aBr Automotive Business Review July/August 2026 | Page 17

KZN ' s SEZ needs
The country ' s most populous province has two IDZs, one headquartered near King Shaka International Airport and the other in Richards Bay. But there is satellite SEZ development zoning, bordering Toyota ' s Prospecton production facility south of the port. The Toyota factory in Prospecton, south of Durban, is a production powerhouse of the South African automotive industry. As a primary technical buyer stimulating the downstream automotive supplier industry in KZN, policymakers need to consider Toyota South Africa ' s needs.
With the largest annual production capacity of any OEM in the country, investing in trade zone development near Toyota Prospecton makes a lot of sense. It also catalyses economic development on the KZN south coast, which has suffered from suppressed economic activity since Durban airport moved northwards to King Shaka.
The Tshwane scenario
In Gauteng, the dedicated automotive SEZ is located in the far east of Pretoria, adjacent to Silverton and next to the Ford South Africa assembly plant. The issue is that two of the three OEMs operating in Pretoria( BMW and Chery) have their automotive assembly plants in Rosslyn, in the extreme northwest of the capital city.
Ford Silverton is a global production hub for the Ranger bakkie. It features a specialised rail siding that would allow Ford South Africa to ship Rangers by rail directly from the assembly line, rather than by road transport.
The majority of Rangers built in Silverton are still moved by truck car carriers, rather than rail. It’ s an example of how uncoordinated South Africa ' s SEZ ambitions are. A telling example of how little policy influence SEZs have to compel state-owned enterprises to service their tenants properly.
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