Finance MEC, Elzabe Rockman, who tabled the province’s budget for the financial year at the Xhariep Dam on Tuesday, says the rate exists irrespective of one’s education level, referring to the high number of unemployed tertiary graduates as well. The province’s total unemployment rate at the end of 2018 came in at 32,9%, higher than the 27,1% recorded nationally for the fourth quarter in 2018. Unemployment “amongst women is higher than amongst men,” according to Rockman. The provincial government is concerned not only about the Free State’s economic outlook, but also about the rising number of people living in abject poverty in the province. The province’s economy is projected to expand slightly in the 2019/20 financial year, but continues to contribute less than 10% towards South Africa’s total Gross Domestic Product figures.

While the province’s economy is expected to recover at 0,9%, Rockman acknowledges this it is not enough to address the socio-economic challenges gripping the Free State at the moment. As a result, her department, with the contribution of entities and departments, have drawn up a recovery and stimulus plan for the province. The plan includes the Maluti-A-Phofung Special Economic Zone and the revitilisation of the Phuthaditjhaba and Botshabelo industrial parks, which were highlighted by President Cyril Ramaphosa in his State of the Nation Address on February 7. Free State Premier, Sisi Ntombela, announced that the parks have created roughly 900 jobs in her State of the Province Address (SOPA), contrary to the views of the DA on the matter.

The modest towns of Botshabelo, located over 60 kms outside the Free State capital, Bloemfontein, and Phuthaditjhaba in Qwaqwa, were named out of 16 industrial parks countrywide that have undergone revitalisation to stimulate economic growth. The President said the towns have become productive again after being idle for so long. These townships and rural areas join Garankuwa, Isithebe, Komani and Seshego, among others, on the list. Ntombela further announced during her SOPA at the Vista Arena that these areas are set to undergo the next phases of revitalisation, with potential for more employment.

The Democratic Alliance (DA) leader in the province, Patricia Kopane, has been critical of the revitalisation of the industrial parks, alleging that the areas continue to be ravaged by a high unemployment rate and a lack of infrastructure. Kopane further criticised the lack of development in the areas surrounding the selected industrial parks.

OFM News