Mangaung Metro Executive Mayor Gregory Nthatisi; Minister Kgosientsho Ramokgopa;
Deputy Minister Nomalungelo Gina; Deputy Minister Alvin Botes; Deputy Minister Judith Tshabalala;
Executive Mayors who are joining us today; Members of the Free State Executive Council;
The Ambassadors and Diplomatic Corps joining us here today; Organized Business Formations;
Oragnised Labour leadership; Civil Society leadership; Investors;
Ladies and Gentlemen.
I am pleased to welcome you all, to this inaugural investment conference. We are pleased and humbled that you have responded to the call by government, to participate in this conference and thus be part of noble efforts, to put the Free State to work; invest in growth and job-creation.
Programme Director,
The Free State Provincial Government (FSPG), convenes this 2nd Free State Investment Conference, at a time when the latest statistics indicate that the South African Gross Domestic Product (GDP), declined by 1,3% in the fourth quarter (October‒December) and that unemployment, increased by 0.2 of a percentage point.
The latest Quarterly Labour Force Survey (QLFS), indicates that the number of unemployed persons increased by 46 000 in Q4 nationally. The Free State province however, recorded an unemployment decrease of 1.5 percentage points, to 37% in Q3:2023,compared to 38.5% in Q3:2023. This is promising and, points to the efficacy of the joint interventions by government and private sector.
We are here, to declare that we are determined to build a province that is driven by enterprise and innovation, to develop an economy that is diverse and resilient and prosperous, and to create companies that achieve sustained returns not only for their shareholders, but also for the workers that drive them and the communities that support them.
Our vision of doing more, together, can only be sustained by repeated spurts and business cycles of growth that ensure that the pie is grown and enlarged, put more Free Staters to work, expand our revenue base and share in our common prosperity.
This is very critical to ensure that, QLFS after QLFS, we achieve economies of scale, and not only contribute to social cohesion but, enhance the prospects of even more growth prospects, which must further lead to development.
Ladies and Gentlemen, the most pressing task in 2024 and beyond, is to set the economy on a higher path of shared growth, create more jobs, and provide opportunities for millions of South Africans. This requires levels of investment, far beyond what has been achieved in recent years. We need to mobilise domestic and international investment, while we work with greater effort to unleash the economic potential of all our people, especially youth and women, by ensuring that, they have the requisite skills sets, assets and opportunities.
Ladies and Gentlemen, the most pressing task in 2024 and beyond is to set the economy on a higher path of shared growth, to create more jobs and provide opportunities for millions of South Africans. This requires levels of investment far beyond what has been achieved in recent years. We need to mobilise domestic and international investment while we work with greater effort to unleash the economic potential of all our people especially youth and women by ensuring they have skills, assets and opportunities.
Programme Director, taking into consideration the central location of the Free State and, the fact that significant large volumes of freight are moved across the territory of the province, gives it a competitive advantage, if some value-add could be applied to freight and transport management processes. The Harrismith node on the N3 corridor between Gauteng and Kwazulu-Natal, is of great significance, while the N8 corridor is equally significant.
To take advantage of these opportunities, adequate and efficient infrastructure networks, and linkages between rail, road and air must be prioritized, while efforts to improve rural mobility, are also essential.
This essentially means that, until such time that we have harnessed alternative ways and means of moving freight in arteries of our roads network, we must pay no less attention, to road maintenance and safety, while working in concert, with our counterparts at national level, wit the view to actualising the District Development Model.
As you know, the security of energy is also a vital cog in the system, to sustain any economy. To this end, this province has positioned itself as the energy hub of the future. The Free State is emerging as a preferred destination for renewable energy projects. This is because of the good solar radiation index (for solar PV projects) and grid availability. Wind and hydro projects are also opportunities that must be explored by investors.
The discovery of natural gas deposits around a large area around Virginia and other parts of the province, represents an opportunity towards alternative energy generation. This means that the Free State has a potential to be a major contributor to the energy security efforts of the country
Our province is not insulated from the predicted job losses in the mining sector. Most Free State based gold mines, are reaching their end of life period. This will naturally lead to massive job losses but, indications are
that there are still some opportunities in gold extraction within this area for the near future.
Other mining opportunities in the Free State are in low-grade coal, diamond, uranium, and salt. Furthermore, the natural gas deposits discovered around Virginia, contain a significant amount of Helium gas. This discovery further cements the Free State as an investment destination since Helium gas, is critical for the manufacturing of micro- chips and semiconductors.
This also calls for Big, Hairy; Audacious Goals (BHAGs), of not being loathe, to contemplate the path pf investing in people and acquiring technologies that contribute to digital, green, hydrogen and circular economies. Research and Development (R&D), while it may not bear immediate fruit, will place us among economies of the future that not only boast patented knowledge but, launch us irrevocably, on the path to sustainable growth, wealth and income generation, to achieve a higher GDP, per capita.
Agriculture currently, contributes 5.1% to the Free State Gross Domestic Product, lower than the 6.3% last reached in Q3 of 2022. This province has always been known as the food basket of the country. We are firm in our view that Agriculture presents great opportunity for economic growth and job creation.
The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), maize (45%), potatoes (33%), wheat (30%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). The recent trade deal totaling R38BN, to export red meat to Saudi Arabia, after a 20 year ban, presents a great opportunity for growth in this sector.
In this regard our province must, informed by well-constructed scenario- planning and economic modelling, succeed in turning our Free State Growth and Development Plan (FSGDS), into more than a storyline. It must have measurable, time-bound and realistic goals and targets, that take organised labour and business and civil society broadly on board, on the implications and ramifications of every milestone mapped and attained, as well as setbacks experienced.
Programme Director, industrializing the Free State economy through manufacturing remains our focus, as we drive the value chains transformation approach, towards economic growth that ensures transformation strides in ownership, management, control, employment
equity, skills development, preferential procurement, enterprise development and economic development.
To this end, the Free State Development Corporation (FDC) and Maluti- a-Phofung Special Economic Zone (MaPSEZ), will continue to play a pivotal role, as a trade and investment agency of the province, by using the industrial park estates and associated incentives, to attract investors to set-up shop in the province.
Our investment and focus on economic infrastructure revitalization, will ensure that the Free State is turned into a construction site. We will do this, so as to enable domestic and foreign investors, to invest with confidence in our province.
To this end, we will not tire in our resolve and determination to ensure that, municipalities continue to be supported to possess social and economic infrastructure, that seamlessly facilitates growth and investment.
Every single challenge in this sector, will be examined and x-rayed, to allow for conducive conditions to exist, to allow for enterprise development and economic development, virtually for any potential investor: from collaborating with national government to ensure energy security, to enhancing service delivery and confronting crime, by building safer, happier communities.
Conclusion
We therefore hope and trust that these endeavors will, with your collaboration and business nationally and globally, bear the fruits that will see our economy attract much needed investment and create much needed jobs.
Some may unfairly castigate us for what they call hide-bound ideologies that stifle and stunt economic growth and yet, data available points to a government that is solution-oriented and willing to talk through and smooth over, quite challenging and complex aspects of growth trajectory.
Yet others, may dismiss our democracy as a counter-productive abode of the hadeda bird that is loud and noisy, while others, quietly express fear of the onset of a vulture culture whereby, everyone is for themselves, while the devil takes the hindmost.
In defiance of the pessimistic perspective, we remain sanguine and forward-looking. We represent the behaviour of the weaver bird that patiently and painstakingly builds its nest and razes it occasionally, if only to perfect it,if it is not satisfied with its feel and look.
We say that as we convene here, we are neither naïve, nor starry-eyed. We are the children of Mahabane, Moroka, Maphikela, Motshabi, Mohlakoana,Setai, Direko, and many more. We are made of a sterner stuff.
We are determined to defend our democracy and advance our freedom; build an ethical and capable state, by systematically and systemically, punishing malfeasance and corruption.
Perhaps we must remind all and sundry that, the Free State is open for business and the fact that, as we recognise injustices of our past and strive to remain on track to ensure transformation, we plant the seeds of equity, stability and shared prosperity.
Thus, we echo the sentiments of leader of the governing party --- President Cyril Ramaphosa --- who recognised setbacks on the occasion of the launch of the Manifesto of the governing party over the weekend and yet, remained sanguine about the future when he said:
“Our confidence rests on the fact that:
*We’ve achieved the impossible together.*
*Our biggest victories we’ve won together.*
*Our deepest sorrows we’ve felt together.*
*Our biggest strides, made together.*
*The biggest odds, we’ve defied together.*
*And so today we can say with certainty:*
*We will do better, we will do more, and we will do it faster. Together."
I thank you.
