MBDA showcases transformative progress at Kariega Railway Sheds redevelopment.

On image: MBDA Chief Executive Officer, Mr Anele Qaba, local media and partners at the Kariega Railway Sheds.

The Mandela Bay Development Agency (MBDA) hosted media and strategic partners at the Kariega Railway Sheds to provide a first look at the significant progress made on one of its flagship urban renewal initiatives in the precinct. According to MBDA Chief Executive Officer, Mr Anele Qaba, the redevelopment will culminate in a Small Business Incubation and Business Park featuring flexible workspaces to support SMMEs and start-ups, directly addressing key economic pressures faced by young people and emerging enterprises. Construction, currently at 80% completion, has preserved the original outer brickwork of the heritage building. Once complete, the refurbished sheds will offer flexible spaces for education, events, conferences, office rentals, and small business development, forming a technology and innovation complex alongside the neighbouring Science and Technology Centre.

Qaba emphasised the dual mandate of heritage preservation and future-focused development, “We are honouring Kariega’s heritage in our rehabilitation of the site, while shaping what comes next. Kariega is in a prime position, close to major industry and the Coega SEZ - which makes it the perfect place to build something that supports innovation, young people and small business.”

In 2016, the MBDA’s mandate in Kariega expanded to include management of the Nelson Mandela Bay Science and Technology Centre and the responsibility to unlock broader development opportunities in the precinct. In 2024, the Agency allocated nearly half of its capital budget towards completing the Railway Sheds upgrade, a project that mirrors the catalytic impact of the successful Tramways redevelopment in Gqeberha’s Baakens Valley.

The construction programme focused on restoring the original footprint and shell of the heritage-classified structure, preserving its distinctive outer brickwork. The vision is to deliver a flexible, multi-use facility capable of accommodating educational spaces, events and conference facilities, office rentals, small-business opportunities, and an expansion of the adjacent Science and Technology Centre.

Project Milestones and Performance

• Commencement Date: 24 April 2024

• Site Handover: 26 April 2024

• Anticipated Completion: June 2026

Construction and economic impact:

• Estimated project value: R48 million

• Progress to date: 80%

• Expenditure to date: 75%

• EME/SMME appointments: 20 (16 completed work packages; 4 in progress)

• SMME contribution: ±33% of project expenditure

• Jobs created: 80 since project inception

Inside: Kariega Railway Sheds.

Future Prospects: Positioning Kariega as a Technology and Innovation Hub

The Eastern Cape continues to face substantial economic pressures, particularly in technology and innovation - sectors that are simultaneously challenging for youth and small businesses yet rich with opportunity. Kariega’s proximity to Volkswagen South Africa and the Coega Special Economic Zone positions it as a high-value location for innovation-driven development.

The revitalised Railway Sheds will form part of a proposed Science and Technology Park designed to:

• Promote innovation and technology development.

• Support start-ups and SMMEs.

• Create jobs and build skills.

• Strengthen collaboration between universities, industry, and government.

  
  

To support this vision, the MBDA has commissioned a full feasibility study focusing on economic profiling, global benchmarking, and identification of key partners across industry, academia, government, and national innovation networks. The study will inform the business model, financial plan, and operational framework of the Science and Technology Park, ensuring long-term viability and impact.

For more, visit: MBDA