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 (DTIC), 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
TASEZ chairperson Lionel October has said that he is satisfied with the progress made on the construction of the project. 

“Significant ground has been covered since . . . laying out . . . the bulk infrastructure, and the official commencement of the factory spaces.”

October has said that the completion of Phase 1 construction will result in investment of more than R4.33-billion from ten Tier 1 and Tier 2 component suppliers to the Ford Motor Company over the next 12 months. 

“Having these suppliers located adjacent to the Silverton assembly plant is crucial towards increasing the efficiency and competitiveness of the South African automotive sector, thus unleashing further potential increases in production capacity for domestic and export markets,” he noted.

DTIC spatial industrial development and economic transformation acting deputy director-general Maoto Molefane has indicated that with the construction of factories being at an advanced stage, government will now support the TASEZ to develop other industrial development support systems such as training facilities, incubation centres, retail facilities and an office park. These will be developed in line with market demand and the TASEZ Master Plan. 

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.