Demacon Reports

Research conducted in 2014 by Demacon Market Studies showed that with targeted interventions, significant development is possible in Philippi, with major implications for the economy of the area.


The Demacon study looked at how land in the Philippi area could be best developed for maximum potential social and economic benefits.

PEDI’s goal was to find ways to meet its mandate to facilitate growth of a suburb where people choose to work, to live, play and pray. PEDI believes development should be holistic, and a follow-up study also explored the need for social infrastructure for Philippi.

Demacon described a “High Road” scenario that was possible with investment and a “baseline” scenario that could be expected without intervention over eight years.

The ‘High Road’ assessment suggested that:

  • Targeted development of Philippi could provide a staggering R8.1 billion for the fiscus from VAT, PAYE and Company Taxes annually.

  • Targeted development of Philippi could provide a staggering R8.1 billion for the fiscus from VAT, PAYE and Company Taxes annually.

  • Property rates and taxes worth some R700 million would potentially be released which could be used to pay for desperately needed service delivery.

  • Private and public sector could generate R8 billion in once off spending in construction and generate some 60 000 jobs over 8 years.

  • The study indicated that the future GDP, when development was completed, would be estimated at R15 billion, and could create some 52 000 sustainable jobs from the operations of the built facilities beyond the eight-year period.

Download the
Demacon Reports

Demacon Draft Report
December 2013

Demacon Philippi Market Study
January 2014

Demacon Philippi Social Facilities Report
January 2014

Social infrastructure

What the study also showed, however, was that the area needs 67 hectares of new social infrastructure development, and existing facilities are way behind what they should be. The same is true for housing, transport, and access to jobs. The difference in the estimated outcomes of the “High Road” scenario and the  “baseline” scenario was staggering, and sharply illustrated the need for coordinated interventions.


The study also looked at the way major roads bypass Philippi has had a negative impact on development in the area over decades. A ring of roads  – Vanguard Drive, the R300, the N2 and Landsdowne Road – effectively create a barrier which turns the Philippi industrial area into an island instead of facilitating its development.

In short, the Demacon showed the massive opportunity for development in the Philippi area, with investment able to provide:


Sustainable feed into the fiscus from PAYE, VAT and Company taxes annually.


Sustainable feed from property rates and taxes annually.


Jobs during construction phase of development (R8 Billion in projects).


Sustainable jobs during the ongoing operation of the area.