MINING and agriculture were for many decades the bedrock of the Free State economy. The northwestern part of the province sits on top of a rich, gold-bearing reef. A large percentage of South Africa’s agricultural production, particularly grains, originate in the province.
More than half the nation’s sorghum, nearly half the sunflower and more than 30% of all wheat, maize, potatoes and groundnuts come from the fertile plains of the western and northern Free State. The valleys of the east produce almost all of South Africa’s cherries and asparagus. Livestock and flowers are other important agricultural products of this region.
The Free State’s economy presents huge opportunities for investors in the manufacturing sector. The Free State Development Corporation is actively searching for more investors and giving them a helping hand, as in the construction of factories. Economic planning for the province is attempting to integrate industrial development, rural development and the creation of sustainable SMMEs.
New economic drivers being targeted include
logistics, ICT, innovation and research, agriprocessing
and manufacturing in sectors such as
pharmaceuticals.
Plans are in place to leverage this through the
creation of development corridors (Gauteng-Free
State-KwaZulu-Natal and the N8 corridor), the
bolstering of train services (freight and passenger)
and the promotion of warehousing and storage
opportunities.
The Harrismith Logistics Hub on the N3 is at the centre of these plans, and early successes have already been achieved in persuading companies to locate their businesses here.
The Mangaung Chamber of Commerce and Industry (MCCI) is committed to promoting better business, more successful entrepreneurship, local economic development and the growth of businesses within all district municipalities in the province. Nancy de Sousa, president of MCCI, believes the sphere of focus in local economic development must be on those sectors which, because of their status in the agricultural, manufacturing and commercial environments, are the economic engines for the region.
What role do
roads play in the
economy?
The role of infrastructure
in the economic development
of any country is vitally important,
in particular, integrated transport
infrastructure. It has been proven in
numerous studies that access to transport through
trunk- and feeder-roads has a huge impact on
growth, access to social services and regional integration.
With regards to achieving sustainable development
goals, transport plays a central role.In the Free State, the transport
infrastructure is vital in sustaining and growing new businesses,
providing employment opportunities and upskilling
SMMEs.
With the Free State being in the centre of the country, there are many opportunities to create transport hubs and manufacturing and distribution facilities. The road infrastructure is needed to grow our province and sustain the growth.
What are the problems on the Free State’s roads? Pot holes, stormwater drains, the poor condition of feeder roads, roads that are not yet paved and the poor maintenance of gravel roads are a few of the complaints. Congestion in certain areas due to population growth and the infrastructure being outdated is also an issue.
Will upgrading and rehabilitation help? Upgrades and routine road maintenance will definitely help to reduce road incidents, improve
freight times, create employment and open up new business opportunities that can assist in growing the provincial economy.
How do you feel about the upliftment of local labour on SANRAL’s projects in the Free State? SANRAL is certainly taking a huge step in the right direction with its transformation policy. One of the mandates of the MCCI is to assist, mentor and help SMMEs to grow and become part of the economy.
What role does private business have in making the most of these projects? Private-public partnerships and concessions can be an effective way to develop the road infrastructure and in this space, the private sector plays a vital role.