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Free State Business 2025

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Free State Business - A unique guide to business and investment in the Free State. The 2025 edition of Free State Business is the 14th issue of this successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State. Several of the agencies of the Free State’s provincial government have taken space within this publication to outline their plans and achievements to date in attracting new investments into South Africa’s most centrally located province, including the hosting of an investment conference. A UK company has announced the R500-million purchase of a uranium-producing shaft. This issue contains a special feature on skills development within the province. News about these and other developments are contained in the sector overviews that outline the characteristics of the main economic sectors of the province, and report on the latest news in those sectors as well. One of the newest sectors is natural gas and helium, both of which are being pursued by Renergen through its Virginia Gas Project. Significant investments are being attracted to the Maluti-A-Phofung Special Economic Zone (MAPSEZ) in the northern part of the province and there are plans to establish another SEZ related to the gas find around Welkom. Special features on investment incentives and starting a business in the South African context are included in this edition. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.freestatebusiness.co.za. Updated information on the Free State is also available through our monthly e-newsletter, which you can subscribe to online at https://www.globalafricanetwork.com and https://www.southafricanbusiness.co.za, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the newest addition to our list of publications, The Journal of African Business, which was launched in 2020.

FOCUSFree State

FOCUSFree State TourismThe Free State has a wide range of opportunities available in every subsector of tourism.Investment in tourism stimulates other industries and is a multiplier, providing jobs andlong-term sustainability. Small businesses can serve as critical gateways for economicallydisadvantaged communities to access new economic opportunities.Tourism stands as theworld’s most influentialindustry, attracting thekeen interest of businessleaders and policymakers. Manycountries leverage tourism asa powerful driver of economicgrowth, boosting GDP, generatingforeign exchange, creating jobopportunities and strengtheningtax revenues. It is no surprisethat developing nations viewtourism as a strategic tool forpoverty alleviation.Investment plays a crucial rolein economic development byenhancing production capacity,increasing regional income andfostering job creation. As a keycomponent of GDP, investmentin tourism stimulates otherindustries such as construction,communication, trade, agriculture,consumer goods manufacturingand local crafts leading to a morediversified and resilient economy.With a clear understanding ofthe current landscape, stakeholderscan effectively plan and implementstrategies to drive sustainabletourism development.Many nations have embracedtourism as a means of economicdiversification. Historically, South Africa’s economy, particularly in theFree State’s Lejweleputswa district, has been anchored in gold mining,with extensive forward and vertical industry linkages. However, as miningproduction declines, former mining towns face economic disruption andrising unemployment. In this evolving landscape, tourism is emerging asa “new gold” with the potential to revitalise local economies. While large,locally owned tourism groups play a key role in South Africa’s travel andtourism sector, the industry is predominantly driven by small and mediumsizedenterprises (SMMEs). These businesses serve as critical gatewaysfor economically disadvantaged communities to access new economicopportunities, especially in a country with one of the world’s most unequaldistributions of income and wealth.A region’s economic potential is a vital catalyst for tourism industryexpansion. Currently, the Free State province is well-positioned to harnessits abundant natural beauty, rich cultural heritage and thriving SMMEsector to attract tourism investments. By strategically capitalising on theseopportunities, the province can unlock its full potential and contribute tolong-term economic transformation.Recent data highlights the strength of intra-provincial tourism inthe Free State, with 55.7% of domestic visitors coming from within theprovince itself. Gauteng serves as the most significant external sourcemarket, accounting for 22.7% of visitors, followed by the North Westat 15%. Their close proximity and accessibility make them key feedermarkets. These insights present valuable opportunities for targetedtourism marketing and investment strategies to further enhance regionaltourism growth.Stakeholder involvementActive stakeholder participation is a key driver in shaping andmanaging tourism development, ensuring that individuals contributemeaningfully to decision-making processes. By engaging stakeholderswith specialised knowledge and insights, tourism planningbecomes more effective, trans-parent and results-driven. TheirFREE STATE BUSINESS 202518PHOTO: SA Tourism

The Windmill Casino is on the N1 on the outskirtsof Bloemfontein.Sterkfontein Nature Reserve is a provincialgovernment asset.involvement strengthens thedemocratic nature of decisionmaking,fosters collaboration andenhances the overall quality oftourism strategies.In the Free State, stakeholderengagement plays a crucial rolein unlocking tourism investmentpotential. By actively involvinglocal communities in the planning,execution and managementof tourism initiatives, a strongersense of ownership is cultivated,ensuring that economic benefitsare equitably distributed. Keytourism investment opportunitiesexist in thriving tourist towns suchas Clarens, Parys and others whereenhanced infrastructure, hospitalityservices and eco-tourism venturescan drive regional growth. Prior toinvesting in these high-potentialareas, broad stakeholder engagementis essential to secure communitysupport and alignmentwith sustainable tourism objectives.Road infrastructureBy prioritising infrastructuredevelopment, the Free Statecan unlock new tourism andinvestment opportunities, attractmore visitors and ensure sustainableeconomic growth. An upgradedand well-maintained road networkwill position the province as anaccessible, attractive and thrivingtourism destination.A well-developed road networkis a key enabler of a thrivingtourism sector, directly impactingtransportation efficiency, tourism products and market accessibility.A reliable and high-quality transport system is essential for sustainingand expanding tourism as it ensures seamless connectivity betweenattractions, accommodations and key travel hubs.Cultural tourismCultural heritage is a priceless asset, passed down from generationto generation, offering a deep connection to our shared history andidentity. It serves as a vital resource, not just for the communities whocreate it, but for the world at large, carrying universal significance thattranscends borders and cultures.In the Free State, cultural heritage is a powerful tool for tourismdevelopment. From indigenous traditions and historical landmarksto art, music and crafts, the region boasts a rich tapestry of culturalassets waiting to be explored. Cultural heritage is not only a reflectionof a society’s material wealth but also its spiritual and intellectualachievements. This intricate blend of tangible and intangible treasuresoffers immense potential for investment in cultural tourism.As cultural-heritage tourism becomes an increasingly popular traveltrend, the Free State is uniquely positioned to harness this growth.The province’s rich history, vibrant communities and diverse culturalexpressions provide a compelling reason for tourists to visit and engage.Investing in cultural tourism ventures, such as heritage trails, culturalfestivals, museums and interactive experiences, will not only attractdomestic and international visitors but also foster sustainable economicdevelopment. By preserving and promoting cultural heritage, tourism canact as a catalyst for social inclusion, job creation and local empowerment.The Free State province, with its wide array of indigenous communities,each possessing unique traditions, arts and culinary practices, presents anoutstanding investment opportunity for cultural tourism development.By focusing on preserving and promoting these cultural assets, theregion can tap into the growing demand for authentic travel experiences.Investment in the development of heritage sites, cultural festivals andcommunity-based tourism projects will not only enhance the province’stourism appeal but also provide significant economic and social benefitsfor local populations.Scenic landscapesThe breathtaking and diverse landscapes of the Free State provincepresent an exceptional opportunity for tourism invest-ment. Landscapesare not just a backdrop for travel; they are the heart of tourism, shapingPHOTO: Sun International, FSGLTA19 FREE STATE BUSINESS 2025

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