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.
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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.
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