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Free State Province Investment Prospectus 2024

  • Text
  • Region
  • Provincial
  • Southafrica
  • Freestate
  • Business
  • Investment
  • Prospectus
  • Bloemfontein
  • Mangaung
  • Metropolitan
  • Sector
  • Opportunities
  • Economic
  • Investors
  • Municipality
  • Tourism
  • Province

6 INTRODUCTION THE FREE

6 INTRODUCTION THE FREE STATE PROVINCE The Free State Province is South Africa’s most centrally located province, with easy access along major national highways to all of the country’s other major centres. That central position was the reason behind the decision of African leaders to meet in what is now the provincial capital, Bloemfontein, when they decided to establish the African National Congress in 1912. The Free State is blessed with abundant natural resources and tourism assets. Agriculture and gold mining have long been the mainstays of the Free State economy, together with the chemicals complex centred on the operations of Sasol and related companies in the northern section of the province. Another abundant resource is solar power, and several companies are taking advantages of incentives to establish solar parks in the province. A number of measures are being undertaken to make sure that these advantages are recognised by potential investors. Among the things that investors like to see is good infrastructure and more than one body is working to deliver that in the province. While mining is declining as mines are worked out, a new kind of liquid gold has been discovered in the form of liquid natural gas and helium. The Free State’s farmers continue to feed the nation and export in large quantities. More than half the nation’s sorghum comes from the province, as does more than 30% of maize, wheat, potatoes and groundnuts. Bothaville is home to one of the biggest annual agricultural markets of its kind, NAMPO Harvest Day. Two of South Africa’s great rivers form the north-eastern (Vaal River) and southern (Orange River) boundaries of the province. Bloemfontein is the capital of the province and South Africa’s judicial capital. The Vredefort Dome, 10km in diameter, in the Fezile Dabi District Municipality, is a UNESCO World Heritage Site. The Free State is divided into one metropolitan municipality (Mangaung Metropolitan Municipality which includes Bloemfontein), four district municipalities and 18 local municipalities. THE DISTRICT MUNICIPALITIES ARE: • Fezile Dabi District Municipality, principal towns: Deneysville, Frankfort, Heilbron, Kroonstad, Parys, Sasolburg, Steynsrus, Viljoenskroon, Vredefort • Lejweleputswa District Municipality: Allanridge, Bothaville, Brandfort, Hennenman, Odendaalsrus, Theunissen, Ventersburg, Virginia, Welkom, Wesselsbron, Winburg • Thabo Mofutsanyana District Municipality: Bethlehem, Clarens, Clocolan, Ficksburg, Fouriesburg, Golden Gate Highlands National Park, Harrismith, Ladybrand, Phuthaditjhaba, Reitz, Rosendal, Senekal, Warden • Xhariep District Municipality: Bethulie, Fauresmith, Gariep Dam, Jacobsdal, Koffiefontein, Petrusburg, Philippolis, Reddersburg, Rouxville, Smithfield, Trompsburg, Zastron DEPARTMENT OF ECONOMIC, SMALL BUSINESS DEVELOPMENT, TOURISM AND ENVIRONMENTAL AFFAIRS (DESTEA) Private Bag X20801, Bloemfontein 9300 113 St Andrews Street, Bloemfontein 9301 Website: www.destea.gov.za | Tel: 051 404 9600

7 THE FREE STATE AT A GLANCE THE FREE STATE PROVINCE IN STATISTICS FREE STATE GROSS DOMESTIC PRODUCT (GDP) 2012: R177-billion 2022: R327-billion (4.93% of RSA GDP) FREE STATE GDP BREAKDOWN STATS SA, 2022 Free State Gross Domestic Product (GDP) Finance 19% Personal services 18% Trade 13% Mining 11% Manufacturing 11% Government 10% Other 18% Stats SA, 2022 GDP BY FREE STATE MUNICIPALITY Mangaung Metro 41.2% Fezile Dabi 24.8% Thabo Mofutsanyane 17.7% Lejweleputswa 13.1% Xhariep 3.2% GROSS VALUE ADDED (GVA) The community sector, which includes the government services, is generally a large contributor towards gross value added (GVA) in smaller and more rural local municipalities. When looking at the regions within the province, Mangaung Metropolitan Municipality made the largest contribution to the community services sector at 54.02% of the province. As a whole, Mangaung Metropolitan Municipality contributed R121-billion or 41.02% to the GVA of the Free State Province, making it the largest contributor to the overall GVA of the Free State Province. POPULATION 2022 2.9-million 2027 (projection) 3.0-million EMPLOYMENT A total of 754 000 people are employed in the Free State Province with 194 000 employed in the community services sector (25.7%). The trade sector with 176 000 (23.4%) is the second-largest employment sector in the province. HOUSING Housing BY by DWELLING dwelling units UNITS Housing by dwelling units Very formal 51.2% Very Formal formal 32.2% 51.2% Formal Informal 32.2% 14.1% Informal Traditional 14.1% and other 2.5% Traditional and other 2.5% Very formal dwellings: built according to approved plans, eg. houses on a separate stand, flats, townhouses, rooms in backyards that have running water and flush toilets. Formal dwellings: built according to approved plans but without running water or a flush toilet on premises. Informal dwellings: shacks in informal settlements, serviced stands or proclaimed townships, as well as shacks in backyards. Traditional dwellings: structures made of clay, mud, reeds or other locally available material. Other dwelling units: tents, caravans, etc. TOURISM Number of trips to Free State Province by purpose of trips, 2022 Visit friends, relatives 1-million Leisure, holiday 497 000 Other (medical, religious) 227 000 Business 226 000 TOTAL 1.95-MILLION

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