Game-changing auto plant investment in Tshwane to provide wealth of economic opportunities

Ford’s Samcor assembly plant in Silverton is part of a special economic zone in the east of Tshwane and north of Gauteng.

Ford’s Samcor assembly plant in Silverton is part of a special economic zone in the east of Tshwane and north of Gauteng.

Published Sep 9, 2020

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This is one of five special economic zones planned for Gauteng

THE MULTIBILLION-rand Tshwane automotive special economic zone project in Silverton - described as a game-changer in a community that sorely needs jobs - is well on track, Premier David Makhura has said.

When completed, neighbouring township of Mamelodi will not be the same again, he said. “It is a game-changing investment directly in a community that needs development, economic advancement, economic inclusion and jobs,” he said during a visit to the site on Tuesday.

Makhura said the special economic zone, a Ford Motor Company investment, would be the first of its kind in Africa. It would integrate Mamelodi, a township, with an industrial area to build a new city.

President Cyril Ramaphosa officiated at a sod-turning ceremony at the site in November 2020.

It is anticipated that the industrial hub, being developed on 162 hectares of land, will attract automotive component manufacturing companies and create more than 20 000 jobs.

“Mamelodi will never be the same again,” Makhura said. The economic zone would involve close to 50% participation of SMMEs. The project would give opportunities for SMMEs to venture into the mainstream economy.

“We want to build an economy that includes everybody, that integrates township businesses that must be part of the mainstream. We are here to see if the project is taking off the ground. We were here in November and from then on it has been clear in my head that there is no turning back,” Makhura said.

He encouraged small business people to aspire to take part in the manufacturing of motor vehicles.

Makhura said implementing the project had faced many hurdles. These included threats by Ford to take the manufacturing project to Asia. The car maker believed at the time that South Africa was not serious about the project. This was because it was taking too much time to get off the ground.

The project was, however, saved after Makhura met the company representatives, the City of Tshwane, the Tshwane Economic Development Agency and the Department of Trade and Industry (dti).

The City committed to make land available and budget for bulk infrastructure.

“It is the first special economic zone where there are three spheres of government that are not only involved, but shareholders,” Makhura said.

The R3.4 billion project is expected to create more than 8 700 jobs during construction of the first phase and about 2 100 permanent jobs on its completion. Part of the work under way includes the installation of bulk infrastructure and clearing of the site.

Ford VP of Operations, Ockert Berry said the Covid-19 lockdown had unfortunately delayed the project by several months but the construction teams were on site from the beginning of August, with significant earthworks already completed over the past month.

The hub is expected to lead to many other business opportunities for component manufacturers in the areas of Silverton, Eersterust and Mamelodi.

When completed, 18 companies will operate from the industrial park; with nine having pledged to do so by January 2021.

The hub will also support the expansion of an incubation centre and contribute more broadly to the development of black industrialists.

Ford proposed that it establish the hub in South Africa to help expand its automotive footprint by attracting its global suppliers to the country.

During the State of the Province Address in February, Makhura said the automotive hub was part of a decade-long goal to unlock major corridors and economic nodes across the five development corridors with distinct industries in Gauteng.

https://www.iol.co.za/pretoria-news/ramaphosa-launches-tshwane-automotive-hub-at-ford-motor-company-in-silverton-36690070

They are:

Northern Development Corridor, anchored around Tshwane as the hub of the automotive sector, research, development, innovation and the knowledge-based economy;

Central Development Corridor, anchored around the City of Johannesburg as the hub of finance, services, ICT and pharmaceutical industries;

Eastern Development Corridor, anchored around the economy of the Ekurhuleni Metro as the hub of manufacturing, logistics and transport industries;

Western Corridor, which encompasses the economy of the West Rand district and the creation of new industries, economic nodes and cities; and

Southern Corridor, which encompasses the economy of the Sedibeng district and the creation of new industries, economic nodes and cities.

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