From Creamer Media in Johannesburg, this is the Real Economy Report.
The first phase of the R1.5-billion Forest Hill City shopping mall, in Monavoni, in Centurion, was launched last month by property developers Billion Group, with the entire development set for a grand opening on July, 10. Sashnee Moodley was there.

Sashnee Moodley:
The Forest Hill City shopping mall development, located along the N14 and R55 highways, consists of 75 000 m2 of residential, restaurant and retail space and features 190 stores.

The project developer Billion Group founder and CEO Sisa Ngebulana says the development is the first of its kind for the region as it had previously lacked sufficient retail facilities, which resulted in a longer commute for local residents. He adds that the development is also a catalyst for a city precinct.

Billion Group founder and CEO Sisa Ngebulana:
The mall is a catalyst for something bigger here. Total development here is about R10-billion in value terms. So the mall collied about R1.6-billion in value terms. It is a catalyst for a city precinct. We did research and found that this area, we’ve owned for the last 12 years. It is strategic for us when we acquired it because we could see the growth coming this way.

This has taken over 15 months. The project began 1 March last year, so even though it is incomplete, there is a section on the entertainment side that still carries on, which is the next phase and is due to be completed in a month’s time. We will have a grand opening on 10 July that will be following the completion of these sections. It will have the biggest ice-rink, Olympic-sized ice rink and other activities within that. We will have a wave pool for teenagers to surf. This uses warm water, which relies on a reverse cycle with the ice rink. They work together to produce warm and cold water. So it doesn’t consume more electricity than it should.

Sashnee Moodley:
The Billion Group has spent more than R100-million on road infrastructure and has created job opportunities for residents in the surrounding area. More than a million shoppers are expected at the mall each month.

Sisa Ngebulana:
As we said we have 6 000 jobs during the construction phase we have 2 500 jobs permanently created just for this and then we have another potentially 10 000 jobs for the rest of the precinct, which is something for the community. As we expanded roads, we’ve expanded the R55 and Marais road that comes off the R55. That will kick of the entire area with street lighting, which is good for the area.

Sashnee Moodley:
The City of Tshwane mayor welcomed the investment and noted that the economic activity generated in the area will generate jobs and catalyse further development in the south-west of Pretoria.

City of Tshwane mayor Kgosientso Ramokgopa:
On the economic front we are able to generate multiple employment opportunities for people who were previously unemployed. So it is significant because it means they are able to increase consumption at a household level. It is also significant because it is adjoining a low-income development that is Olievenhoutbosch so I am sure the people of Olieven, a significant majority of the people who are employed here will serve as the catchment area will be from Olieven so that is the one side. On the economic side we are beginning to see the economic growth has got geographic traction. We need a development of this magnitude; of this size to the west of the city so that it can catalyse development along the R55 and the N14 corridor and this is what it does. We are likely going to see other industries following and other people seizing new opportunities that are associated with a development of this magnitude. So it’s significant on that front. It is also significant because invariably you needed to improve the road infrastructure around access connectivity and at the developers course, they’ve been able to do that. So suddenly you are not just using these roads to access these opportunities but for the purposes of mobility. So we are happy as a city that we are able to grow the city and take it forward.

Ithink it’s a sign of confidence of the private sector on the leadership of the city. Two, the city has been able to create an environment that enables easy investment by developers. One of the things we had to do was fight many legal battles that were trying to halt this development and way early on in those battles we were on the side of the developer because we understood the magnitude and the impact of the development on the city. It is also changing the city skyline and changing the city’s personality to the west so we are excited. I think there are greater things to come going forward.

Shannon de Ryhove:
Other news making headlines this week: Telkom gains traction in stabilising the group; and, Acsa’s new app ‘puts the airport in the pocket of passengers’.

Embattled telecommunications group Telkom has gained some traction in its attempt to return the group to sustainability and prepare itself for a “challenging future”.

Telkom group CEO Sipho Maseko

After indicating its intention to shift to a more customer-centric operating model, Airports Company South Africa recently unveiled Phase 1 of its pioneering free airport application (or app), which will enable passengers to easily navigate any of its nine airports and make or amend air travel arrangements using their smartphones.

Acsa customer care group manager Claudia Ramsden

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.