The province’s economy has grown at a slow, yet very steady pace
By: Matshidiso Selebeleng
The Free State is continuing to position itself as a prime business location, having projected steady economic growth in recent years.
Despite the poor governance performance of several local municipalities - as highlighted by the recent visit by Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) to the province - the Free State economy has shown to be on an upward trajectory largely due to the stability and resilience of its agriculture and tourism sectors.
According to the economist and deputy president of the Truckers Association of South Africa (TASA), Tony Modise, the province’s economy has shown modest albeit uneven growth recently.
"In 2022, the Free State economy grew by at least 1.5%, after it had dropped by 0.1% in 2023. This makes it one of the slowest-growing provinces in the country.
“The main cause of this weak performance is the decline in mining output, which traditionally played a major role in the province’s GDP.
"Load shedding, ageing infrastructure, and underinvestment in the mining sector have accelerated this decline. Additionally, structural challenges in logistics, inefficiencies in the public sector, and limited private sector investment are further hindering economic progress," he told Journal News.
Modise pointed out that regions such as the Mangaung Metropolitan Municipality, Lejweleputswa District Municipality, as well as local municipalities such as Masilonyana, amongst others, can potentially boost the economic standing of the province as they have vast agricultural and mining areas.
He said the latter can only happen if infrastructure and special economic zones (SEZ) projects are developed at a faster pace, while rolling out efforts to curb unemployment in the province.
“The Free State province stands at a critical inflexion point, and it is also facing structural constraints such as high unemployment and declining mining output, amongst others. It also has increasing opportunities in agriculture, renewable energy, and logistics,” he said.
