Big boost for Cape Town as Amazon chooses city for African headquarters

Image credit: Flickr/ActuaLitté

The City of Cape Town has approved a new R4 billion development that is set to house the African headquarters of American retail giant Amazon.

In a statement on Monday (19 April), the City said it had granted an approval to Liesbeek Leisure Properties Trust to construct the River Club Development.

Mixed-use development

The 150,000m² mixed-use space will be divided into two precincts – one commercial and the other residential.

“It is envisaged that 5,239 jobs will be created in the construction phase alone. The project will also create up to 19,000 indirect and induced jobs,” the City said.

Aspects of the River Club Development include:

  • 59,600m² office space;
  • 20,700m² retail space;
  • 8,200m² hotel;
  • 4,100m² gym;
  • Restaurants, conferencing, school and events space;
  • 20 percent of the residential floor space will be allocated for affordable housing opportunities.

Amazon to be anchor tenant

Amazon will be the anchor tenant, with its offices becoming a base for its operations on the African continent.

“The development is envisaged to take place in phases, with construction set to take place over three to five years,” City of Cape Town indicated.

“The development of Precinct 1 includes mixed-use and a floor space of approximately 60,000m². Precinct 2 will house the Amazon headquarters, which is 70,000m² of floor space.”

Cape town Mayor Dan Plato said the City has “thoroughly considered” all submissions and concerns raised during the public participation process.

“We are acutely aware of the need to balance investment and job creation, along with heritage and planning considerations. It is clear that this development offers many economic, social and environmental benefits for the area,” he said.

DA MP and Shadow Minister for Trade, Industry and Competition, Dean Macpherson, also welcomed the approval in a statement on Tuesday.

He said, “The announcement highlights that the City of Cape Town has set itself at the forefront of investment and economic development in the country, while keeping local concerns front of mind.”

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