Ramaphosa happy with Silverton automotive project progress
The Tshwane Automotive Special Economic Zone (SEZ) a R3,4 billion joint investment project by government and Ford motor company, will see about 8 600 employed during the construction phase.
President Cyril Ramaphosa paid a visit to the Ford assembly plant in Silverton to track progress being made on what he termed a “big ticket project”.
Known as the Tshwane automotive special economic zone (SEZ), the R3,4-billion joint investment project by government and Ford motor company, will see construction of motor factories adjacent to the Ford Silverton plant.
Among many benefits, this will make the plant the second largest Ford Ranger assembly plant in the world, after the US.
Ramaphosa said this project, launched in 2019, had created jobs in the area of Tshwane and has also boosted small, medium and micro enterprises in the metro.
“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,” he said.
“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.”
Despite Covid-19 challenges, Ramaphosa said he was happy to see some progress.
The development of the infrastructure would, over the next three years, see the creation of an expected 2 000 direct manufacturing jobs.
The total short-term jobs to be created during the construction phase was estimated at 8 600.
“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,” he said.
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“This will help to expand and transform the country’s manufacturing base, improve its export capacity, create employment and develop skills.”
Ramaphosa said special economic zones have proven to be an effective tool both to enhance productive capacity and crowd in private sector investment.
This included foreign direct investment, which often involved technology transfer from international companies.
Ramaphosa said the SEZ programme promoted an integrative and collaborative approach that strengthened partnership and coordination across all three spheres of government as well as between government and private sector.
The Tshwane metro and the Gauteng department of economic development committed R288-million and R200-million respectively towards the enabling bulk infrastructure development for the project.
“The three spheres of government are working together to accelerate the construction of 12 factories for these investments,” Ramaphosa said.
The Ford Motor Company has helped with attraction of 12 automotive component suppliers to the value of R4.33-billion.
Ramaphosa said US$1-billion investment announced by the Ford Motor Company of South Africa was a clear statement of the company’s confidence in this development and its ambitions for its South African business.
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