10NORTHERN CORRIDORTHE
10NORTHERN CORRIDORTHE NORTHERN DEVELOPMENT CORRIDORThe Northern Development Corridor is anchored around the City of Tshwane asSouth 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 automotivesupply companies, aerospace and defence concerns. Innovationand research and development are supported by strong links to theregion’s outstanding tertiary institutions.Together with the private sector, government is unlocking morethan R60-billion worth of investments in key areas over the nextdecade. These include:• Tshwane Automotive SEZ• Consolidation and regeneration of existing areas: Pretoria CBD,Centurion and Silverton• Infrastructure investment to revitalise townships and createeconomic opportunitiesThe Innovation Hub and its management company, TIHMC, aredealt with in a separate section of this publication as the unit worksin all areas of the province, although its headquarters are in theNorthern Corridor.The Trade Investment and Regulatory Enablement unit (TIRE) is taskedwith promoting and attracting trade and investments into the GautengCity Region. In the 2023/24 financial year, R21.6-billion in foreigndirect investment was facilitated with a further R30.7-billion domesticdirect investment facilitated. Of these totals, the Northern Corridor wasresponsible for 39% of the total invested, with the R20-billion achieved indomestic investment making up 67% of that component.AIDCThe Automotive Industry Development Centre (AIDC) is a subsidiaryof the Gauteng Growth and Development Agency (GGDA) which isan agency of the Gauteng Department of Economic Development.The AIDC marked a significant milestone in 2024, as it celebrated the20th anniversary of the Automotive Supplier Park (ASP) in Rosslyn.The event celebrated the AIDC’s contributions to the automotivesector and its role in driving economic growth in the broader northerneconomic corridor.The ASP’s location creates synergies and cost-saving potential forinvestors due to its proximity to all major OEMs in Gauteng. The AIDCis dedicated to shape the future of automotive manufacturing throughstrategic investments and expansion plans for the ASP, with a focus onsustainability, efficiency and competitiveness. The AIDC aims to furtherenhance the ASP as a prime location for automotive manufacturing.The ASP spans 160 hectares (116ha owned by the AIDC and 44haby the municipality). A total of 60 hectares is currently developedand houses 13 factories which are consistently at 98% occupancy.The AIDC has facilitated over 2 000 permanent indirect jobs through
11Partners include all three tiers of government: the Departmentof Trade, Industry and Competition (dtic) provides financial supportfor investor-related infrastructure through its SEZ Fund, while theGauteng Department of Economic Development and the City ofTshwane provide financial support and the resources necessary tomanage and implement the SEZ.TOWNSHIP DEVELOPMENTPlans to upgrade and revitalise industrial parks at Ekandustriaand Babelegi will serve to stimulate economic conditions in thoseareas. Similarly, the further implementation of the Gauteng TownshipSupplier Development programme will promote the growth of SMMEsin townships, particularly in the Northern Corridor with respect toserving the automotive and automotive supplies industry.Township-based SMMEs in the automotive sector are supportedwith tailor-made skills programmes to increase their capacity toservice clients and become profitable and efficient. The type of skillsprovided is determined by a needs assessment at each townshiphub, which include technical training and mentorship programmes,financial skills and marketing, among others. On successfulcompletion, attendees are awarded certificates of completion.Township SMMEs are receiving training due to a partnershipbetween the AIDC and GBNR Solutions to develop townshipSMMEs in various automotive programmes. The development oftownship SMMEs will improve market access or trade activitiesthe companies housed in the Automotive Supplier Park, and 900contractual jobs since its inception.TASEZThe Tshwane Automotive Special Economic Zone (TASEZ) is Africa’sfirst automotive city, an industrial hub that provides investors with awide range of offerings to help their business flourish.Based in Silverton in the capital city of Tshwane in Gauteng, TASEZis situated near to a number of suburbs and townships, includingMamelodi and Eersterust, that provide access to highly skilled labour.This allows for increased economies of scale and scope, lowering thecost of doing business.With the automotive city covering more than 200ha, there is room forexpansion. A number of occupants are leaders in their sector, includingautomotive manufacturer Ford and original equipment manufacturer Feltex.
