Zithulele Township in Butterworth was built mainly for the hundreds of workers who worked at the factories in the area. They paid nominal rent to the Eastern Cape Development Corporation, a state-owned development entity. The workers, most of whom are now well beyond employable age, will receive the houses as a gift from their government.

Oscar Mabuyane will officially hand over the 105 homes to the beneficiaries on 24 April in Butterworth.

With a combined R5.7 million current property value, the houses that form part of Zithulelele Township were developed by the ECDC to provide residential housing for workers who were employed at the nearby Zithulele Factories in Butterworth.

This handing over of the 105 houses and 8 vacant plots of land in the township is implemented as part of the ECDC’s property strategy of unbundling non-core assets of their business, including its property portfolio.

Proceeds from unbundling of non-core assets, including stand-alone houses that have been sold by the ECDC, are invested into the renovations of the ECDC’s commercial and industrial properties.

When the ECDC built these houses, whose sizes ranges from 300 to 600 square meters, they were two-bedroomed houses but many tenants have since extended the structures.

This property handover to factory workers is in line with government’s ongoing program to provide decent housing to individuals and families that lack a decent shelter.

PROPERTY TRANSFER

As part of the agreement between the ECDC and Mnquma Local Municipality, the ECDC has provided the municipality with a list of valid tenants who have a right to take ownership of each property once the municipality completes the transfer of each property.

The municipality will subdivide the houses and issue ERF numbers to individual properties. Mnquma Local Municipality has also agreed to waive the R500 000 in rates owed by ECDC to the municipality in respect of Zithulele Township. ECDC currently pays rates to the municipality on behalf of the township dwellers.