Rob Hersov: Heritage or hindrance? Cape Town’s development woes echo a global “blight”

Key topics:Heritage Western Cape blocks key Cape Town development projects.Oude Molen and Athlone cases show political, regulatory obstruction.Local issues reflect global “Blight” of stalled progress and bureaucracy..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Rob Hersov.A critical examination of recent decisions by Heritage Western Cape (HWC) has ignited a contentious debate, with accusations that the provincial heritage authority is overstepping its mandate to obstruct crucial, non-commercial development projects. Critics, including the City of Cape Town, suggest a pattern of politically motivated obstructionism, potentially influenced by ANC-aligned interests.This local struggle, however, is not unique; it is a South African manifestation of a global phenomenon that venture capitalist Peter Thiel identifies as “The Blight”—a regulatory paralysis that chokes progress in even the world’s most innovative hubs.Heritage Western Cape, established under the National Heritage Resources Act, is entrusted with safeguarding the province’s rich cultural and natural heritage. Its mandate covers a wide array of resources, from historical buildings to intangible cultural heritage. However, two recent, high-profile cases have cast a harsh spotlight on how HWC wields its power, raising serious questions about its accountability and the true motives behind its decisions..Case Study 1: Oude Molen Eco Village:.The first case involves the Oude Molen Eco Village, a thriving community hub which the provincial Department of Infrastructure planned to develop into a mixed-use, mixed-income housing project. The proposal, including affordable and social housing, was designed to address pressing social needs. In May 2025, HWC rejected the project’s Heritage Impact Assessment (HIA) as “inadequate,” effectively halting the development. While the local community celebrated, the provincial government was told to go back to the drawing board, stalling a project aimed at providing tangible public benefits..Case Study 2: Athlone Power Station:.The second, more glaring, example is the dispute over the defunct Athlone Power Station. The City of Cape Town has ambitious plans to transform the site into a green energy hub. Despite the station being non-operational since 2003 and its cooling towers demolished in 2010, HWC declared the entire property a provincial heritage site, granting it provisional protection. This sweeping declaration, which includes an active wastewater treatment plant and a section of the N2 highway, has been met with disbelief. The city is now taking HWC to court, arguing it is hampering a vital public-interest project..A Global Perspective: The Blight Arrives in the Cape:.The situation in the Western Cape mirrors a troubling trend seen elsewhere. When Peter Thiel looks at the Los Angeles skyline, he sees a lack of construction cranes as a sign of stagnation, a symptom of “The Blight”. This regulatory disease makes it prohibitively expensive and time-consuming to build. In California, it can cost $400,000 in paperwork alone to build an apartment, and in 2018, it took longer to build a slip road for the Golden Gate Bridge than it took to construct the entire bridge in 1937. HWC’s actions appear to be importing this same paralysis to the Western Cape. By blocking a green energy hub and a social housing project, the heritage body is effectively removing the cranes from Cape Town’s skyline, prioritizing an abstract and often ill-defined notion of heritage over progress that addresses real-world problems like energy insecurity and housing shortages.This stands in stark contrast to pro-development cities like Austin, Texas. There, a boom in construction has led to a 22% decline in rents, even as its population has exploded. Tesla built its gigafactory in Austin in the time it takes to get a single permit in California. This demonstrates what is possible when regulators facilitate, rather than obstruct, development. The question for the Western Cape is whether it wants to follow the path of Austin’s dynamism or California’s stagnation..Conclusion: A Mandate in Question:.While heritage preservation is important, it should not become a weapon to block genuine progress. The actions of Heritage Western Cape in the Oude Molen and Athlone cases, when viewed through a global lens, are deeply concerning. They suggest a body captured by the same regulatory blight that has frozen development in other parts of the world, potentially for reasons of political manoeuvring rather than genuine heritage concerns.It is imperative that HWC’s decisions are subjected to greater scrutiny. The future of the Western Cape depends on a balanced approach that respects the past while building a prosperous and sustainable future. If Heritage Western Cape continues on its current path, it risks being seen not as a guardian of heritage, but as a local agent of a global blight, sacrificing the city’s future for a frozen-in-time past.

Rob Hersov: Heritage or hindrance? Cape Town’s development woes echo a global “blight”

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