Inside SA's R84 billion smart city that never happened

Updated Jan. 23, 2025, 6:42 a.m. | By Breakfast with Martin Bester

The development of an R84 billion smart city in Modderfontein, east of Johannesburg, did not go as planned.

MODDERFONTEIN_SMART_CITY_1 — BusinessTech

Back in 2014, Chinese developer Zendai had grand plans to turn Modderfontein into Africa’s version of New York – a high-tech smart city with everything from a CBD to schools, churches, and even low-cost housing.

The vision was a bustling hub that would house 30,000 families, create 200,000 jobs, and be completed by 2030.

"It will become the future capital for the whole of Africa," said Zendai’s chief operating officer, Du Wendui, when unveiling the project.

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The project had all the buzzwords – smart technology, cutting-edge infrastructure, and global partnerships.

But things quickly unravelled.

Zendai lacked the funds to build the city and struggled to attract investors.

To make matters worse, Zendai’s chairman sold his shares in 2015, leaving the project in the hands of state-owned China Orient Asset Management Company, which had no interest in bankrolling such a massive venture.

By 2017, the land was sold to M&T Development, which took a more grounded approach. Today, Modderfontein isn’t the Manhattan of Africa, but it’s seeing steady development.

According to BusinessTech, a visit to the smart city revealed new roads, office parks, schools, and residential estates popping up – far from the original vision but still a growing, attractive area for families and businesses.

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While the dream of a futuristic smart city fizzled out, Modderfontein is quietly transforming into a modern, liveable suburb with plenty of potential.

As Wendui once noted, "Twenty years ago, nobody would have imagined that Sandton would look like it does today."

That same spirit seems to drive the new developers, who are quietly turning Modderfontein into an attractive area for families and businesses.

Here's what was envisioned: