By Johnathan Paoli
In a move to revitalise public infrastructure and stimulate economic growth, the provincial government has appointed the Gauteng Infrastructure Financing Agency (GIFA) to lead the commercialisation of the province’s portfolio of immovable assets.
Infrastructure development and cooperative governance and traditional affairs MEC Jacob Mamabolo described the appointment as a cornerstone of the province’s broader asset optimisation strategy.
“This appointment forms part of the province’s broader plan to better manage its property portfolio through a multi-faceted strategy that includes the disposal of non-core assets, short-term and long-term leasing, and the promotion of private sector investment and development in a challenging fiscal environment,” Mamabolo said on Thursday.
With an estimated value of R59 billion, these state-owned properties represent a significant opportunity to unlock investment, generate revenue and reduce operational costs in an increasingly constrained fiscal environment.
Mamabolo said that by partnering with the private sector, the government aimed to transform state-owned properties from being a financial burden into productive assets able to generate revenue, create jobs and stimulate economic growth.
Gauteng’s immovable asset portfolio includes a diverse mix of high-rise office buildings, residential housing, vacant land and other infrastructure spread across the province.
A significant number of these properties are either vacant or underutilised, costing the province millions in maintenance, security, utility bills and municipal rates.
The persistent costs associated with unproductive assets have prompted the government to adopt a more aggressive, results-oriented approach.
According to Mamabolo, the goal is to shift from a system of passive ownership to active asset management, aligning property holdings with economic and developmental goals.
He said GIFA, which had a proven track record in infrastructure financing and facilitating public-private partnerships, has been tasked with conducting a full-scale review of the provincial asset base.
This includes compiling a detailed portfolio profile, assessing the commercial potential of each property and preparing prioritised assets for market engagement.
The agency’s work will be guided by the Government Immovable Asset Management Act, which mandates efficient and effective use of government properties in support of service delivery and public interest.
GIFA’s assignment also includes identifying high-potential sites for commercialisation or development, and recommending options such as lease agreements, property sales, or PPPs.
Additionally, it will initiate feasibility studies and investment cases to attract private capital, while collaborating with municipalities, departments and other stakeholders to unlock value.
Mamabolo noted that this partnership approach would ensure that the government retained control of strategic assets while maximising their socio-economic returns.
To ensure accountability and progress, the initiative will be monitored and reported on quarterly.
The provincial government anticipates delivering measurable results by the end of the current financial year.
A parallel process is also underway to update and consolidate the provincial immovable asset register, an essential step in ensuring accuracy, transparency and informed decision-making for future commercialisation efforts.
Mamabolo said the success of this initiative could also serve as a model for other provinces grappling with similar issues and inspire a national conversation on how best to use public resources to drive inclusive development.
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