By Lehlohonolo Lehana.
Minister of Public Works and Infrastructure, Dean Macpherson has announced plans to redevelop Telkom Towers precinct in Tshwane, which currently costs taxpayers R6.8 million a month in empty maintenance.
The building was used to house the SA Police Services (SAPS) before descending into an abandoned complex.
Macpherson said during the media briefing on Thursday, 10 September 2026, government is now planning a massive multi-billion-rand revamp mission, that will directly create more than 5,300 construction jobs, providing much-needed employment opportunities and supporting economic growth.
Based on current estimates, the redevelopment is expected to cost approximately R1.8 to R2.2 billion rand.
“When we combine these figures with the Telkom Towers base project, we see an extraordinary impact on the Pretoria CBD,” said Macpherson.
He stressed that government will not be investing this amount in the planned project, which will be delivered through a public-private partnership (PPP).
“Effectively this is an opportunity for the private sector to invest in government-owned infrastructure, to operate it, develop it, manage it and then return it after a period of time,” he said.
“They will make their money over time from lease payments that government will make for those departments that occupy this area.”
“Of course, there will be costs that government has to bear, but those costs will be worked out as the process unfolds.”
He said the department will be finalising a Memorandum of Understanding (MOU) with the Infrastructure Finance and Implementation Support Agency (Ifisa) in the coming days.
It will then formally approach the private sector to participate in the project by publishing a request for information (RFI) next week.
Minister of Finance Enoch Godongwana officially launched the Ifisa programme office at the South Africa Investment Conference in March this year.
It was established through a partnership between National Treasury, the Government Technical Advisory Centre and the Development Bank of Southern Africa.
Ifisa is mandated to mobilise private finance and technical expertise at scale to accelerate the infrastructure delivery across the country.
Macpherson said the RFI would also test a broader precinct-scale approach, with the Telkom Towers precinct serving as the base project and adjacent government-owned assets potentially being incorporated into the feasibility study.
He said this will ensure integrated planning and urban revitalisation in line with the Tshwane Inner City Regeneration Programme (TICRP).
Macpherson said this will specifically involve Public Works House (PWH), an entire city block that houses the DPWI’s head office, and the Central Government Offices (CGO) building.
“The department will actively play its role in driving inner-city rejuvenation and ensuring that government departments return to centre of Pretoria and are located in government buildings. This will ensure that we cut down on costly private sector leases and return that money to departments to be used for service delivery.”