Trade, Industry and Competition Deputy Minister Fikile Majola this week said the Tshwane Automotive Special Economic Zone (TASEZ) represents a turning point in how special economic zones (SEZs) must be owned and operated, adding that Gauteng’s economic development was being led by these activities.

He spoke during a briefing during which the TASEZ provided an update on the zone’s development in the year-to-date, including having completed 75% of the Phase 1 top structure development.

In the year-to-date, government, comprising of the Department of Trade, Industry and Competition (DTIC), the City of Tshwane and the Gauteng provincial government, has spent R1.85-billion on the TASEZ’s development, while R1.3-billion has been invested by the private sector.

Of the total year-to-date spend, about R356-million has comprised procurement from small, medium-sized and microenterprises (SMME), with a further R639-million worth of contracts having been awarded and R25-million spent on training and skills development of SMME operators.

About 91 ha of development has taken place this year, and 3 042 jobs have been created across five factories within the TASEZ since its launch by President Cyril Ramaphosa in 2019, with more to come as construction is completed and existing operations ramp up.

Overall, the DTIC has contributed R2.5-billion towards the development of the TASEZ, which has helped to unlock a R16-billion investment by Ford Motor Company South Africa and a further R4.3-billion from automotive component suppliers that occupy facilities within the SEZ.

Ford in the last few months undertook extensive modernisation of its manufacturing facility, in preparation for assembling the next-generation Ranger vehicle in 2022.

When the next-generation Ranger is launched in 2022, the facility will have an annual installed capacity for 200 000 vehicles – which is nearly double the 110 000 units it was capable of when production of the current Ranger pickup began in 2011, and a significant increase from the 168 000 units prior to the latest R10-billion worth of investment into modernising the plant.

The TASEZ will cover a total 204 ha of land and is driven by automotive manufacturing and suppliers of various vehicle components. The first phase accommodates nine suppliers, with later phases to include residential and retail components.

The first phase of construction is expected to be completed in March next year.

Commenting on the TASEZ’s plans to work alongside Transnet in developing a rail-to-port corridor for vehicle and component exports, Gauteng Economic Development MEC Parks Tau said those plans had to be expedited or it could stifle production and exports.

The corridor will span from Silverton, in Tshwane, to Gqeberha, in the Eastern Cape, and is envisioned to be in place by 2025.

The Gauteng Department of Economic Development is providing business development support for the TASEZ, as well as the OR Tambo and Vaal SEZs. 

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

In conclusion, Majola lauded the TASEZ’s quick development speed despite hurdles that emerged during Covid-19 lockdowns over the last year.