Then Gauteng MEC for Human Settlements and Infrastructure development, Lebogang Maile speaks to media at the OR Tambo Memorial hospital near the scene of a massive explosion, 27 December that took place in Boksburg, 24 December 2022. Picture: Neil McCartney / The Citizen
The newly appointed Gauteng MEC for finance and economic development, Lebogang Maile, says his department will continue to support investment in the automotive sector after visiting the Tshwane Automotive Special Economic Zone (Tasez) in Pretoria yesterday.
The SEZ completed the first phase of its development during Covid by using a R24 billion investment to set up an automotive manufacturing zone that currently has 12 fully operational facilities and employs 3 500 people.
“Tasez operations are in full swing, with the completion of phase 1 and phase 1A of its development seeing the production of the first next-generation Ford Ranger getting into gear in November.
Economic Wrap: Manufacturing performs poorly, MPC set to meet
“This was the result of a capital investment of $1.05 billion (about R19 billion) by Ford Motor Company of South Africa (FMCSA) increasing its capacity from 160 000 to 200 000 vehicles annually and exporting vehicles to more than 100 global markets.
“Over and above the R19 billion investment by FMCSA, investment into Tasez by the 11 tenants/ Ford suppliers stands at R5.9 billion against an initial target of R3.4 billion,” he said.
Maile said the investment had created 3 244 permanent jobs within the zone with more than 65% of these jobs sourced from surrounding communities.
“Over the next two years, FMCSA is investing an additional R5.2 billion for the production of the first Ranger plug-in hybrid electric vehicle.
“Tasez, through the Inter-governmental Relations Agreement between the three spheres of government, has secured R392 million for internal bulks and R932 million initial top structure funding for the establishment of a Ford sub-assembly of after-market components and sequencing facility for national and international markets,” he said.
ALSO READ: 1.9 million people qualify for car financing but do not use it
Maile said these investments created jobs and strengthened the manufacturing capacity of Gauteng.
Motor Industry Staff Association CEO Martlé Keyter welcomed all investments in the automotive industry, saying they boosted production and ultimately vehicle sales.
Economist Dawie Roodt said without subsidies, the motor industry wouldn’t be able to stand on its own feet.
