Major new shopping mall opens in South Africa

The new Mbhashe LG Mall has opened in Dutywa, Eastern Cape, joining the growing trend of rural retail in South Africa.

Opened yesterday, 27 March, Mbhashe LG Mall is a double-anchored 19,701 sqm development that provides grocery, banking, fashion and food options for a hungry retail area.

McCormick Property Development (MPD) said that the new mall is designed to enhance economic growth and accessibility in an area that has historically had very limited retail options available.

The new mall is anchored by Boxer and Shoprite, and features representation from the Clicks Group, Capitec, Absa, Nedbank, Standard Bank, the Mr Price Group, the Pepkor Group, TFG and Famous Brands.

The mall hosts over 60 stores, 85% of which are national, to cater to both essential and aspirational retail needs.

Two taxi associations will operate from the onsite rank, which consists of 40 taxi bays and dedicated taxi offices, to maximise commute convenience.

“Our commitment to fostering economic development, creating job opportunities, and delivering quality retail remains our driving force,” said Exemplar CEO Jason McCormick.

“Mbhashe LG Mall exceeds these objectives while looking amazing, doing it. The view of the Mall from the N2 will stop you in your tracks – iconic entrances with pops of colour draw shoppers inside where retail choice abounds.”

The property was designed by MDS Architecture, in association with Architects Unbound, and developed by McCormick Property Development (MPD) and Seven Days Trading Pty Ltd for Exemplar.

Work on the mall only began just over 12 months ago, and provided 700 jobs in development. The post-construction employment was expected to reach 1,200.

“Along with local employment, it was a priority for us to ensure skills transfer and upliftment throughout the project,” said Project Manager Ruan van Rensburg.

“Programs for local students included trades such as bricklaying, plumbing, plastering, and safety training.”

“The Mall will enhance retail convenience but also serve as a catalyst for further investment and development in the area.”

Growing trend

Mbhashe LG Mall is the third retail development funded by Exemplar, following KwaBhaca Mall and Bizana Walk, also in the Eastern Cape.

Exemplar owns a portfolio of 27 assets with a further six under management. It is a specialist asset manager and owner in the niche township and rural retail space.

“Developing within Exemplar again is exciting progress in the evolution of the company, as we continue to find ways to maximise shareholder growth and value,” said Jason McCormick.

The group will soon open the Leeuwfontein Crossing in Marble Hall in Limpopo in May. Shoprite will anchor the 8,000 sqm development.

With South Africa’s urban areas, especially Gauteng, having an oversupply of retail shopping centres, many developers are now turning to underserved rural communities.

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

This includes the 9,200 sqm Madombidzha Mall in Louis Trichardt, and the 30,000 sqm Princess Mkabayi Mall in Vryheid, KwaZulu-Natal.

Moreover, following a difficult few years, South Africa’s retail environment has shown signs of life at the start of 2025.

The Bureau for Economic Research’s (BER’s) latest Retail Survey showed a slight dip in confidence. The overall outlook for retail and motor trade also indicated

Although overall retailer confidence dropped slightly from 54% to 50% in Q1, it is still 10 percentage points above the overall average, and suggests that half of retailers are happy with business conditions.

This high level of sentiment follows positive retail sales data from Stats SA, which showed 5.4% year-on-year growth in Q4 2024.

The BER said that this strong performance was boosted by lower inflation, better consumer confidence and additional spending power due to two-pot withdrawals.

Images of Mbhashe LG Mall