Public Works and Infrastructure Minister Dean Macpherson has described the newly announced State Property Company as the most significant shift in the management of government assets since 1994a move he says will finally end the absurdity of the state leasing private buildings while its own properties lie vacant.
Speaking during the State of the Nation Address debate on Wednesday, Macpherson framed the proposed investment vehicle as a fundamental break from decades of dysfunction.
“For decades, South Africa has owned the largest property portfolio in the country, yet, too many assets stand vacant, vandalised, hijacked or underused,” he said.
The Contradiction in Numbers
The scale of the problem is striking. Macpherson revealed that the state spends up to R6 billion every year leasing private buildingswhile prime state-owned properties sit empty, deteriorating, and generating nothing.
“We sit on an enormous asset value base if we don’t generate any revenue to fund asset maintenance,” he said. “These contradictions end today.”
The State Property Company, announced by President Cyril Ramaphosa in his recent State of the Nation Address, is designed to change that. It will operate as a professional property investment vehicle, tasked with managing state assets for maximum return.
Wealth for Generations
Macpherson’s vision extends beyond simply plugging leaks. He argued that the company will create an asset book capable of generating wealth for the public “for generations to come.”
That means not just maintaining buildings, but actively developing and commercialising themturning liabilities into income streams.
A Long Time Coming
The dysfunction in state property management has been documented for years. Auditors have repeatedly flagged billions in irregular expenditure, lost rental income, and deterioration of assets. Vacant government buildings have become magnets for vandalism and hijacking, while departments sign expensive leases for private space.
Macpherson’s announcement signals a shift in philosophy: from viewing property as a passive holding to managing it as an active portfolio.
The Test Ahead
Creating the company is one thing. Making it work is another. The state’s track record with commercial ventures is mixed at best. Professional management, clear mandates, and insulation from political interference will be essential.
But Macpherson’s rhetoric leaves no doubt about the ambition. “These contradictions end today,” he declared.
For a government that has long struggled to manage what it owns, the State Property Company represents both a promise and a test. If it succeeds, it could unlock billions in value. If it fails, it will be another addition to the portfolio of neglect.
