Free State Economy Beats Pre-COVID Levels

Bloemfontein – The Free State economy has bounced back stronger than before the coronavirus hit, with its gross domestic product now higher than in 2019. In a fresh opinion piece, public sector economist and social activist Tiisetso Makhele calls this a golden chance to push for growth led by factories and industries. He points to the latest numbers from Statistics South Africa, showing the province’s output grew by 0.5 percent last year to hit R223 293 million – the best since 2014. This puts the Free State as the fourth fastest-growing province, behind Limpopo, Gauteng, and the Western Cape. Families across the Free State, hit hard by job losses and tough times during the pandemic, can take heart from this recovery, but Makhele warns it is not enough without big changes to create more work and cut poverty. As South Africa looks to build back better after the virus wrecked lives and businesses, the Free State could lead the way with smart plans to boost factories and jobs.
Makhele’s views come at a key moment, with the province facing high joblessness and uneven growth. While the numbers look good on paper, real-life issues like sky-high unemployment – sitting at around 38 percent in recent quarters – show the need for action. The economist stresses that teamwork between government, businesses, and communities has driven this comeback, but now is the time to focus on making things in factories to keep the momentum going.
How the Free State Economy Fought Back from COVID
The coronavirus shook the world, and the Free State felt it hard. Before the virus, in 2019, the province’s gross domestic product stood at R221 439 million when measured in steady 2015 prices. Then came the lockdowns, and output dropped by nearly 6 percent to R208 511 million in 2020. Businesses shut, people lost jobs, and families struggled to make ends meet.
But things turned around. According to Statistics South Africa’s Provincial GDP Report (2024), released on 18 September 2025, the Free State’s economy, compared to 2023, grew by 0.5 percent to R223 293, which was the highest GDP since 2014. This means the province not only got back to where it was before the virus but went a bit further. Makhele calls this remarkable and worth cheering, saying it shows what happens when everyone pulls together – from government offices to factories and farms.
The recovery ties into the bigger picture across South Africa. The country saw its economy shrink by 6.3 percent in 2020, but it rebounded with growth of 4.7 percent in 2021 and kept climbing, though slower lately. In the Free State, efforts like support for small businesses and farming helped steady the ship. For example, the province rolled out plans to boost tourism and mining after the lockdowns, drawing in visitors and keeping key sectors alive.
Key Numbers Showing the Province’s Progress
Makhele breaks down the stats to show why this matters. The gross domestic product is a way to measure how much value the province creates from making and selling goods and services. It tells us about the economy’s size and health.
From these figures, the Free State now adds 5.0 percent to the whole country’s output, up a touch from 4.9 percent before. That puts it ahead of provinces like the Eastern Cape and Northern Cape in share. When it comes to growth speed, the Free State sits fourth, with Limpopo at 0.9 percent, Gauteng at 0.8 percent, and the Western Cape at 0.7 percent. Three other provinces actually shrank last year, making the Free State’s gain stand out more.
Another bright spot is income per person, or gross domestic product per capita. This divides the total output by the number of people and shows average wealth. In 2024, the Free State hit R73 885 per person – the third highest after Gauteng and the Western Cape. Even better, this figure grew faster than the national average from 2013 to 2024, meaning folks here saw their living standards rise quicker than elsewhere.
But the province still lags in some areas. Its population of about 3 million relies heavily on government jobs and services, with farming and mining playing big roles too. Recent data shows the economy added around 10,000 jobs in the last quarter, but that is not enough to dent the high jobless rate.
Hidden Problems Behind the Good News
Makhele is clear-eyed about the downsides. Yes, the 0.5 percent growth is a step up, but it falls short of what is needed. The Free State Growth and Development Strategy from 2013 says the province must hit at least 5.0 percent growth to really change lives, especially for black and African communities hit hardest by poverty.
Income per person looks okay, but it hides big gaps. It does not show how wealth is split unevenly, often along race and gender lines. Black people, Africans, and women – particularly African women – still earn less than white men on average. This inequality holds back growth, as basic economics tells us.
Then there are the main industries. Finance makes up 18 percent of the economy, and personal services 16 percent. But manufacturing – key for linking to other sectors and creating jobs – only adds 11 percent, mostly thanks to Sasol’s big plant in Fezile Dabi. Compare that to Gauteng and the Western Cape, where factories are top drivers. This setup leaves the Free State open to shocks, like falling gold prices or dry spells hitting farms.
Unemployment stays a sore point, with over a third of working-age people without jobs. Youth joblessness is even worse, pushing many into informal work or giving up. The province also deals with slow infrastructure fixes, like bad roads and water shortages, which scare off investors.
Steps to Build a Stronger Future Through Industries
Makhele lays out clear fixes to turn recovery into real progress. First, tackle income gaps. While grants help, they create reliance. Instead, give easier access to land for middle earners to build homes and feel secure. Speed up cheap loans for black businesses, factories, groups, and co-ops. He hopes the new Transformation Fund will step up here.
Second, grow real industries like mining, farming, and factories. These have shrunk or stayed small, hurting long-term growth. Call for a team-up between government, communities, and companies to support these sectors. Push for more factories to turn raw goods into finished products right here, creating jobs and keeping money local.
Third, get clear on policies. The province leans too much on services like finance, which will not last forever. Lift up manufacturing through better teamwork across government levels and with private players. Aim for a shared goal to make the Free State a hub for making things.
These ideas fit with national plans, like the Economic Reconstruction and Recovery Plan from 2020, which focuses on jobs, green energy, and digital growth. In the Free State, moves like upgrading industrial parks and backing small factories could spark this shift.
Makhele wraps up by saying this moment calls for bold moves. With the economy back on its feet, now is the time to drive industries that create lasting jobs and fairness. For families dreaming of better days, this could mean more chances to work, earn, and thrive in a province ready to lead.

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Free State Economy Beats Pre-COVID Levels, Now Time for Strong Industrial Drive – Makhele

Free State Economy Beats Pre-COVID Levels

centralnewsza #news #politics #ngwathe #feziledabi #freestate

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