Tshwane to save R24 million annually with new Lesedi Building for municipal workers

The City of Tshwane is set to save a minimum of R24 million per year with the launch of the newly-refurbished Lesedi Building, previously Avbob Midtown, which will house municipal workers.

Around 450 employees from various departments are set to move into the building at the corner of Madiba and Sisulu streets in Pretoria, previously leased by the city.

Tshwane Mayor Nasiphi Moya officially unveiled the building on Monday, showcasing her administration's commitment to boosting in-house capacity by utilising municipal assets and reducing dependence on costly commercial leases.

"The move is part of our strategy to rationalise municipal office spaces and reduce internal costs," she said. 

She added that her administration has already reduced leasing costs by R100 million, and this current move will save the city an additional R24 million per year.

The city is currently leasing office space from private landlords at steep rates, straining its finances. 

The plan, according to the city, is to phase out leased buildings and occupy city-owned properties, reducing reliance on private landlords and cutting rental costs, especially in Region 3.

Moya said the city is shifting from having one department per building, aiming to consolidate staff under one roof.

“It is more than one team that will be based in this and we are starting this integration and collaboration culture between our employees,” she said.

She mentioned that the city has faced occupational health and safety challenges, with staff health issues stemming from neglecting the buildings they occupied.

“In addition to just having our own buildings, we are moving where our own staff must feel safe and healthy when they are at work,” she said.

She stated that cutting operational costs will ultimately benefit residents, as funds previously spent on leasing will be reallocated to service delivery.

Member of the Mayoral Committee for Corporate and Shared Services, Kholofelo Morodi, stated that unveiling Lesedi House is part of the city's broader initiative to optimise and modernise office accommodation citywide.

The relocation of around 450 employees from Shared Services and Water and Sanitation departments to the building is already underway, she said.

Morodi said: “By repurposing existing council-owned buildings, rather than pursuing costly new builds or leases - we demonstrate sound financial stewardship and ensure value for money. This allows us to direct more resources towards the frontline services residents rely on every day.

She added that the next phase will cover regions one and two, with plans to repurpose council assets for Tshwane Metro Police Department's accommodation.

“When our staff have the right conditions to perform, our residents experience better service delivery and that remains our ultimate priority,” she said.

rapula.moatshe@inl.co.za