SA Government to Cut Rent Costs by Using State-Owned Land for Construction

Summary

The South African government owns a vast amount of property, including 88,000 buildings and 5 million hectares of land. Despite this, it pays approximately R6 billion each year in rent for spaces it could potentially use itself. To address this, Public Works Minister Dean Macpherson has announced plans to better manage these assets and reduce the costs associated with leasing. The goal is to turn the government’s property holdings into active construction and development projects. This could lower government spending on rentals and possibly create jobs through new construction efforts. The move also aims to make better use of public land and buildings, improving the efficiency of government operations. If successful, this plan could stimulate economic growth by increasing activity in the construction sector and better using government-owned resources.