New R10 billion megacity coming to South Africa
The Minister of Human Settlements, Thembisile Simelane, says that construction on the long-delayed Daggafontein Mega City project is currently underway.
Simelane highlighted that substantial progress has been made across various workstreams to enable the bulk infrastructure required to support future human settlements.
“The project is currently approximately 90% complete in respect of bulk waterline, roads and stormwater infrastructure works despite operational delays caused primarily by adverse weather conditions,” she said.
The minister added that significant progress has been made on the bulk waterline component.
This includes the construction of 13 pipeline chambers, major excavation, and the installation of the bulk pipeline.
According to Simelane, there has also been effective coordination with existing municipal infrastructure and collaboration with Rand Water for tie-in connections and testing.
However, she said that several tasks remain outstanding.
These tasks include completing bridge stabilisation works at the Butler Road/Stanley Road crossing, constructing the remaining two chambers and five scour chambers, and finalising one tie-in chamber with Rand Water.
Additionally, approximately 1,020 meters of bulk pipeline still needs to be installed, along with the testing and commissioning of the completed infrastructure.
The minister shared the update on the project through a written parliamentary Q&A.
The Daggafontein Mega City project was launched in 2018 by Deputy President Paul Mashatile, with the development spanning approximately 750 hectares and divided into three main sections.
The project was first announced in 2016, and in 2017, Rodash 117 purchased the land for R170 million and entered into development agreements with the Gauteng Department of Human Settlements.
Rodash 117 was appointed as the turnkey developer, while the City of Ekurhuleni was responsible for providing bulk services.
It was envisioned as a flagship solution to Ekurhuleni’s housing backlog and the growing issue of homelessness, with an original target completion date of March 2023, which has long passed.
The City of Ekurhuleni noted in 2021 that the development is estimated to cost about R10 billion.
At the time, it said that the anticipated construction period for the development was five years, with social amenities (schools, hospitals, police stations, malls, etc.) expected to be completed over a 10-year period.
Delays in appointing service providers
This initiative was one of 15 mega projects identified by the Gauteng Department of Human Settlements (GDHuS) to provide up to 18,000 homes.
The housing options would include RDP units, social housing, affordable rentals, and bonded properties for middle-income earners.
In addition to housing, the plan promised the development of a self-contained community that would feature schools, clinics, shops, sports facilities, and even space for urban farming.
The government promised 7,500 temporary jobs during the five-year construction phase and 3,500 permanent jobs afterwards.
In April 2025, BusinessTech visited the Daggafontein Mega City project, which was more than two years behind its originally planned completion date, with no houses yet constructed.
Zweli Dlamini, a spokesperson for the City of Ekurhuleni (CoE), told BusinessTech at the time that delays were due to the appointment of service providers.
Multiple reports have also mentioned problems related to contractors and community disagreements.
Dlamini previously told GroundUp that the city was in the process of appointing a new contractor, as the contract with TCT Civils and Construction expired in December 2022.
“CoE has appointed a service provider to finalise the water bulk line, which could not be finalised due to insufficient funds in the last financial year,” Dlamini told BusinessTech.
Simelane, however, estimates that despite all the delays, the remaining infrastructure will be completed by the end of 2026.
“The city anticipates that the remaining bulk infrastructure works will be completed within the next six months, subject to favourable weather conditions and operational coordination with stakeholders,” she said.
Simelane said that the city is confident the project is progressing satisfactorily toward completion, despite delays caused by adverse weather conditions and challenges in operational coordination.
Photos of the Daggafontein Mega City project from October 2025
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