XXXXXA REGIONAL OVERVIEW
XXXXXA REGIONAL OVERVIEW OF THEFREE STATEGold prices have buoyed the province’s producers even as minesreach the end of their lifespans and a UK investor has bought auranium asset for R500-million. The Second Free State InvestmentConference in 2024 attracted interest in a wide range of sectors asthe province positions itself to take advantage of its location and itsnatural resources. This includes plans to create an energy-focusedSpecial Economic Zone.By John YoungThe fact that gold-mining company Harmonyis powering ahead with its plans to increasethe amount of power that is generated bysolar power at its operations and offices isa sign of the times. It is supporting small-scale solarinstallations in addition to having commissionedsolar PV facilities in the Free State, pictured.This trend is something that the Free State asa province is embracing. The Free State provincialgovernment announced in 2024 that its goal was“to position the Free State as the country’s centralenergy logistics, distribution and beneficiation hub”.An Energy Security Indaba was held to investigateopportunities in natural gas, solar, coal, ethanol, wind,uranium, hydropower and hydrogen.An energy consulting firm announced in 2022that the extremely positive resource findings for theVirginia Gas Project were, in fact, an understatement.As it happens, the site of the project is close to wheregold was for many decades mined, an industry thatsupported thousands of jobs. The prospects for thecompany Renergen, which is the owner of Tetra4,the holder of the licence, to exploit the natural gas ofthe area, are on the rise although the production ofhelium has faced some headwinds.The Virginia Gas Project covers 187 000ha inthe rather flat triangle created by Welkom, Virginiaand Theunissen in the south. The ProvincialGovernment of the Free State has announced thatit has begun a process to create an energy-focusedSpecial Economic Zone (SEZ) in MatjhabengLocal Municipality, which includes Welkom andVirginia. The local municipality falls within theLejweleputswa District Municipality, which coversmost of the western part of the province.Although gold mines are in their last days asresources are mined out, good global prices havekept investors happy. Sibanye Stillwater also soldthe Beatrix 4 shaft (the Beisa uranium project) toUK-based Neo Energy Metals for R500-million butFREE STATE BUSINESS 202510PHOTO: Harmony
SPECIAL FEATUREgains a shareholding in the company and access tothe product.The Free State Province is blessed with abundantnatural resources and tourism assets. A numberof measures are being undertaken to make surethat these advantages are recognised by potentialinvestors. Among the things that investors liketo see is good infrastructure and more than onebody is working to deliver that in the province. TheProvincial Government of the Free State reports thatit is working with Infrastructure South Africa andother tiers of government to develop a pipeline ofbankable projects.Roads in South Africa fall under various entitiesand the Free State’s central position means that ithosts many national roads. However, the provincehas committed to spend more than R1-billion on itsAccess Roads Programme, which will not only makeit easier for farmers and other producers to get theirproducts to market, but also create some 5 000 parttimejob opportunities.Various construction and renovation projectsare underway that will contribute to improvedinfrastructure. These include indoor sport centresin Dinoheng, Smithfield and Frankfort, arts studiosin three districts, the Basotho Cultural Villageand community libraries in Tumahole, Cornelia,Bluegumbusch and Van Standensrus.Industrial parks and SEZThe Maluti-A-Phofung Special Economic Zone(MAPSEZ), the strategically located area on theN3 highway, is attracting investors to the FreeState Province. The aim is to attract R2-billion innew investments.Sectors prioritised at the MAPSEZ includelogistics, ICT, automotive, pharmaceuticals,manufacturing and agro-processing. The 1 000hasite has four zones: agro-processing, light industrial,heavy industrial and a container terminal. Controlof the project now rests with the provincialDepartment of Small Business Development,Tourism and Environmental Affairs (DESTEA).Other areas that are being upgraded to provideinfrastructure to encourage manufacturing are thePhuthaditjhaba Industrial Park and the BotshabeloIndustrial Park, where a foreign firm has startedconstruction of a new steel mill. The Digital Hub inthe Botshabelo Industrial Park has been launched.Young people in Botshabelo have a space tolearn how to code, develop games andprogramme robotics.The Chemical Industries and Training Authority(CHIETA) has announced that the MAPSEZ will bethe site of the latest of its Smart Skills Centres, areasdesigned to assist rural and underserviced areascome up to speed in digital technology.Provincial assetsInternational fuel, gas and chemicals companySasol regularly invests in new technologies andin expanding production of its many products.Mining is reduced in importance but remains asignificant employer. In agriculture, the Free Stateis looking forward to the implementation of theAfrican Continental Free Trade Area (AfCFTA). TheFree State’s agricultural export basket is well suited totrading with African states and strategies are beingconsidered to promote apples, asparagus, cherries,cut flowers, sorghum, venison and wine.The Free State produces significant proportionsof South Africa’s wheat (30%), sunflowers (45%) andmaize (45%) and is ranked third in contribution tonational GDP in agriculture.The Free State shares borders with six otherprovinces, in addition to the Mountain Kingdomof Lesotho. A summer-rainfall region with a meanannual rainfall of 532mm, the Free State’s climate,soil types and topography vary greatly within theprovince, with plains in the west and mountains inthe east. The western and southern areas are semidesert,with some Karoo vegetation occurring in thesouth. The southernmost region of the Free State is alargely dry area with open grasslands predominating,although it is also home to the Gariep Dam, SouthAfrica’s largest dam. ■The Loch Logan Waterfront is for sale.PHOTO: Broll Auctions and Sales 11FREE STATE BUSINESS 2025
