South Africa’s Retail Sector Expands with Launch of Mbhashe LG Mall
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South Africa’s retail sector is experiencing significant growth with the recent opening of the Mbhashe LG Mall in Dutywa, Eastern Cape. This spacious shopping complex covers 19,701 square meters and was developed collaboratively by McCormick Property Development and Seven Days Trading Pty Ltd for Exemplar, a retail property fund listed on the Johannesburg Stock Exchange (JSE).
The mall officially opened on March 27, aiming to boost the local economy by providing essential retail, banking, and food services to a community that previously had restricted access to such amenities. Its launch coincided with another major retail project, Westown Square, in KwaZulu-Natal, led by the private entity Fundamentum, marking a significant day for the country’s retail landscape.
The Mbhashe LG Mall features prominent retail anchors such as Boxer and Shoprite, along with a diverse mix of national retailers like Clicks Group, Capitec, Absa, Nedbank, Standard Bank, Mr Price Group, Pepkor Group, TFG, and Famous Brands. With over 60 retailers, 85% of which are established national names, the mall represents a substantial investment in the region.
Jason McCormick, CEO of Exemplar, emphasized the company’s commitment to economic advancement and job creation through high-quality retail offerings. He stated, “Our commitment to fostering economic development, creating job opportunities, and delivering quality retail remains our driving force. Mbhashe LG Mall not only achieves these objectives but is also visually striking. The view of the mall from the N2 will literally stop you in your tracks, with iconic entrances and vibrant colors that draw shoppers in to explore a wealth of retail choices.” His remarks highlight the mall’s aesthetic appeal and strategic location.
To ensure convenience for visitors, the mall includes transportation facilities such as an on-site taxi rank with 40 bays and dedicated taxi offices, supporting two taxi associations for easy commuter access.
Constructed in just over 12 months through the combined efforts of MDS Architecture and Architects Unbound, the development of the mall prioritized community engagement, skills training, and local empowerment. During its peak construction phase, over 700 jobs were created, with post-completion employment opportunities expected to rise to around 1,200.
Project manager Ruan van Rensburg underscored the importance of community upliftment and skill development throughout the project. “In addition to providing local jobs, it was vital to ensure skills transfer and upliftment during the process. Programs for local students included trades such as bricklaying, plumbing, plastering, and safety training,” he noted. This approach aims not only to enhance retail accessibility but also to encourage further investment in the area, fostering long-term community welfare and economic stability.
The Mbhashe LG Mall is part of a broader trend in South Africa’s retail landscape, where developers are increasingly focusing on underserved rural communities. Exemplar has previously funded other retail developments in the Eastern Cape, including KwaBhaca Mall and Bizana Walk, and owns a portfolio of 27 assets with six additional projects under management. This strategic focus on rural retail spaces aims to maximize shareholder growth while addressing the needs of communities with limited access to retail infrastructure.
Additionally, the mall’s design incorporates sustainable practices and community-centric features, ensuring it catalyzes further investment and development in the region. The success of Mbhashe LG Mall highlights the potential for similar projects to drive economic growth and improve the quality of life in rural areas.
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