Tshwane Automotive SEZ- a catalyst to Gauteng’s economic reconstruction and recovery- 18 February 2022

Office of the Premier 2022/02/17 - 22:00



Gauteng News 

The Gauteng Provincial Government, in an effort to reposition itself in the world economy, established Special Economic Zones (SEZs), premised on the full potential of all citizens and regions.

Described as a game-changer to stimulate investments and to promote industrial agglomeration, the SEZs act as a tool to help build the required industrial infrastructure. They also promote coordinated planning between government and the private sector, making them an anchor of Gauteng's industrialisation agenda.

The goal is to have at least one SEZ in each district or metro, specializing in distinct sectors and industries in each corridor, says Premier David Makhura.

My Gauteng examines the progress at the Tshwane Auto Special Economic Zone (TASEZ) in Silverton, Tshwane which has been dubbed as Africa's First Automotive City and how its growth is benefiting the small, medium and micro enterprises (SMMEs)

Launched by President Cyril Ramaphosa in 2019, the TASEZ project, which in total will cover 204 hectares of land. Automotive manufacturers and suppliers will be instrumental in developing various vehicle components and services for Ford Motor Company.

With construction having started in August 2020 within the limits of the COVID-19 regulations, the planning, design and construction work has to date delivered significant jobs, training and development to both the communities and SMMEs in the region. 

The three spheres of government are investing R3.3 billion in infrastructure in this economic zone.

This has unlocked R4.3 billion investment by suppliers and a further R15.8 billion investment announced by Ford Motor Company in 2021. This makes it the biggest foreign direct investment since the 2010 World Cup.

Some of the component manufacturers, five in total, have already occupied facilities and their manufacturing operations have already begun even though it is at a small scale. This is expected to produce over 200 000 vehicles by 2022.

With a mandate to create employment opportunities and promote economic participation for SMMEs, the TASEZ is providing non-financial and financial support to 262 Grades 1-7 SMMEs and over 20,000 jobs will be created for the City of Tshwane residents over a period of time.

The TASEZ has identified 220 SMME packages to be allocated to local SMMEs. These packages are to be allocated to realise the initial target of 45% SMME participation from the township to the value of R844 million. To date, 78 SMME packages have been completed, to the value of R284. 6 million have been awarded.

Thus far, 10 women owned SMMEs have been appointed to the value of R22.2 million.

A total of 12 youth owned SMME's have been appointed to the value of R18. 5 million and 1 SMME owned by persons with disabilities has been appointed to the value of R362 000.

The total of construction jobs stands at 997, with 558 of these opportunities allocated to the local community.

Young people are empowered with various training and development programs including work-readiness training, health and safety awareness training and technical skills training.

The TASEZ has Graduate Development Programmes to assist built environment graduates to obtain meaningful practical workplace experience.

The automotive hub has been developed through a joint partnership between the City of Tshwane, Gauteng Provincial Government and the Department of Trade, Industry and Competition (the dtic).

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