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 TASEZ will cover 204 ha and is driven by automotive manufacturing and suppliers of various vehicle components.
The project will be completed in phases. The first phase accommodates nine suppliers, with later phases to include residential and retail components.
Potential Job Creation
Of the total R1.85-billion spent to date, about R356-million has been spent on 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.
To date, 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.
Capital Expenditure
The project is a R3.4-billion investment between government and FMCSA.
Government, comprising the DTIC, the City of Tshwane and the Gauteng provincial government, has spent R1.85-billion on the TASEZ’s development to date, while R1.3-billion has been invested by the private sector.
Planned Start/End Date
The project was launched by Ramaphosa in November 2019.
The first phase of construction is expected to be completed in March 2022.
Latest Developments
Trade, Industry and Competition Deputy Minister Fikile Majola has said the TASEZ represents a turning point in how SEZs must be owned and operated, adding that Gauteng’s economic development is being led by these activities.
In the year to date the project has completed 75% of the Phase 1 top structure development and about 91 ha of development has taken place.
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 has said these plans must 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.
Key Contracts, Suppliers and Consultants
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.