Gauteng: The Northern Development Corridor
The Northern Development Corridor is anchored around the City of Tshwane as South Africa’s administrative capital city and the hub of the automotive sector, research and development, innovation as well as the knowledge-based economy.
The Corridor is home to a cluster of automotive and automotive supply companies, aerospace and defence concerns. Innovation and research and development are supported by strong links to the region’s outstanding tertiary institutions.
Together with the private sector, government is unlocking more than R60-billion worth of investments in key areas over the next decade. These include:
- Tshwane Automotive SEZ
- Consolidation and regeneration of existing areas: Pretoria CBD, Centurion and Silverton
- Infrastructure investment to revitalise townships and create economic opportunities
The Innovation Hub and its management company, TIHMC, are discussed elsewhere, as the unit works in all areas of the province, although its headquarters are in the Northern Corridor.
The Trade Investment and Regulatory Enablement unit (TIRE) is tasked with promoting and attracting trade and investments into the Gauteng City Region. In the 2023/24 financial year, R21.6-billion in foreign direct investment was facilitated with a further R30.7-billion domestic direct investment facilitated.
Of these totals, the Northern Corridor was responsible for 39% of the total invested, with the R20-billion achieved in domestic investment making up 67% of that component.
AIDC
The Automotive Industry Development Centre (AIDC) is a subsidiary of the Gauteng Growth and Development Agency (GGDA) which is an agency of the Gauteng Department of Economic Development.
The AIDC marked a significant milestone in 2024, as it celebrated the 20th anniversary of the Automotive Supplier Park (ASP) in Rosslyn. The event celebrated the AIDC’s contributions to the automotive sector and its role in driving economic growth in the broader northern economic corridor.
The ASP’s location creates synergies and cost-saving potential for investors due to its proximity to all major OEMs in Gauteng. The AIDC is dedicated to shape the future of automotive manufacturing through strategic investments and expansion plans for the ASP, with a focus on sustainability, efficiency and competitiveness.
The AIDC aims to further enhance the ASP as a prime location for automotive manufacturing.
The ASP’s location creates synergies and cost-saving potential for investors due to its proximity to all major OEMs in Gauteng.
The ASP spans 160 hectares (116ha owned by the AIDC and 44ha by the municipality). A total of 60 hectares is currently developed and houses 13 factories which are consistently at 98% occupancy. The AIDC has facilitated over 2 000 permanent indirect jobs through the companies housed in the Automotive Supplier Park, and 900 contractual jobs since its inception.
TASEZ
The Tshwane Automotive Special Economic Zone (TASEZ) is Africa’s first automotive city, an industrial hub that provides investors with a wide range of offerings to help their business flourish.
Based in Silverton in the capital city of Tshwane in Gauteng, TASEZ is situated near to a number of suburbs and townships, including Mamelodi and Eersterust, that provide access to highly skilled labour. This allows for increased economies of scale and scope, lowering the cost of doing business.
With the automotive city covering more than 200ha, there is room for expansion. A number of occupants are leaders in their sector, including automotive manufacturer Ford and original equipment manufacturer Feltex.
Automotive industry expansion into Africa
Businesses operating in the automotive industry who are looking to set up or expand operations into Africa, are encouraged to find out more about opportunities available in the TASEZ. Contact the team here:
Partners include all three tiers of government: the Department of Trade, Industry and Competition (dtic) provides financial support for investor-related infrastructure through its SEZ Fund, while the Gauteng Department of Economic Development and the City of Tshwane provide financial support and the resources necessary to manage and implement the SEZ.
Township development
Plans to upgrade and revitalise industrial parks at Ekandustria and Babelegi will serve to stimulate economic conditions in those areas. Similarly, the further implementation of the Gauteng Township Supplier Development programme will promote the growth of SMMEs in townships, particularly in the Northern Corridor with respect to serving the automotive and automotive supplies industry.
Township-based SMMEs in the automotive sector are supported with tailor-made skills programmes to increase their capacity to service clients and become profitable and efficient.
The type of skills provided is determined by a needs assessment at each township hub, which include technical training and mentorship programmes, financial skills and marketing, among others. On successful completion, attendees are awarded certificates of completion.
Township SMMEs are receiving training due to a partnership between the AIDC and GBNR Solutions to develop township SMMEs in various automotive programmes. The development of township SMMEs will improve market access or trade activities and increase their revenue to be self-sustainable.
GNBR Solutions is implementing a Small Enterprise Development Agency (SEDA) National Skills Training Programme targeting informal SMMEs in the automotive and related industries from township and rural areas.
The SEDA Business Start-Up training programme covers the following topics: Marketing the Business, Financing the Business, Managing the Business, Business Compliance (including assisting informal businesses with CIPC registration), Business Planning and presentation to potential financiers for funding. The course was presented over a five-day period.
A further AIDC programme trains and mentor SMMEs from the township hubs in gaining qualifications in quality vehicle repairs. The AIDC continues to monitor their self-sustainability through revenue generated in spray painting, body repairs, mechanical repair and panel beating.
The total turnover of the Township Automotive Hubs (both Winterveldt in the Northern Corridor and Chamdor in the Western Corridor) was just over R2-million for the FY 2023/24, exceeding the annual target by 19%. The annual target was exceeded due to an increase of more private vehicles being attracted to the hubs.
Skills
Within the Northern Corridor, a number of training programmes are active, for example the Gauteng Automotive Learning Centre and the Winterveldt Hub. In the 2023/24 financial year, 285 unemployed young people from local townships received training.
A Trade Test Centre (TTC) has been established within the ASP, where trade test assessments with accredited training are offered. That gap around the formalisation of skills within the automotive and allied industries is being addressed through the Artisan Recognition of Prior Learning assessment. The following are the AIDC TTC’s scope of accreditation: diesel mechanic, spray painter, boilermaker, mechanical fitter, fitting and turning, auto electrician, auto body repairer and welding.
A total of 285 unemployed youth were trained by the AIDC in FY 2023/24 against the annual target of 120. A further 1 440 individuals employed in the automotive sector were trained across all AIDC training centres against the annual target of 1 300. A total of 240 trade assessments were conducted at the Trade Test Centre against the annual target of 220.
Within the Ford and Nissan Incubation Centre, 13 incubated companies generated an amount of R124-million against a target of R55-million. The overachievement is due to some of the company’s employees working overtime and in multiple shifts to meet the requirements of the OEMs.
Contact
Companies, especially those operating in the automotive sector, that are interested to find out about availability and opportunities in the Northern Development Corridor and TASEZ, please send the team a brief message of introduction here:
For more information:
- Automotive Industry Development Centre: www.aidc.co.za
- Tshwane Automotive Special Economic Zone: www.tasez.co.za
