New R350 million shopping mall breaks ground in South Africa

Construction of the Gcuwa Mall in Butterworth, Eastern Cape, has broken ground, with the new shopping centre joining the growing trend of rural retail developments.

Shenge Property Group and Luwie Properties partook in the sod-turning ceremony for the highly anticipated Gcuwa Mall development.

The mall will be located along the N2 in the Amathole District and is set to be a central economic hub catering to the greater Mnquma Municipality and beyond.

The development is valued at R352 million and will encompass a gross lettable area of 17,000 sqm. It plans to have a modern retail centre, a drive-thru, a new taxi rank and essential road infrastructure upgrades.

However, Shenge Property said that this represents only the first phase of development, which will expand to 25,000 sqm in the near future.

“Gcuwa Mall is not just a retail centre; it is a catalyst for growth, designed to unlock economic opportunities and uplift local businesses,” said Seabelo Theledi, Group CEO of Shenge Property.

“Our collaboration with Luwie Properties underscores our commitment to inclusive development, ensuring that the benefits extend to the broader Mnquma community.”

“We believe in developing infrastructure that serves the people and improves their daily
lives,” added Zolisa Magocoba, Director of Luwie Properties.

“The Gcuwa Mall will not only offer a state-of-the-art shopping experience but will also provide job opportunities and vital services to the surrounding communities.”

“This development is a step forward in addressing the socio-economic challenges in the region.”

The mall’s construction is expected to create roughly 1,500 jobs, with 80% of these arising during the initial construction phase. Recruiting workers from the local community will also be prioritised.

The completed mall is also expected to generate long-term employment opportunities within the retail, property management, and maintenance sectors.

The development also hopes to improve the following critical infrastructure in the Mnquma Municipality:

• Upgrading bulk services, including water, sewer, and electricity, to enhance the area’s capacity for future growth.
• Construction of a new taxi rank, providing formalised facilities for commuters and taxi operators.
• Relocation of the existing church to a modernised facility.
• Road network improvements for residents and businesses, including enhancements to the main intersection and a newly built road parallel to the N2 highway.

Shenge Property added that the mall will also improve access to essential services and lifestyle offerings for residents in Mnquma Municipality and surrounding towns such as Idutywa, Kentani, and Cofimvaba.

The development also hopes to address several key socio-economic challenges through the following:

• Improved access to retail, financial, and lifestyle services, reducing travel costs for residents.
• A structured and safe environment for informal traders to operate within the new taxi rank.
• Enhanced economic activity, attracting regional and national retailers to the area.

Part of a new trend

Shenge Property Group and Luwie Properties said the investment aligns with their aim of fostering economic resilience and sustainable urban development in South Africa’s rural towns.

The new mall will also be part of a new retail development trend in South Africa, where more malls are being built in rural areas.

South Africa’s urban areas, particularly those in Gauteng, are often noted for their oversupply of retail shopping centres, given the strain facing consumers and the high unemployment rate.

With this in mind, many developers are turning to retail developments in underserved rural communities.

Several new developments have recently launched in South Africa, with developers targeting Limpopo and KwaZulu-Natal.

This includes the 9,200 sqm Madombidzha Mall in Louis Trichardt, Limpopo, which opened in September 2024.

McCormick Property Development previously told BusinessTech that there are few formal retail options in the area and that Madombidzha Mall would allow for easy access to services.

McCormick was also involved in the Mehlareng Mall in Limpopo, which opened in November 2024.

The mall serves the communities of Mehlareng, Mahlako and the surrounding Zebediela areas and is home to a selection of affordable fashion retailers, including Mr Price and Pepkor.

The Princess Mkabayi Mall in Vryheid, KwaZulu-Natal, also opened for trading in November, with the development owned by the Moolman Group, Twin City, JB Holdings, and Green Giraffe.

The 30,000 sqm shopping centre, named after a powerful figure in Zulu history, is home to Shoprite, Checkers, Woolworths, Clicks, and more.