This was revealed by Free State Finance MEC, Gadija Brown as she tabled her 2021/22 adjustment budget before the provincial legislature on Friday, 26 November.

Brown says the province has been in recession since 2018, a matter of concern for the provincial government.

The Covid-19 pandemic only exacerbated the situation, resulting in the Free State’s economy contracting by – 7,4% interestingly crippling all sectors apart from Agriculture.

Brown elaborates on the number of jobs lost during this period.

“Job loss is the most severe and immediate impact of the Covid-19 crisis. Hon Speaker, approximately 40 000 jobs were lost last year in the province. At the end of 2020, the unemployment rate estimated at 33,4%, which was the third highest in the country behind Gauteng and the Eastern Cape with 34,1% and 47,9% respectively.

At present the central South African province’s unemployment rate is 36,5% in the second quarter of this financial year.

Despite the news, there are some interesting developments on the horizon in the province that could boost economic growth.

Brown says renewable energy giant, Renergen, has invested in the prospect of natural gas and helium in Virginia.

The provincial government is of the view that the investment is great news for Matjhabeng and the Free State as a whole.

Additionally Boshof will host 6 of the 25 news solar power farms in the country.

OFM News