While the current construction phase continues to create immediate employment opportunities, the long-term economic impact of the Leratong Smart City is expected to extend far beyond the construction site.
Image: Mogale City Municipality
Phase 1 of the R5 billion Leratong Smart City Development is nearing completion, with the Leratong City Shopping Centre on track to open in October this year.
This means that the vision of centralised living is steadily taking shape, says the Mogale City Municipality.
Strategically located around Leratong Hospital, in Kagiso, west of Johannesburg, the broader development is expected to deliver approximately 15 000 mixed-income housing units, supported by retail, transport, education, healthcare and government service facilities.
Once complete, the integrated precinct will allow residents to live, work and access essential services within a single connected hub, significantly reducing travel times and improving quality of life, the municipality says.
But beyond the infrastructure rising from the ground, the project is already creating meaningful economic opportunities for local communities.
Since its inception, the project is said to have prioritised local economic participation, labour utilisation and the empowerment of local SMMEs within Mogale City.
To date, 40 local companies from various wards have been appointed across multiple scopes of work, including brickwork, plastering, paving and kerbs, electrical works, waterproofing, security, glazing, cleaning, fencing, and civil works linked to the substation.
Ward 9 is said to have recorded the highest participation with nine companies appointed, followed by Ward 5 with five companies and Ward 128 with four companies, reflecting broad community inclusion across the city.
The development has also emerged as an important source of employment and skills development, the municipality said.
“A total of 978 jobs were created during the construction phase, with 544 positions filled by local community members, resulting in 65% local labour participation. Several local contractors achieved full local employment representation, reinforcing the project’s commitment to community empowerment.
"In addition, 44 students have already benefited from workplace experience opportunities on the project, contributing towards skills transfer and youth development in construction-related fields.”
The development will also include a modern taxi rank facility, improving commuter connectivity to various destinations across the region. All taxi operators currently operating from Leratong Hospital will be accommodated within the new facility.
In addition to commuter infrastructure, the taxi rank will feature dedicated office space and a boardroom for taxi associations.
While the current construction phase continues to create immediate employment opportunities, the long-term economic impact of the Leratong Smart City is expected to extend far beyond the construction site.
Once operational, the development is anticipated to unlock sustained employment opportunities across retail, property management, logistics, hospitality, healthcare, security, maintenance, administration and other support services.
The completed precinct is also expected to stimulate further investment and economic activity within the broader West Rand region, the local municipality said.
According to the South African Smart Cities Framework published in 2021, South African cities and towns are increasingly pressured to become smarter. However, it says the lack of a common understanding of the concept makes it difficult for some to identify appropriate interventions.
Uncertainties regarding the benefits and pitfalls related to smart cities also hamper progress in implementing smart city initiatives. Furthermore, many misunderstandings regarding the interpretation of smart cities are appropriate to the South African context.
This South African Smart Cities Framework (SCF) was developed by the Department of Cooperative Governance (DCoG) to provide municipalities, national and provincial government, the private sector, civil society and other role players with impartial, factual information about smart cities in South Africa.
The SCF supports DCoG in its efforts to guide and coordinate smart city initiatives planned and implemented throughout the country.
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