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Plans unveiled for South Africa’s new R30 billion mega city
Citigroup Inc. is partnering with South Africa’s Gauteng provincial administration to provide funding of nearly R1.4 billion for an ambitious mega-city project and airport in the southern region of Johannesburg. As reported by BusinessTech, the collaboration involves a seven-year loan facility from Citigroup’s South African unit to a particular purpose vehicle dedicated to investing in the infrastructure of the R30 billion Mega City development along the Vaal River. According to Peter Taylor, Head of Citi South Africa, the project is expected to attract significant additional investment.
In an interview, Taylor explained that the Vaal river city project would be a public-private partnership featuring a mixed-use metropolitan city, an international airport, and various logistics, manufacturing, and agriculture hubs. As South Africa’s wealthiest province, Gauteng has identified five strategic corridors for economic development and job creation, with the Mega River City being the inaugural venture. Spanning over 1,200 hectares of land, the Mega River City will be adjacent to an industrial hub housing major facilities of ArcelorMittal SA and Sasol Ltd.
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Initially unveiled in 2015 with an estimated R7 billion to R11 billion cost, the Vaal River City project aimed to become South Africa’s first post-apartheid city. The vision included extensive commercial office space, retail and leisure components, park areas, and residential units. While updates on the project have been limited, progress has been made on infrastructure, such as the Vaal River City Interchange construction in 2022.
During an imbizo in Sedibeng, President Cyril Ramaphosa highlighted the project as part of a special economic zone that would support new industries. He emphasised the importance of using the river as a main highlight of the city, drawing inspiration from other countries where cities are around water bodies. Ramaphosa praised the Gauteng government for its ambitious plan, aiming to create a thriving city on the banks of the Vaal River and establish a special economic zone to drive economic growth.
As the Mega River City project gains momentum, it promises to transform the region by attracting investments, stimulating job creation, and fostering the growth of new industries.
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