Property mogul brings smart city to rural area

Property mogul Mike Nkuna has set his sights on developing a smart city in a rural area in Limpopo. 

Nkuna, who launched R1.5bn integrated smart city in a village of Nkuzana in the Collins Chabane local municipality three weeks ago, is the head of Masingita Group.

Nkuna City is the fourth post-apartheid city to be mooted, after Lanseria Smart City, Mooikloof Mega City and Durban Aerotropolis. Apart from changing the property landscape, the smart cities are tipped to create jobs and improve local economy  which are mooted to create thousands of jobs and change property landscape in the country.

But unlike others, Nkuna City, according to the property tycoon, could be the first such new city driven by a black entrepreneur without major investors from outside.

Lanseria is being developed by SMEC South African, a multinational company with over 70 years experience in engineering and infrastructure development. While Balwin Properties, owned by Steven Brookes, is the sole developer of R17bn worth Mooikloof  City and Dube Tradeport, a KwaZulu-Natal government business entity is developing Durban Aerotropolis around King Shaka  International Airport.

Nkuna told Sowetan he was determined to create more cities, adding the democratic government has done little in building cities than changing names of the existing ones.

“If you check since the dawn of democracy we have not built our own cities; what we did is to change names of towns for political reasons though I’m not against it because politicians have got something to achieve. As we are changing names let's create our own history and build new cities so we can say this or that was created by black people for the coming generations to draw inspiration,” said Nkuna.

“Developing cities is something we have to do as black people and we must not wait for white people. We will be looking for people in agriculture, agro-processing and to formalise the motor mechanics and panelbeaters.”

Nkuna City which is already under construction on 119 hectares of land will comprise massive job amenities, including industries, shopping centres, value retail, residential, business site, hotel with conferences facility, intermodal facility, hospital, educational  and sports facilities.

The businessman said the city will create over 8,000 jobs during the construction phase and over 6,000 permanent jobs will be created during its full operation.

Nkuna, who already owns a list of shopping malls in Gauteng, Limpopo and North West, said: “A vision drove me to develop malls and cities because I felt black people cannot be only good for RDP houses. That was a challenge for me, and it made venture into properties.”

He said construction of his group's latest project, Masingita City, on 160 hectares land in Johannesburg would begin soon.

In his State of the Nation Address in February, President Cyril Ramaphosa announced that several new post-apartheid cities are being conceptualised across the country.

Balwin Properties spokesperson Morne Reinders said they were the sole developers of Mooikloof  City however it  would appoint 64% of local labour to sub-contract across their developments.

“A total of 2,100 jobs per annum will be created for the duration of the project and R17 billion is the total value of the project,” he said.

Last year,  Ramaphosa launched the Mooikloof Mega-City development which is set to be built in the east of Pretoria.

The Lanseria Smart City north of Johannesburg is expected to take 25 years to complete on 130ha of prime real estate between Lanseria International Airport and the upmarket Blair Atholl Golf Estate.

The Durban Aerotropolis is expected to turn the entire surface area around King Shaka International Airport into a smart city with diversified economic activities that will boost the province’s economy.

The city will cover 2,000 hectares of land as well as 10,000ha  of green space for expansion and the  development is also expected to create over 750,000 jobs.

Dube TradePort Cooperation spokesperson Vincent Zwane said to date the Dube TradePort Special Economic Zone (DTPSEZ) has completed the development of the first phases of its major development zones being, the light industrial Dube TradeZone and Dube AgriZone agro-processing precincts as well as the Dube Cargo Terminal which have driven this developmental momentum within the Aerotropolis.

“As of 2020, DTPSEZ has made significant progress with the development of the second phase of the Dube TradeZone precinct. Contractors are currently onsite installing bulk infrastructure (water, electricity and roads) within the new 38ha expansion of that development, while on the other hand, bulk earthworks (levelling land and making it suitable for development) have commenced, for an additional 30ha of the agricultural precincts both of which are designated as special economic zone,” Zwane said.

Zwane said the Durban Aerotropolis is a 60-year master-planned development.

“In 2021 we are 10 years into the development horizon, the ultimate goal is for the development to support 750 000 permanent jobs,” he said.

Nkuna said his development will take a period of  20-years to complete . 

“The Nkuna City will grow to be one of the best. I’m quite excited about the project. We started the construction in April and come May next year phase one, which is the shopping mall, will be complete.”

Nkuna said for his projects he prefers to hire individuals as bricklayers and other construction jobs than giving out subcontracting deals to few people.

The former herdsman said he drew inspiration in property market while visiting Gauteng when he was young.

“ I saw a building called the Carlton Centre [in Johannesburg CBC]. And those days Carlton Centre was the best area, and I asked myself how these people built such a huge structure,” he said.

“I’m a servant of the people and I wish politicians can emulate me. I grew up in a village I didn’t want to forget where I grew up. 

“I then said to myself one day I’m going to build my own. And fast forward to modern times, I have developed a high-rise building in the middle of Sandton,  Masingita Towers.”