Remarks by President Cyril Ramaphosa on the visit to the Tshwane Automotive Special Economic Zone

Programme Director,
Minister of Trade, Industry and Competition, Mr Ebrahim Patel,
Premier of Gauteng Mr David Makhura,
Executive Mayor of Tshwane, Cllr Randall Williams,
Vice President of Manufacturing Business Operations of the Ford Motor Company, Mr Andrea Cavallaro,
Managing Director of Ford Motor Company SA, Mr Neale Hill,
CEO of the Transnet Group, Ms Portia Derby,
Directors-General present,
Ladies and Gentlemen,
Good Morning, 

It gives me great pleasure to again visit the Tshwane Automotive SEZ and Ford Motor Company of South Africa.

I was last here in November 2019 to launch the infrastructure rollout for this SEZ.

It is great to see the progress that has been made since then despite the massive challenges posed by the COVID-19 pandemic.

This development presents a perfect opportunity to use our country’s comparative and competitive advantages to accelerate industrialisation.

These advantages include a well-developed automotive industry, with advanced manufacturing capabilities, an appropriately skilled workforce and access to growing markets.

We also have significant potential to develop a robust network of emerging suppliers.

This will help to expand and transform the country’s manufacturing base, improve its export capacity, create employment and develop skills.

Experience from countries such as Malaysia, China and Singapore, which have managed to place their economies on sustainable industrial paths, has demonstrated the potential of special economic zones.

In our own experience, special economic zones have proven to be an effective tool both to enhance our productive capacity and crowd in private sector investment.

This includes foreign direct investment, which often involves technology transfer from international companies. 

This enhances South Africa’s position within global and regional value chains.

Since its inception in 2014, the Special Economic Zones programme has managed to attract R18.6 billion worth of private investment from 136 operational companies. 

An additional 99 investment expressions of interest by companies, worth R48 billion, are currently being considered. We hope to get a large slice of this landed as viable projects, as we work with firms to turn ideas into commercial reality.

The SEZ programme is playing a very significant role in supporting the implementation of the country’s Economic Reconstruction and Recovery Plan, which was launched in October last year to respond to the economic impact of the pandemic.

The SEZ programme promotes an integrative and collaborative approach that strengthens partnership and coordination across all three spheres of government as well as between government and private sector. 

This new approach is proving its worth here in Gauteng through the establishment of the Tshwane Automotive SEZ. 

This SEZ has already made a significant contribution to the economy and job creation.

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. 

Out of the 34 targeted infrastructure work packages reserved for local SMMEs, 22 have been successfully executed with the value of R170 million. More will be rolled out as the SEZ commences with the construction of the top structures.

Through the development of this infrastructure, which is support by the Department of Trade, Industry and Competition to an estimated value of R3.15 billion over the next three years, will see the creation of an expected 2,000 direct manufacturing jobs. 

The total short-term jobs to be created during the construction phase is estimated at around 8,600 jobs. 

The collaboration between the three spheres of government, the DTIC, the province of Gauteng and the City of Tshwane, all working with the Ford Motor Company of South Africa, shows what can be achieved through the Development District Model, especially in delivering critical infrastructure and investment attraction. 

The City of Tshwane and the Gauteng Department of Economic Development have committed R288 million and R200 million respectively towards the enabling bulk infrastructure development for this project. 

The Ford Motor Company has helped with the attraction of 12 automotive component suppliers to the value of R4.33 billion.

The three spheres of government are working together to accelerate the construction of 12 factories for these investments.

The $1 billion investment announced today by the Ford Motor Company of South Africa is a clear statement of the company’s confidence in this development and its ambitions for its South African business.

It is testament to the collective efforts of government, business, labour and communities in building sustainable local economies.

I am told this is the largest investment the Ford Motor Company has made since its establishment in South Africa, and one of the largest investments in the South African automotive industry as a whole. 

This investment will make the Silverton Assembly Plant one of the biggest Ranger plants globally and one of the largest Ford truck plants outside the United States.

The establishment of the Tshwane Automotive SEZ opens up new opportunities to stimulate the development of a high capacity rail infrastructure corridor between Gauteng and the Eastern Cape to assist with transporting finished vehicles for export through Port Elizabeth. We are now working on this logistics plan. 

This corridor development is envisaged to include the deep-water port in Port Elizabeth, which will lead to job creation and stimulate more business opportunities in both provinces. 

The conclusion of the African Continental Free Trade Area agreement opens up new markets for products produced on the continent. 

This is an opportunity to drive our localisation plans to build and strengthen South African industry and to accompany them with regional value-chains. 

I am delighted that we are already working with Namibia, Botswana, eSwatini and Lesotho on cross-border production systems to enable the AfCFTA to provide jobs here in South Africa and among our neighbours, and indeed across the continent. 

Our Economic Reconstruction and Recovery Plan places great emphasis on investment and master plans. This investment will be a positive sign of the economic recovery. 

The delivery of the first batch of vaccines yesterday is an important moment for us – to begin to drive a mass vaccination rollout that can provide further protection to workers, consumers and citizens, boost confidence and help our efforts to repair the damage of he pandemic. 

This investment announcement is therefore timely. It truly sets the tone for what we are certain will be a positive year for South Africa’s investment drive. 

We express our sincere appreciation to the Ford Motor Company for its continued confidence in South Africa.

I also thank everyone who was instrumental in ensuring that today’s site visit and briefing session was a success.

I thank you.