Plans for a new major shopping centre near Kroonpark have ignited fierce debate in Kroonstad, with residents and business owners warning that the development could deepen the town’s economic struggles rather than revive the economy.
The proposed 21 926 m² retail development has already been approved by the Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea), despite assessments indicating that Kroonstad’s economy is under severe pressure.
Former mayor Motloheloa Ellis Mokatsane, who resigned in April, reportedly supported the development.
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The issues of high unemployment, stagnant household income and struggling businesses in the central business district (CBD) have intensified concerns over whether the town can sustain another large retail complex.
Local business leaders fear the development could accelerate the decline of Kroonstad’s historic town centre, following trends seen in towns such as Welkom and Klerksdorp, where economic activity gradually shifted away from traditional CBDs towards newer shopping nodes.
Residents, in turn, are distressed about the probability of such a shift leaving behind vacant buildings, leading to reduced property values and increased crime in the town centre.
The opening of Maokeng Mall in the aftermath of the Covid-19 pandemic already reshaped Kroonstad’s retail landscape. Business owners argue that the proposed expansion is out of proportion to the spending power of local consumers and could simply redistribute existing spending rather than generate new economic growth.
Several established businesses in Kroonstad have reportedly obtained legal advice regarding the development and its possible economic and environmental consequences.
Taking somewhat more of a positive view, some business owners do believe the development could provide economic benefit – on the condition that it rather be situated alongside the N1 highway, where thousands of travellers pass daily. They argue that an N1 location could attract new money through tourism and passing trade, instead of diverting spending away from existing businesses.
Kroonstad’s ageing sewerage infrastructure has emerged as another concern. Residents say the Moqhaka Municipality is already struggling with leaking pipelines, failing systems and ongoing sewerage problems affecting communities daily. Critics argue that the town’s existing infrastructure may not be capable of supporting another large-scale commercial development.
Concerned business owner John Erasmus warned that the project could result in “retail cannibalism” while placing further strain on already failing infrastructure.
- VrystaatKroon has submitted enquiries to the municipality and is awaiting official comment.
