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Free State Business 2019 edition

Free State Business is a unique guide to business and investment in the Free State Province of South Africa. The Free State has several investment and business opportunities. The official launch of the Maluti-A-Phofung Special Economic Zone is a significant event for the economy of South Africa’s most centrally located province. Overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

Free State Business is a unique guide to business and investment in the Free State Province of South Africa. The Free State has several investment and business opportunities.
The official launch of the Maluti-A-Phofung Special Economic Zone is a significant event for the economy of South Africa’s most centrally located province. Overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

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OVERVIEW<br />

reform process in recent months. Some 6 000ha has been allocated<br />

to small-scale farmers and 500ha to farm dwellers. A land audit has<br />

been done of all land belonging to state, provincial or municipal<br />

authorities with the intention of providing land for black enterprises.<br />

The provincial government wants to see more black commercial<br />

farmers. One way of achieving this is to increase production volumes<br />

of small-scale farmers.<br />

Five agri-parks are planned in each of the <strong>Free</strong> <strong>State</strong>’s district municipalities.<br />

The concept brings together farmers, traders and agriprocessors<br />

(such as abattoirs) in convenient sites within each district<br />

municipality. Support for rural smallholders will be available in terms<br />

of equipment hire from a central source, storage facilities, packaging of<br />

produce and getting products to market. Training will also be offered.<br />

Agricultural assets<br />

Agriculture makes up 4% of the <strong>Free</strong> <strong>State</strong>’s gross domestic product,<br />

but the province’s efficient farming operations contributed a total of<br />

10% of South Africa’s agricultural output.<br />

The <strong>Free</strong> <strong>State</strong> has 32 000km² of cultivated land and a further<br />

87 000km² of grazing land and natural veld. A summer-rainfall<br />

region with a mean annual rainfall of 532mm, the <strong>Free</strong> <strong>State</strong>’s climate,<br />

soil types and topography vary greatly within the province,<br />

with plains in the west and mountains in the east. The western<br />

and southern areas are semi-desert, with some Karoo vegetation<br />

occurring in the south.<br />

The province supplies significant proportions of the nation’s sorghum<br />

(53%), sunflowers (45%), potatoes (33%), groundnuts (32%), dry<br />

beans (26%), wool (24%) and almost all of its cherries (90%). Red meat<br />

and dairy are other important products. Game hunting is a growing<br />

sector, and several large <strong>Free</strong> <strong>State</strong> farms have been converted from<br />

stock to game farms. Crop production represents about two thirds of<br />

the province’s gross agricultural income. The main crops are maize<br />

and wheat. Sunflowers, sunflower seeds, sorghum and soy beans<br />

are other major crops. The Mangaung Fresh Produce Market plays<br />

a vital role in the sector, catering as it does to householders, bulk<br />

ONLINE RESOURCES<br />

Agricultural Research Council: www.arc.agri.za<br />

Bothaville: www.bothaville.info<br />

<strong>Free</strong> <strong>State</strong> Department of Agriculture and Rural Development:<br />

www.ard.fs.gov.za<br />

Grain SA: www.grainsa.co.za<br />

National Department of Agriculture, Forestry and Fisheries:<br />

www.daff.gov.za<br />

buyers, informal traders, agents<br />

and farmers.<br />

The NAMPO Harvest Day<br />

held in Bothaville every year is<br />

one of the biggest agricultural<br />

festivals and exhibitions of its<br />

kind in the world. The annual<br />

Farmer Patent Competition<br />

is sponsored by Grain SA and<br />

Omnia, the fertiliser company.<br />

Bothaville is located in<br />

the Lejweleputswa District<br />

Municipality on the western<br />

boundary of the <strong>Free</strong> <strong>State</strong><br />

with North West. So far west is<br />

Bothaville that Senwes counts<br />

it as part of its North West<br />

region. The giant agricultural<br />

company, with its headquarters<br />

in the North West city of<br />

Klerksdorp, has three separate<br />

regions for the rest of the <strong>Free</strong><br />

<strong>State</strong>. The company deals with<br />

no less than 20% of the country’s<br />

oilseeds and grain through<br />

its 68 silos.<br />

VKB Agriculture, another of<br />

the provinces large agricultural<br />

companies, has invested heavily<br />

in the Grain Field Chicken abattoir<br />

in Reitz (together with the<br />

broiler houses in Tweeling). The<br />

IDC, which has a 23% stake in the<br />

project, intends to help develop<br />

the <strong>Free</strong> <strong>State</strong> as the poultry hub<br />

of South Africa.<br />

VKB’s headquarters are in<br />

Reitz in the north-eastern part<br />

of the province and the group<br />

has nine brands in sectors such<br />

as fuel, grains, animal feed and<br />

foods. VKB has development<br />

programmes with 51 emerging<br />

commercial farmers in the province<br />

and data on 140 developing<br />

farmers.<br />

31 FREE STATE BUSINESS <strong>2019</strong>

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