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Tshwane Automotive Special Economic Zone, South Africa

19th March 2021

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Tshwane Automotive Special Economic Zone (TASEZ).

Location
The SEZ will be located adjacent to the Ford Motor Company of Southern Africa (FMCSA) plant, in Silverton, Tshwane, in Gauteng, South Africa.

Project Owner/s
The SEZ is a public–private partnership between the Department of Trade, Industry and Competition, the Gauteng provincial government and the City of Tshwane, in partnership with original-equipment manufacturer FMCSA.

The Coega Development Corporation (CDC), developer and operator of the Coega SEZ, in the Eastern Cape, has been appointed as the implementing agent to develop and operate the TASEZ.

Project Description
The TASEZ is an automotive components supplier industrial park that will play a significant role in bolstering further investment and job creation in the local economy. It will also be instrumental in allowing for the future expansion of Ford’s local operations, in which it plans to invest more than $1-billion.

The SEZ aims to attract automotive components manufacturing companies and related services.

The project will be rolled out in a phased manner on 162 ha provided by the City of Tshwane.

The 81 ha first phase will accommodate nine suppliers.

Potential Job Creation
According to government news agency SAnews.gov.za, about 8 600 short-term jobs are expected to be created during the construction phase.

In a speech delivered in February 2021, South African President Cyril Ramaphosa stated that “out of the 34 targeted work packages, 22 successful small, medium-sized and microenterprises work packages have been delivered . . . totalling over R170-million”.

Capital Expenditure
The project is a R3.4-billion investment between government and FMCSA.

Planned Start/End Date
The project was launched by Ramaphosa in November 2019. Construction started in August 2020, within the limits of government’s Covid-19 regulations. The SEZ is scheduled to be completed in June 2021.

Latest Developments
The City of Tshwane and the Gauteng Department of Economic Development have committed R288-million and R200-million respectively towards allowing for bulk infrastructure development for this project. 

The FMCSA has helped with the attraction of 12 automotive component suppliers to the value of R4.33-billion.

Key Contracts and Suppliers
Moago Construction (short-term contract – bulk earthworks).

Contact Details for Project Information
FMCSA GM communications Minesh Bhagaloo, tel +27 12 842 2691 or email mbhagalo@ford.com.

Edited by Creamer Media Reporter

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