Orania’s plan to create a bustling rural city
In the arid landscape of South Africa’s Karoo region in the Northern Cape lies Orania, an Afrikaner-only town that has carved out a unique development path.
Home to over 3,000 residents, the self-governed town is rapidly expanding, with its population growing by 10% to 15% annually.
Orania aims to reach 10,000 residents soon and become a fully-fledged ‘rural city’ along the Orange River.
The town functions as its own local government, a status achieved through a complex history involving a settlement with the state.
Orania’s unique municipal status stems partly from the fact that it independently delivered its own services for nine years before the formalisation of the new municipal system in South Africa in 2000.
“We’re in a special category, as the high court decided,” Orania’s communications officer Burger Lambrechts told BusinessTech.
“Therefore, we only use our own internal resources and make decisions about our own destiny, where we’re not affected from outside in that sense.”
This autonomy is a cornerstone of Orania’s approach to self-governance, which has helped it to become a self-sustaining community.
Orania was founded on the principles of “Afrikaner self-governance, cultural preservation, and self-determination”.
These principles are seen as controversial among some South Africans, considering the country’s history of racial segregation.
Critics argue that the town’s model of “cultural self-determination” is, in practice, an exclusionary system that mirrors historical segregation.
While anyone, regardless of race or culture, can visit the town, only approved Christian Afrikaners who support the town’s vision can take up residency.
Legal scholars have long debated whether the town’s residency policies violate anti-discrimination laws, as the town’s selection criteria raise concerns about exclusion based on ethnicity and identity.
However, Orania’s leaders strongly reject this notion, insisting the town is about Afrikaner culture, not race, and that its residency rules align with their constitutional right to cultural self-determination.
Amid this noise, the unique town is steadily rising, built not on the conventional pillars of state funding and external aid, but on self-reliance and private initiative.
“We do it all ourselves”
Orania’s residents and businesses contribute millions in taxes to the South African government annually. It includes personal income tax, value-added tax (VAT), and company taxes.
“Yet, Orania gets practically nothing in terms of services from the state,” said Tony Coreia, chairman of the Orania Chamber of Commerce.
“We have to roll up our sleeves and build our future ourselves,” said Joost Strydom, CEO of the Orania movement. “That’s what everything we do is about.”
A core tenet of Orania’s economic and social philosophy is the principle of “own labour,” which dictates that Afrikaners within the community undertake all work.
This includes everything from service delivery and maintenance to the construction of buildings and infrastructure.
Strydom said this principle is “a fundamental shift” from South Africa’s historical reliance on cheap black labour and is considered a reformative practice.
The commitment to “own labour” is driven by several factors, including the desire for self-sufficiency and the aim to maintain a demographic majority to ensure cultural and political autonomy.
The economic boom experienced by Orania can be largely attributed to the population increase and the subsequent rapid development of infrastructure.
Apart from the building of new housing seen in practically every street, a drive around town will show that larger-scale projects are plentiful.
From the construction sites of a town square to large student accommodation, a nursing home, and a new hospital, the town is buzzing with development.
It also has big dreams of boasting an Afrikaans university. “We want to be a fully blown city with a rural feel,” said Strydom.
Unlike other municipalities in South Africa that benefit from low-interest state loans, Orania operates without this financial support and consciously chooses to avoid dependence on the state.
This means the financial burden of maintaining existing infrastructure and funding future expansion for a growing population falls elsewhere.
“Everything that we do is privately funded. Every rand and Ora,” said Coreia, referring to the town’s own currency.
Apart from the abovementioned revenue sources, external institutions like Solidarity have historically made financial contributions.
Pieter Bisschoff, from the Orania Ontwikkelingsmaatskappy (OOM), a private infrastructure development entity within Orania, said that they “differ in a sense that we haven’t got an aim to make money. We are here to grow the city.”
Bisschoff explained that Orania’s financial stability and development are underpinned by a dual funding system: philanthropic contributions and strategic investments.
Individuals “who resonate with Orania’s vision” of cultural and language preservation and self-determination provide direct donations, offering financial support without expecting a direct monetary return.
Complementing these donations is a system of investment. “Individuals and entities who see value in Orania’s growth and stability invest with the expectation of generating income from their investment,” said Bisschoff.
“This model attracts individuals from within Orania and external investors who recognise the economic sense and relative safety of investing in the town’s development while also contributing to its expansion,” he added.
The company, OOM actively seeks out such investors, highlighting the potential for growth on their investment alongside the positive impact on the community.
Orania’s economy and services
All this information raises the question of what fuels Orania’s growth. The main pillars supporting Orania’s economy are trade, service delivery, construction, and tourism.
The “own labour” approach has resulted in low unemployment rates within Orania.
Strydom said that there are “opportunities available for anyone willing to work” if they are ultimately approved to live there.
As shown by the major infrastructure, the construction sector has been particularly active, with over 60 active construction sites. These construction companies are exclusively from within Orania.
Tourism also plays a vital role, while trade and service delivery encompass internal economic activity and external engagement.
Agriculture has also been a key sector. The development of water infrastructure has been essential in enabling farming activities, boosting the economy and creating job opportunities.
Major agricultural exports include wheat, maize, and pecan nuts, while local farming efforts also support the community’s sustenance.
Despite the emphasis on local production where feasible, Strydom said that Orania recognises the interdependence of economies and does not aim for complete self-sufficiency.
The town operates on similar principles of export and import as larger economies in a free-market system.
Orania’s future plans
Some argue that Orania’s approach could serve as a blueprint for local governance, demonstrating the benefits of self-reliance and limited state dependence.
However, detractors question the town’s long-term viability despite its rapid growth in recent years.
With strict residency requirements limiting the labour pool, some question whether the town can sustain its economic momentum without outside participation.
Additionally, its reliance on private funding and investment raises the issue of financial vulnerability. Should external donations and investor interest decline, Orania’s development could stall.
However, its leaders and residents told BusinessTech that they are aware of their unique financial situation and the need for careful management.
Yet, they say that appetite for the town continues to grow exponentially, and soon, it will be a bustling rural city.
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