South African President Cyril Ramaphosa will on Sunday, 04 October 2020, launch the Mooikloof Mega Residential City, a catalytic development project which promotes mixed-income social integration and corridor and transit node densification.
The development will complement the “help me buy a house” or Finance Linked Individual Subsidy (FLISP) programme initiated by the Department of Human Settlements.
The project was identified during the Presidential Sustainable Infrastructure Development Symposium (SIDS) process as one of the projects with the potential to address longstanding challenges in the Human Settlement sector. It was subsequently gazetted with 50 other projects in July.
The Mooikloof Mega Residential City project required support from government in the form of fast-tracked bulk infrastructure.
The SIDS process, driven by the Investment and Infrastructure Office in The Presidency headed by Dr Kgosientsho Ramokgopa, brought together critical role-players in the infrastructure investment space, who were galvanised around a key goal of accelerating an infrastructure-led economic recovery plan.
This housing project was included in the portfolio as it begins to address the challenge of providing affordable housing in high income areas.
This addresses the spatial and social inequality of the South African urban fabric.
Furthermore, the development will provide access to lifestyle services which have been previously inaccessible to individuals in lower income groups.
The City is situated in the eastern part of The City of Tshwane and covers an area of approximately 200 hectares with all approved Conditions of Establishment in place.
The total number of apartments is estimated to be approximately 50 000, with the first phase comprising of 15 000 family friendly units known as Mooikloof Manor.
The Development will consist of a mixture of Studios, 1, 2 and 3-bedroom apartments, in 18, 20- or 38-unit blocks.
The apartments will sell for between R495 000 and R799 000 (excl. VAT) each, focusing on the the GAP Market and government employees, such as police, health workers, civil and administrative staff and parastatal employees.
Infrastructure development has been identified as one of the main rescue vehicles to be used to resuscitate the economy and Mega City developments like the Mooikloof Mega Residential City are long term projects that are foreseen to have significant financial and employment impacts for the South Africa economy.
The City has significant social and economic benefits arising from the development activity as well as from the completed development.
The total development cost of the project is around R30 billion, foreseen to result in a total economic impact of R75 billion and will create an estimate 41 000 direct jobs.
Once the development has been completed, the value of the development is projected to be R33 billion.
The completed development is projected to generate R404, 9 million in taxes and 7 000 jobs per annum.