The decision should not be viewed as mere corporate restructuring but rather as a major economic shock with far-reaching implications, said University of the Free State economics and finance expert Dr Eugene Buthelezi. The closure could cost hundreds of jobs and indirectly affect thousands more through disruptions to the wider supply chain.

“For everyone (who) will be losing their job, two or three people will be affected in the supply chain. Yes, for now, 680 may be affected directly, but indirectly, 1,380 jobs may be affected.”

Long-term economic deterioration

The immediate fallout, he said, would be visible across households and local businesses. “In the short term, the effect is very clear. Households will lose their income, consumer spending will be low, and there will be a strain on small businesses.

“For a province that is experiencing a very high level of unemployment and which recorded 38.5% in the second quarter of 2025, this is very concerning.”

The Free State, already grappling with structural unemployment and slow industrial growth, faces the risk of long-term economic deterioration if no interventions are made. The exit of a major employer like Coca-Cola could weaken Bloemfontein’s industrial base and investor confidence, Buthelezi warned.

“In the long run, without any other employer stepping in, Bloemfontein risks structural unemployment, further weakening the industrial base. Skills will be lost, and the city will become less attractive to new investors.”

Beyond job losses, the closure could also impact municipal revenue collection, especially from business rates and service charges, at a time when demand for social assistance is expected to rise. “Local government risks losing revenue through rates and services at the very same time [it will] have challenges of rising social support,” he said.

While accessing unemployment insurance fund (UIF) benefits could offer temporary relief for affected workers, Buthelezi insisted that this would not be sufficient. “As we know, UIF is not enough. 

Clear economic strategy

“We really need targeted retraining, reskilling programs that actually link to real opportunities in sectors that have potential areas such as agro-processing, renewable energy, and other logistics sectors. If training is not aligned with the market demand, we risk people being left behind.”

He urged Coca-Cola to act responsibly during the process, ensuring transparency and adequate retrenchment packages for affected employees. Buthelezi called on the provincial government to develop a clear and robust economic strategy that not only attracts new industries but also strengthens small, medium, and micro enterprises (SMMEs).

“It’s a crisis and a wake-up call for the province, as a new, clear strategy that will attract industries is needed to diversify the economy and also support small, medium, and micro enterprises, which includes better infrastructure, less red tape for investors, and strong public–private partnerships.”

In a statement, Coca-Cola Beverages South Africa said it intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may, unfortunately, result in job losses. 

“We have started a consultation process with unions and non-unionised employees who may be impacted. Our priority is to support affected colleagues with fairness, transparency, and compassion during this process.”

CCBSA also stated that consultations are underway, and no final decision has been made.

OFM News/Kekeletso Mosebetsi mvh