The Gauteng Provincial Government has outlined plans to develop a handful of “mega” human settlements as part of an ambitious long-term housing development strategy aimed at narrowing the housing backlog, with plans afoot to replace informal settlements with sprawling multifunctional “cities”.

“We don't just want to build a few houses everywhere; we will build huge mega human settlements of between 15 000 and 20 000 [units] using consolidated housing grants from central government.

“We’re constantly working with the private sector to address the problem of affordable housing…and we want solar and gas energy to be [incorporated] into these developments. These cities won’t only be where people live, but will actually be an [entire] economy, with places of work and a transport network,” Gauteng Premier David Makhura told a media briefing on Friday following his reply to the debate on his State of the Province Address (SoPA) in the Gauteng legislature.

The Premier outlined in his SoPA on Monday, that, as part of the province’s overarching transformation, modernisation and reindustrialisation strategy, it would attempt to reconfigure the provincial economy and spatial patterns along five economic development corridors that connected a cluster of industries, economic nodes or economic hubs.

The province planned to spend R94-billion on infrastructure in the coming three years but would also be seeking to leverage the financial, technical and human capabilities of business through various public–private partnerships.

“The cumulative effect and combined impact of all the aforementioned public and private sector investments will be the creation of new cities and mega economic nodes that will change the economy and space of the central development corridor, which is anchored around the City of Johannesburg as the hub of finance, services, information communication technologies and pharmaceutical industries,” Makhura explained.

MEGA SETTLEMENT PROJECTS
Driving changes to human settlement patterns, the province was collaborating with the private sector and the City of Johannesburg on the Masingita City, Rietfontein, Waterfall City, Modderfontein City and Steyn City developments to “radically” change the spatial landscape of the central corridor.
 
The R3-billion Masingita City development, in the south of Soweto, was an integrated commercial and industrial hub that would create 15 500 jobs during the construction stage and some 10 000 jobs during its full operation.

It would also contribute to the township economy revitalisation by supporting township enterprises and small, medium-sized and microenterprises in Soweto, Lenasia and Randfontein.

The first phase of construction would start in March.

Meanwhile, the R20-billion Rietfontein was a complete mixed-use node with more than 8 000 proposed residential units, including commercial property, distribution and warehousing, retail and education facilities.

The development had the potential to create 17 000 jobs during the construction phase and beyond.

Meanwhile, the landmark R71-billion Waterfall City development, in Midrand, would create an estimated 100 000 jobs, while the nearby Modderfontein City project was expected to inject R84-billion into the economy of the Gauteng City Region (GCR) and create 150 000 jobs over the next 20 years. 

“Our partnership with the private sector and the City of Johannesburg has also resulted in a R6.5-billion injection into Steyn City development, including the construction of a new arterial road, the R511, and infrastructure for basic services.

“Phase 2 of the development will inject in excess of R50-billion into the economy of the GCR,” Makhura said on Monday.

PRIVATE SECTOR DEFENCE
Makhura, meanwhile, defended the province’s relationship with business, telling opposition MPs on Friday that the mobilisation of private sector resources and the alignment of private sector initiatives with public development plans was a key function of a capable developmental State called for by the National Development Plan.

“You can’t move the public sector forward without the private sector, [especially] when the private sector is willing to put resources into changing the spatial configuration of Gauteng.

“[We celebrate] our genuine partnership with the private sector because this is key for job creation and growth,” he noted.

Makhura added that the private sector remained the mainstay of fixed investment in the Gauteng economy, accounting for over 80% of gross fixed capital formation.