Mokonyane welcomes Chinese deal

Gauteng's Premier Nomvula Mokonyane is delighted by a Chinese deal to develop Modderfontein. Image: Gauteng Provincial Government.

"We are extremely excited by the news of this investment," she said. "We believe this is a definite sign that we are doing something right in Gauteng."

Chemicals group AECI announced it had sold 1,600 hectare property to Hong Kong-listed company Shanghai Zendai for about R1bn.

AECI would keep control of the Modderfontein Reserve, which was not part of the deal.

The Chinese firm had committed to investing about R80bn over the next 10 to 15 years to turn the area into a business and tourism hub. Mokonyane said the area was expected to include residential, commercial and retail developments, adding that it would create jobs and enhance economic activity.

"We are thankful that Shanghai Zendai chose to bring its business to Gauteng. I would like to assure the investors that we, as the Gauteng provincial government, will continue to work with them to ensure that their vision of building a major business and tourism hub becomes a reality."

Shanghai Zendai's chairman Dai Zhikang was quoted in the Business Report as saying the development would transform the property into a "New York of Africa".

"It will become the future capital for the whole of Africa," he reportedly said.

"This will be on par with cities like New York or Hong Kong," he added.

Source: Sapa via I-Net Bridge