The Department of Trade, Industry and Competition has, so far, contributed R2.5 billion towards the development of the Tshwane Automotive Special Economic Zone (TASEZ), and 70 percent of the construction was complete Trade, Industry and Competition deputy minister Fikile Majola said yesterday.
The money helped to unlock a R16bn investment by Ford Motor Company and a further R4.3bn from automotive components suppliers, which would occupy facilities within the 162.6 hectare SEZ, he said in a statement. SEZ’s are geographically designated areas that hold incentives to attract certain business sectors.
Majola described as “unprecedented in South Africa”, the speed with which the TASEZ was being built.
“We are informed by Ford that up to 6000 jobs have been created. This is great news,” Majola said. The TASEZ aims to create some 20 000 new jobs once it is fully invested and operational, according to its website.
The Tshwane Automotive SEZ is being driven by automotive manufacturing and supplier development chain of various vehicle components.
Majola said that 45 percent of the procurement spend at the SEZ so far had been on 662 small, medium and micro enterprises (SMMEs), and a further R25m went towards training and skills development of the SMME operators.
Five auto component manufacturers were occupying facilities, and their manufacturing operations had begun, even though it was still at a small scale.
He said the next stage of the project would be the development of a High Capacity Rail Corridor between Silverton and Gqeberha in the Eastern Cape.
“We will build rail lines working with Transnet and private sector partners to ensure that Ford and other manufacturers can transport their cars to reduce congestion at the Durban Port,” said Majola.
The TASEZ was launched in 2019 and is one of the ten approved Special Economic Zones spread in seven provinces.
BUSINESS REPORT