghai to Shenzhen – a panoramic view of China’s EV future The journey started in Shanghai, where the delegation engaged with the Consul General and visited the Lingang Special Area, a free trade zone renowned for housing Tesla’s Gigafactory and other advanced manufacturing operations. Here, TASEZ drew inspiration on how spatial planning and industrial policy can be aligned for EV growth. From Qingdao, where MESNAC and Sailun operate, to Xiamen and Shenzhen, home to battery innovators and autonomous vehicle manufacturers, each city offered insights into supply chain agility, automation, and EV infrastructure. “What struck us most was how integrated China’s innovation ecosystem is,” Ntombana said. “Their universities, government policy, manufacturers, and even property developers work in sync to build mobility cities. This is exactly the model South Africa needs to replicate, especially around the TASEZ hub in Tshwane.” The TASEZ team has committed to a series of post-tour engagements, including exploring partnerships with key players in the automotive sector. “We cannot let momentum fade,” added Dr Zulu. “Each conversation we had must be turned into a formal business case, each handshake into a partnership proposal. The goal is simple – make TASEZ the African home for clean automotive innovation.” This is no longer just about TASEZ. “It’s about how South Africa positions itself in the race for the green economy. The Chinese have moved – fast. Now it’s our turn to catch up.”