New shopping mall, part of a R5 billion Mega Smart City, officially opens in South Africa
The first phase of a planned R5 billion mega smart city in Gauteng has officially opened, with a new shopping mall in Kagiso.
Leratong City Shopping Centre opened on 29 October 2026 as the first completed component of the broader Leratong Smart City Development.
The 42,000 sqm shopping centre has 89 retail tenants and is expected to support further residential and commercial development in the surrounding area.
Gauteng Premier Panyaza Lesufi described the development as a new post-apartheid city, and highlighted its potential to create economic opportunities for residents.
“A new City! A new Gauteng economic node! New opportunities for all! A better Gauteng,” Lesufi said.
The shopping centre is only the beginning of a considerably larger project that is expected to include thousands of homes, commercial facilities and a private hospital.
The Leratong Smart City Development is a partnership between the Gauteng Provincial Government, Mogale City Local Municipality, Trendville Investments and McCormick Property Development.
Valued at approximately R5 billion, the project forms part of Gauteng’s broader strategy to address its housing backlog by developing integrated urban areas rather than building isolated residential projects across existing urban centres.
The provincial government’s Mega City aims to create self-sufficient developments along major transport corridors, combining housing with commercial and industrial activity, as well as essential services.
Mogale City said the proposed components of Leratong form part of a longer-term vision to establish a mixed-use urban node that brings residential, commercial and essential services together in one area.
The development is expected to include approximately 15,000 housing units, a commercial precinct and a private hospital, alongside the newly opened shopping centre.
However, municipal planning documents have provided slightly different estimates of the eventual housing capacity.
The municipality’s Integrated Development Plan for 2021/22 to 2025/26 initially outlined a first phase that would deliver 1,900 housing units, followed by a second phase comprising 13,000 housing units and additional commercial facilities.
Major tenants
Its draft Integrated Development Plan for 2026/27 presents a revised picture, indicating that Leratong Smart City has the potential to accommodate 16,000 housing units.
“Phase 1 would accommodate about 5,000 units, and a regional shopping centre is already under construction,” the municipality said.
Despite being marketed as a smart city, there is limited publicly available detail about the technological infrastructure planned for Leratong.
The municipality’s planning documents outline the residential and commercial ambitions of the development but provide little information about the information and communications technology infrastructure.
The project is also expected to make a contribution to employment in the West Rand.
According to the development plans, the construction of the shopping centre created 1,096 jobs, while the completed smart city is expected to support approximately 2,500 permanent jobs.
These longer-term employment figures will depend on the successful implementation of the subsequent development phases.
The opening of the shopping centre represents an important milestone, but the delivery of the wider project will depend on whether the remaining residential, healthcare and commercial components materialise.
McCormick Property Development, which developed the shopping centre, has experience building retail centres in previously underserved communities.
The family-owned company has developed 88 retail properties across South Africa, with four currently under construction and another 11 in its development pipeline.
Its developments include Alex Mall in Alexandra, Acornhoek Megacity in Bushbuckridge and Kwagga Mall in Mpumalanga.
Leratong City Shopping Centre’s tenants include Pick n Pay, Boxer, Shoprite, Clicks, Sportscene, Mr Price, Panarottis, McDonald’s, KFC, and Milky Lane, among others.
Mogale City Mayor Lucky Sele has also linked the development to broader ambitions to attract investment and revitalise the municipality’s commercial areas.
“My ambition is to see a single crane multiply across our CBD. I want to see more cranes rising above our city centre,” Sele said.
“I want to see old buildings renovated, underutilised properties redeveloped and new commercial spaces taking shape.”
Leratong City Shopping Centre
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