The Parliamentary Select Committee on Economic Development and Trade last month visited the Tshwane Automotive Special Economic Zone (TASEZ) to review it role in South Africa’s industrial strategy.

Officials highlighted TASEZ as a flagship project demonstrating how coordinated government support can drive investment, manufacturing and job creation. The committee positioned the zone as a model for the national SEZ programme, linking industrial policy, green manufacturing and inclusive growth.

Addressing the committee, Gauteng Economic Development MEC Vuyiswa Ramokgopa said: “TASEZ is not simply another industrial park. It is . . . a practical demonstration of how industrial policy can be translated into real economic opportunity.” 

Ramokgopa added that the success of the zone demonstrates the power of cooperative governance, with national, provincial and local government working together to create an industrial ecosystem capable of attracting investment, supporting manufacturing and creating jobs.

Since its inception, TASEZ has attracted an estimated R5.9-billion in private-sector investment, contributed an estimated R2-billion to the economy, and created 5 500 construction jobs and more than 3 400 permanent jobs, while supporting around 10 000 jobs across the broader automotive value chain.

The committee also received a broader overview of the national SEZ programme from TASEZ board chair Maoto Molefane.

South Africa currently has 12 designated SEZs spread across seven provinces, with nine operational and three still under development. Since 2016, the SEZ programme has generated more than 30 000 jobs and recorded total expenditure of R24.2-billion.

Molefane highlighted the role of SEZs in attracting investment into priority sectors, promoting localisation and strengthening South Africa’s participation in global value chains.

He said the zones are strategically located to leverage access to ports, airports, rail infrastructure and major transport corridors, while supporting balanced regional development and stronger integration with Southern African Development Community markets and the broader African continent.

The committee heard that Phase 1 of TASEZ is fully operational and that bulk infrastructure development for Phase 2 is already under way.

Construction has also begun on automotive company Ford’s new R300-million facility within the zone, further strengthening Tshwane’s position as South Africa’s automotive manufacturing hub.

Both Ramokgopa and Molefane emphasised the importance of preparing South Africa’s manufacturing sector for future industrial opportunities, including the transition to new-energy vehicle production, advanced manufacturing and green industrialisation.

Molefane outlined the government’s Spatial Industrial Development Strategy, which seeks to build globally and regionally competitive industrial clusters, promote beneficiation and value addition, support black industrialists, deepen local supply chains and integrate township and rural economies into industrial value chains.

The strategy also prioritises youth- and women-focused skills development programmes, learnerships and partnerships between to strengthen the country’s industrial capabilities.

While highlighting the achievements of the SEZ programme, Molefane also acknowledged ongoing challenges, including infrastructure constraints, unreliable electricity supply, logistics bottlenecks at ports and rail facilities, skills shortages in underdeveloped regions and delays in municipal service delivery.

He said key lessons learned from the implementation of SEZs include the importance of strong political support, national government involvement, reliable infrastructure, effective stakeholder management, long-term planning, sound governance and active private-sector participation.

The committee also received updates on major investments taking place across South Africa’s SEZ network, including a R110-billion green hydrogen project at the Coega SEZ, a R16-billion titanium dioxide plant in Richards Bay, a R1.3-billion automotive components facility at Dube TradePort, and major manufacturing, logistics and digital infrastructure investments in the East London, OR Tambo and Nkomazi SEZs.