The Matjhabeng Investment Summit, organized by the Free State Department of Economic, Small Business Development, Tourism, and Environmental Affairs (DESTEA), is set to boost the region’s economic growth. This summit complements the Free State Investment Conference, which aims to strengthen the province’s potential to attract significant investments.
South African Economy
The South African economy has shown signs of recovery, with a 0.4% expansion in Q1 2023. The manufacturing and finance sectors have been significant growth drivers while the demand side has been boosted by exports, government, and investment spending.
Agriculture Sector
The Free State Province’s agriculture sector, a cornerstone of its economy, has experienced a 12.3% slump in production due to waning field crop and animal product outputs. This pressing issue must be addressed to revive the sector.
Projected GDP Growth
The Free State Province is expected to achieve an average annual GDP growth rate of 1.45% from 2021 to 2026. This growth is expected to be propelled by the finance sector, with an average annual expansion of 2.98%, and the transport sector, with an average annual growth rate of 2.57%.
Trade Relations
Major export destinations from the Free State Province include the Southern African Development Community (SADC) and the Asia-Pacific Economic Cooperation (APEC), while its primary imports come from the APEC economies and the European Union (EU). These trade relations must be strengthened to improve the regional economy.
Investment Opportunities
The Free State Province is raising its hand to attract investments by emphasizing its abundant natural resources and strategic location at the convergence of major logistics arterials such as the N1, N6, N5, N8, and N3.
Matjhabeng’s recent discovery of natural gas, known as the Virginia Gas Project, opens up fresh investment opportunities and job creation possibilities in downstream economies. The Free State Department is working closely with Matjhabeng Local Municipality to establish an Industrial Development Zone (IDZ) or Special Economic Zone (SEZ) to attract additional investments and promote local beneficiation.
Mining, renewable energy projects, agro-processing activities, and tourism all have the potential to boost the Free State Province’s economy. The annual National Maize Producers Organization (NAMPO) maize festival, held in Bothaville, is a testament to the region’s agricultural prowess.
Investment Facilitation
The Free State Development Corporation (FDC) will continue playing a pivotal role in facilitating trade and investment in the province. With three Industrial Parks and one Special Economic Zone in Harrismith – Maluti A Phofung, these estates will attract investors to establish their businesses in the region.
To ensure a conducive investment environment, the DESTEA has finalized the Municipality Investment Incentives Guideline, aimed at assisting municipalities to attract investors through reduced red-tape, cost of doing business, and improved environmental compliance. This guideline will be implemented across all municipalities to create a better life for the Free State Province’s residents.
The Matjhabeng Investment Summit is a crucial first step in securing the Free State Province’s economic future by attracting new investment opportunities. With abundant resources, a strategic location, and a commitment to creating a conducive environment, the Free State Province stands as an ideal investment destination at the heart of South Africa.
