At a Glance
- South Africa breaks ground on the $1.5 billion Southern Farms Mega City to boost housing, jobs, and investment in Johannesburg’s south.
- The 4,000-hectare development will feature 43,000 homes, schools, hospitals, and transport links, aiming to revive a struggling metropolis.
- Officials and investors see the project as a model for inclusive urban renewal amid mounting infrastructure challenges in Gauteng.
South Africa has broken ground on one of its most ambitious urban renewal projects — the Southern Farms Mega City, a $1.5 billion (R27 billion) development aimed at breathing new life into Johannesburg’s struggling southern districts.
The project, launched in May 2025 at the Bushkoppies Site Camp, represents a major step toward addressing the city’s deep-rooted infrastructure and housing challenges.
For decades, Johannesburg — once the economic heartbeat of South Africa — has grappled with crumbling public services, deepening inequality, and a widening housing deficit as its population continues to swell.
Officials hope the development will mark a turning point for the city, long burdened by service delivery failures and growing urban decay.
“Southern Farms is more than housing — it’s a full-scale urban ecosystem,” said property broker Ash Müller, confirming the start of construction.
“It’s about building communities where people can live, work, and thrive.”
Building homes, jobs, and opportunity
Spread across 4,000 hectares, the Southern Farms project will feature 43,000 new homes, along with schools, healthcare facilities, libraries, and public transport networks.
Beyond easing housing shortages, the development aims to spur job creation, attract private investment, and provide the infrastructure needed to support small businesses.
The initiative is being spearheaded by Sephahaphaha Trading and Projects, expanding on the Southern Farms Biodiversity Development Project launched in 2023 to manage environmental impacts.
Developer Sedima Moseamedi said the new megacity is designed to balance growth with sustainability. “Our goal is to strengthen the local economy while preserving biodiversity,” he said.
The $1.5 billion development will consist of seven integrated precincts, combining residential, commercial, and light industrial zones.
Surrounding neighborhoods — including Diepkloof, Freedom Park, Eldorado Park, and Naturena — are expected to benefit from new roads, schools, and employment opportunities created during and after construction.
According to Müller, Johannesburg’s housing shortage stands at nearly 1.3 million homes, a deficit that could take decades to close without large-scale intervention.
City planners estimate that construction will take around ten years, making Southern Farms one of the largest mixed-use projects ever undertaken in Gauteng Province.
A blueprint for urban renewal
Southern Farms forms part of a broader Gauteng Megacity Initiative, which includes other projects in Cullinan, Daggafontein, Goudrand, John Dube, and Stinkwater.
Each is designed as a self-contained urban hub with access to major transport corridors and employment zones — offering a model for sustainable, inclusive growth in South Africa’s economic heartland.
But the city’s renewal drive comes amid worsening infrastructure concerns.
Johannesburg recorded nearly 100,000 power outages in just nine months, including more than 5,000 major breakdowns at key substations.
Water losses from leaks, illegal connections, and outdated systems account for roughly 45% of total supply, underscoring the urgency of modernizing basic services.
In March, President Cyril Ramaphosa voiced frustration over the city’s deteriorating infrastructure ahead of major G20 meetings scheduled later this year.
Business leaders under the Business for South Africa (B4SA) coalition have since discussed ways to mobilize private capital to stabilize municipal systems and restore investor confidence, according to Bloomberg.
Political and economic stakes
Johannesburg, home to about five million residents, generates nearly 16% of South Africa’s GDP and houses the Johannesburg Stock Exchange (JSE) along with major firms such as Discovery and Standard Bank.
Yet city officials estimate it will take R221 billion ($12 billion) to repair essential infrastructure, from roads and power grids to water systems.
With local government elections approaching, the Democratic Alliance (DA), led by Helen Zille, is aiming to reclaim the city from the African National Congress (ANC)-led coalition.
Analysts say large-scale projects like Southern Farms could help rebuild public trust in the current administration — or serve as a political talking point if progress stalls.
For residents, the hope is more immediate: a chance to live in a city that works.
As bulldozers begin carving out the first roads and foundations at Bushkoppies, Johannesburg’s future may well depend on whether Southern Farms — and others like it — can turn ambitious blueprints into lasting change.
