In what was once hailed as an ambitious and groundbreaking project, the Modderfontein New City, a smart city initiative spearheaded by the Chinese development group Zendai Developments, has faced significant challenges, casting doubt on its future. Situated in Modderfontein, east of Johannesburg, the project was conceived as a massive $8 billion undertaking aimed at creating a futuristic city with cutting-edge infrastructure. The plan envisioned a city with nine functional zones, including a bustling CBD, residential, educational, and entertainment districts, as well as healthcare facilities, a sports center, and affordable housing.
Zendai had partnered with PCCW Global, a Hong Kong-based telecommunications company, to provide the city with advanced technology, including cloud computing, e-commerce solutions, and state-of-the-art telecommunications. The intention was to position the city as the New York of Africa, serving as a thriving commercial and technological hub. At its peak, the smart city was expected to house 30,000 families and create up to 200,000 jobs by 2030.
The original proposal, which was announced in 2014, offered an optimistic vision for a vibrant, connected city on a 1600-hectare plot of land previously used by AECI’s explosives factory. The development had the potential to revolutionize the area, especially after the introduction of the Gautrain, which passed through Modderfontein, connecting it to Johannesburg and Sandton. Zendai’s acquisition of the land for R1.06 billion marked the beginning of what was expected to be a transformative journey.
However, the project has faced a series of setbacks that have severely hindered progress. Despite the bold vision, Zendai and its chairman, Dai Zhikang, struggled to secure the necessary funding to build the city’s infrastructure. The company sought to attract investors, but interest was limited, and the project stalled.
In 2015, another significant development occurred when Dai announced the sale of his shares in Shanghai Zendai Property to the state-owned China Orient Asset Management Company (COAMC). As a result, COAMC became the controlling shareholder of Zendai and, by extension, the Modderfontein New City project. However, COAMC, lacking the appetite to continue funding such an expensive venture, made the decision to sell the land, further derailing the city’s prospects.
Though some development continues on the site, the scale of progress remains far from the original vision. The once-promising Modderfontein New City now faces an uncertain future as financial and logistical challenges continue to stymie its completion. The city that was once touted as a symbol of Africa’s future is now a reminder of how even the most ambitious projects can falter when faced with insurmountable obstacles.
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