Egodini Mall project in turmoil

The long-delayed Egodini Mall redevelopment project has hit yet another major stumbling block, with South Africa-based contractor Terracotta Trading (Pvt) Ltd requesting to revise its investment downwards from nearly US$60 million to just US$10,5 million - a move that has sparked outrage and renewed calls for contract termination.

Terracotta, which was awarded the project by Bulawayo City Council (BCC) in October 2012, has consistently failed to complete the work more than a decade later, citing challenges with local suppliers. However, the project has become a symbol of stagnation, unmet expectations and unfulfilled promises to the people of Bulawayo.

According to minutes from a recent BCC full council meeting, the embattled contractor made the shock proposal during a discussion held on June 10, 2025, with council officials and technical advisors. The city's Department of Works reported that it was actively engaging Terracotta regarding the possibility of cancelling the development agreement.

"In an earlier meeting, the developer, Terracotta, alluded to the desire to change the project investment from US$60 million to US$10,5 million in the redevelopment project," read the official minutes of the meeting.

Council's technical team immediately advised that any significant downward variation in project cost would necessitate a change in the project scope, which would in turn require re-advertising the tender in compliance with procurement regulations. The team reminded the developer that the original bid of US$59,599,480.48 was binding and formed part of the contract. By comparison, the second-highest bid at the time was US$30 million, and the third was US$3 million.

Council resolved to extend the cancellation notice period by three more months, moving the deadline to September 12, 2025, to allow for further engagement. However, officials made it clear that if Terracotta insists on drastically reducing its scope, termination of the contract would be inevitable.

During the meeting, BCC's technical team also stressed the need for a performance bond worth 10% of the cost of outstanding works and urged Terracotta to prioritise construction of anchor shops, food outlets, supermarkets, and bus ranks to boost business viability and improve passenger traffic.

Several councillors voiced concern over the developer's performance and questioned whether the project could ever meet the originally promised standard.

Councillor Roy Sekete urged the city to work with contractors that have proven capacity, questioning whether the US$3 million reportedly spent so far had yielded any value.

Councillor Alack Ndlovu was more forthright, calling for the immediate termination of the contract, saying the drastically revised investment figure raised serious doubts about the project's viability.

"The biggest concern was how much council would have to pay in compensation?" Ndlovu queried. Officials responded that an assessment had already been conducted and indicated that the compensation due to Terracotta would not exceed US$3 million, the amount the company claims to have spent on site.

The minutes also captured concerns from the Chamber Secretary, who warned that reducing the project cost to US$10,5 million would significantly compromise the quality and standard initially envisioned for the mall.

Despite the concerns, Town Clerk Christopher Dube informed the meeting that Terracotta had assured council it remained committed to delivering on the original contract. So far, the developer has only completed commuter omnibus loading bays and informal vending stalls, while the main mall infrastructure remains unfinished more than 12 years after the contract was awarded.

The Egodini project was once hailed as a transformative urban renewal initiative meant to modernise Bulawayo's transport and commercial hub. However, the latest developments now raise serious doubts about the project's future - and whether residents will ever see it come to life.