South African Business is an annual guide to business and investment in South Africa. Published by Global Africa Network Media in Cape Town, the 2016 edition is in its fourth year of publication.
The publication provides up-to-date information and analyses of the country's key economic sectors, as well as detailed economic overviews of each of the nine provinces in South Africa.
OVERVIEW Regional
OVERVIEW Regional overview: Free State The Free State is one of the nine provinces of South Africa and is centrally located on the flat, boundless plains that dominate the area. It represents 10.6% of the total land area of the country and boasts wide horizons, blue skies, mountains and goldfields. The province covers an area of 129 825 km 2 . The Free State province borders most of the other provinces, with the exceptions being Limpopo and the Western Cape. To the east, it has an international boundary with Lesotho, nestling in the hollow of its beanlike shape, and the escarpment separates it from the Eastern Cape and KwaZulu-Natal. The Orange and Vaal rivers form the southern, western and most of the northern border and the last section of the north-eastern boundary is formed by the Klip River. This centrally located province uses its position to its advantage. The varied economy currently has 3.2-million hectares of cultivated land, although the services sector is the biggest economic contributor. Economy Mining and agriculture were for many decades the bedrock of the Free State economy. The north-western part of the province sits on top of a rich gold-bearing reef more than 400km long, known as the goldfields region. South Africa is the world’s largest gold producer, and the country’s largest gold-mining complex is Free State Consolidated SOUTH AFRICAN BUSINESS 2016 162
Free State sector contribution. SOURCE: FREE STATE DEPARTMENT OF CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS. OVERVIEW PERSONAL & GENERAL GOVERNMENT SERVICES 28% FINANCE, REAL ESTATE & BUSINESS SERVICES 20% TRANSPORT, STORAGE & COMMUNICATION 9% WHOLESALE, RETAIL, MOTOR TRADE, CATERING & ACCOMMODATION 11% CONSTRUCTION 2% ELECTRICITY, GAS & WATER 3% MANUFACTURING 14% MINING & QUARRYING 9% AGRICULTURE, FORESTRY & FISHING 4% Goldfields, with an area of 330km 2 . Agriculture Large percentages of South Africa’s agricultural production, particularly grains, originate in the Free State. More than half the nation’s sorghum, nearly half the sunflower and more than 30% of all wheat, maize, potatoes and groundnuts come from the fertile plains of the western and northern Free State, while the valleys of the east produce almost all of South Africa’s cherries and asparagus. Livestock and flowers are other important agricultural products. Services sector Like the rest of the country, the Free State is experiencing considerable growth in the services sector. BPO and call centres are flourishing in the province. Bloemfontein, the main city for economic activity, is at the core for Telkom’s switching centres. Various call centres are located in the city and have created many employment opportunities in the process. The geographical position of the province makes it a key factor for being a transport and logistics hub in South Africa. The resources available for use in the Free State has led to growth in other sectors such as agriculture, manufacturing, mining and tourism. This puts the transport sector in a favourable position. Economic future International investors are focused on South Africa as a buzz has been created around the energy sector. Sasolburg, an important petrochemical site in the Free State, recently fired up a new power plant running solely on gas. This power plant is the largest of its kind in Africa. The plant produces 140MW of power for the usage of Sasol’s chemical factory adjacent to the site, and will also be fed into the national grid. Eskom has a few projects lined up that will feed the national grid. The Ingula scheme, bordering KwaZulu-Natal, has begun construction. Two dams will be connected via underground turbines just short of five kilometres long. The project will eventually deliver 1 332MW of hydroelectricity. Eskom has set aside R300-billion for infrastructure development across the country for the next years to 2018. Of that amount, Ingula has used 58% of the allocated R25.9-billion. FREE STATE www.freestateonline.fs.gov.za Capital Population Area Premier Bloemfontein 2 817 900 (2015) 129 825 km 2 Ace Magashule (ANC) Languages Afrikaans, English, Sotho, Tswana 163 SOUTH AFRICAN BUSINESS 2016
