R4.3bn to fund automotive city
FIRST PHASE: 8 700 DIRECT JOBS WILL BE CREATED
Townships SMMEs also set to benefit from the special economic zone.
More than R4.3 billion is to be invested in the Tshwane Automotive Special Economic Zone (TASEZ) by 12 Ford suppliers and related services companies that have committed to establishing operations in the SEZ.
Ford’s executive director of government affairs for Africa, Dhiren Vanmali, said another 10 Ford suppliers and related services companies are showing keen interest in establishing operations in the SEZ.
“Accordingly, the team is already hard at work on the next phases of the project beyond the initial 81ha site,” he said.
Once completed, the TASEZ will span 204ha of land currently owned by the City of Tshwane.
National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal said on Tuesday he was aware of companies that have been investigating possible investments in the TASEZ but the final list of investors has not yet been released.
“We have been part of the initial discussion in scoping the zone and ensuring that it is suitable for the attraction of new and some existing suppliers to expand. So we are fully supportive of this and believe initiatives like this are crucial for achieving the objectives of the [automotive] masterplan,” he said.
Two major objectives of the sa Automotive Masterplan 20212035 are to increase vehicle production to 1.4 million vehicles a year by 2035, and to raise local content levels in SA-manufactured vehicles from an average of
40% to 60% by 2035.
The TASEZ was launched in November 2019 by President Cyril Ramaphosa, when it was announced that R3.5 billion will be invested by the government in developing the SEZ in Silverton, Pretoria, next to Ford’s production plant – and 6 700 direct jobs will be created in the first phase.
The number of estimated jobs created in the first phase has been amended since the launch, with a statement issued on Tuesday stating: “The TASEZ is estimated to create over 8 700 jobs during the construction of the first phase, with around 2 100 permanent jobs for operations.
“Thousands of additional jobs will be added as it evolves into a multi-faceted hub designed to bolster the manufacturing capacity and global competitiveness of the SA automotive industry, while contributing to job creation, skills development and the economic upliftment of local communities.”
The statement was issued following a visit to the TASEZ on Tuesday by Gauteng Premier David Makhura, Deputy Minister of Trade, Industry and Competition (dtic) Fikile Majola, City of Tshwane Administrator Mpho Nawa and dtic director-general and Tshwane Automotive SEZ chairperson Lionel October.
Makhura said it will be the first automotive city in Africa, and will be designed to include townships that are far from economic activities. “This is the first SEZ that will have 47% SMME [small, medium and micro enterprise] participation,” he said.
“These are real businesses and SMMEs from the townships that will add value in the construction of this project. We need to allow them to graduate into the broader industry, including manufacturing and operations.”
We believe initiatives like this are crucial