Hong Kong-listed Shanghai Zendai Property started construction this week on the R84 billion "smart city" in Modderfontein, Gauteng.
The project was announced in April last year, and is set to be developed over the next 15 to 20 years, on 1 600 hectares of land - about the same size as the Sandton business district. The Modderfontein land was sold by explosives manufacturer AECI in 2013, for R1.6 billion, after 117 years of ownership.
On completion, it will be a smart city, home to 30 000 families and various industries, and is set to create 200 000 jobs.
According to initial reports from the company, the Modderfontein area will be built into a new city centre in Johannesburg, which will include nine functional zones: namely, the central business district; international conference and exhibition centre; entertainment centre; silver industry and retirement community; international residential community; comprehensive education district; sports centre; trade and logistic park; and light industry park.
PCCW Global, the venture's strategic technology partner, will provide Zendai with a range of services, including systems development and solutions integration, application development and management, telecommunications and IT services, cloud computing services and e-commerce solutions.
While the project could see millions pumped into the local economy, industry observers have previously expressed scepticism about its long-term benefit to the ICT sector.
Chinese companies based in SA have come under fire for bringing in foreign nationals to complete contracts, instead of transferring skills to local workers. The Congress of South African Trade Unions has said local workers should be employed, and charged that Chinese companies are exploiting Chinese workers by paying them a lower wage.
Share