By Mandla Mpangase
South Africa’s Special Economic Zone (SEZ) programme has received a significant vote of confidence from the World Bank, with a new study concluding that the country possesses the infrastructure, legal framework and institutional capacity required to build one of the world’s leading SEZ programmes.
The findings have been welcomed by the Minister of Trade, Industry and Competition, Parks Tau, who said the report affirms the government’s long-term industrialisation strategy and provides a roadmap for strengthening the country’s network of Special Economic Zones.
The World Bank study found that South Africa’s SEZ programme has a solid policy and governance foundation but identified opportunities to improve coordination, increase investment attraction, deepen supplier development and strengthen monitoring and evaluation systems. It also recommended greater collaboration between national, provincial and municipal governments to maximise the economic impact of the zones.
Speaking after receiving the report, Tau said the government was encouraged by the findings, noting that South Africa had laid the foundations for a globally competitive SEZ ecosystem.
“The study has found that South Africa has the infrastructure, legal framework and institutional capacity to build a leading Special Economic Zone programme,” Tau said, adding that the recommendations would assist the government in refining policy and improving implementation.
The minister described the country’s SEZ programme as one of the government’s most important industrial policy tools for attracting investment, expanding manufacturing capacity, creating employment and increasing exports. He said the World Bank’s recommendations align with the government’s broader objective of accelerating industrialisation and building regional value chains.
TASEZ illustrates the model in practice
Among South Africa’s SEZs, the Tshwane Automotive Special Economic Zone (TASEZ) has become one of the clearest examples of what the World Bank’s findings seek to encourage.
Established adjacent to Ford South Africa’s Silverton Assembly Plant in Pretoria, TASEZ has evolved into one of the country’s largest automotive manufacturing hubs and has become central to South Africa’s automotive export strategy.
The zone has already demonstrated the economic impact that well-planned industrial infrastructure can deliver.
Phase One of TASEZ contributed approximately 1% to South Africa’s GDP during its construction phase, while creating more than 6 000 construction jobs. Since becoming operational, the zone has generated more than 3 400 permanent direct jobs, with thousands more supported across supplier industries and logistics value chains.
The development has also channelled more than R1.7-billion in procurement opportunities to South African small businesses while helping local manufacturers integrate into global automotive supply chains.
TASEZ is home to numerous component manufacturers supplying Ford’s expanded production programme and is expected to play an even larger role as South Africa transitions towards new energy vehicles and higher levels of local component manufacturing under the South African Automotive Masterplan 2035.
Its dedicated Training Academy, developed in partnership with technical colleges and universities, is also addressing one of the challenges identified in the World Bank study—building the skilled workforce required to support advanced manufacturing and industrial growth.
Industrial policy delivering measurable results
The World Bank’s findings arrive as South Africa’s SEZ programme continues to expand.
According to the Department of Trade, Industry and Competition, the country’s network of Special Economic Zones has attracted hundreds of operational investments worth more than R31-billion while supporting tens of thousands of jobs across manufacturing, logistics, agro-processing and technology industries.
For South Africa, the report reinforces the importance of maintaining industrial infrastructure capable of competing internationally for investment while supporting domestic manufacturing capabilities.
For TASEZ, the findings provide further evidence that the zone represents more than a successful automotive project – it has become a practical demonstration of how modern Special Economic Zones can drive industrialisation, attract global manufacturers, strengthen local supply chains and contribute meaningfully to national economic growth.
As the government considers the World Bank’s recommendations, TASEZ is likely to remain one of the benchmark projects that inform the next phase of South Africa’s industrial development strategy.