With hopes of boosting economic growth and creating job opportunities, the Eastern Cape government is looking to generate millions in profits as it is set to lease more than 60 hectares worth of land, comprising 72 properties across the province.
These properties include vacant land parcels, commercial and coastal properties that carry the potential for various economic opportunities for property practitioners, developers and entrepreneurs.
The properties will be leased for a period of 30 years, with an option to renew for a further term, at the discretion of the department of public works.
The department will enter into the long-term lease with the successful bidders after a formal bidding process has been concluded. This is contained in two tender documents open since November and are set to close in February 2026.
Of the properties earmarked for development, there are five parcels of land in the coastal town of Hamburg in the Peddie district.
For many years, the small town has been earmarked for major development, with plans to build a small harbour currently under way.
This came to light during premier Oscar Mabuyane’s state of the province address in February.
At the time, Mabuyane said the plans for Hamburg’s harbour development were in line with the construction of a R1bn beef value chain complex consisting of a 10,000-cattle capacity feedlot on a 400-hectare farm in Wesley, a few kilometres from Hamburg.
However, similar plans in 2021, in the same area, hit a snag when land developments in the area were disputed by 33 local residents, who said the land was theirs and could not be sold by the government.
At the time, the department planned to lease and develop 33 properties identified for “revenue generation”.
The confusion over the land ownership stemmed from two changes of government — when the Ciskei government took over in 1961, and again in 1994 when SA became a democratic state.
The current land in question, over two hectares in size, is zoned for residential use with rezoning required as the province earmarks for potential use for hotels, holiday letting and backpackers’ lodge.
Local resident, Zama Ngqula, whose family has lived in Hamburg for 99 years, said he was aware of the plans.
“I heard about the plans about coastal properties in Hamburg, I know for a fact that public works has a property near the beach, but it is not clear what part that has been identified.
“We challenged the land that they wanted to take from us that belonged to our ancestors. We will await to hear on these developments,” Ngqula said.
Ngqushwa mayor Sanga Maneli said he became aware of the developments during the province’s investment conference in September 2025.
“It is something we appreciate a lot. There has been infrastructure there and this compliments what has been done,” Maneli said.
Buffalo City Metro’s coastal town of Kayser’s Beach is also set to undergo similar plans.
Though its one hectare parcel is zoned institutional for public and nonprofit use, the government plans to commercialise it for potential development for business, high density residential, commercial or retail use.
This will be released as one economic unit, and the bidder will have to consolidate before development.
Local estate agent Sarah Jones said she was surprised by the plans as the area was mostly known for commercial agricultural business.
Meanwhile, Kayser’s Beach resident Elvis Dloto said business opportunity was welcome.
However, he hoped these were not empty promises.
“We will see when it happens because we have been promised a lot of things.
“We heard that there’s going to be a taxi rank, then a shop, then they said businesses where our children will work.
“We will see when that happens and hope they employ local people, not people from elsewhere,” Dloto said.
The area has undergone major resurfacing in its inner streets.
Dloto said the government should consider fixing the roads that give entrance to the small town.
Its councillor, Ntombekhaya Sabana was laid to rest over the weekend after she died two weeks ago following a short illness.
The province is also looking to generate revenue by leasing Port St Johns’ underused caravan park.
A large portion of the site, with its chalets, is listed as being subject to floods due to its proximity to near the Umzimvubu River.
The site is being opened up for additional chalets with the hope of drawing more tourists to the coastal town.
Port St Johns municipal spokesperson Simthandile Ford said they welcome all initiatives that sought to transform land usage within the area and region.
“Though this is a provincial project, the municipality is excited in anticipation for the completion of this project, so that our communities can be part of many economic activities that are initiated by our government,” Ford said.
The provincial department said by leasing the land, the aim was to stimulate economic growth, through the development and utilisation of state-owned properties, to create an enabling environment for job creation and social upliftment.
The plan is set to be effected through the property transformation charter, a legal framework that seeks to promote transformation in the property sector, which allows new entrants from previously disadvantaged groups to lease state-owned properties.
Provincial public works spokesperson Vuyani Nkasayi said, at this stage, the department was unable to give the amount of income expected to be generated from the properties as it would depend on market response.
“However, there are reservation rentals for each property under SBD 3.1 of the tender document.
“We can only anticipate the money once we have concluded the lease agreement for those properties,” he said.
While Nkasayi said the department would provide support to the successful bidders during the development period, however, no financial support would be granted.
He said during the previous administration, the department resolved to transform the provincial property sector by prioritising the inclusion of black landlords.
“This approach formed part of a broader mission to drive socio-economic development and redress historical inequalities,” he said.
Nkasayi said the current administration had identified key initiatives and strategies to achieve the goal of creating new economic opportunities, using these state assets.
Some of these initiatives were a leasing strategy and, to date, 65% of its leases were with black landlords, he said.
This also includes the creation of the Mayibuye Property Incubator Programme, a five-year programme designed to mentor and support emerging property development companies and help them become sustainable.
“As the department, we are also encouraging public-private partnerships (PPPs), and it is for this reason that we continue to engage with financial institutions to create financial models that facilitate private investment in state-owned property development,” Nkasayi said.
Daily Dispatch
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