Ramaphosa pins R120bn and 8 200 jobs on a Free State that lost its factories

President Cyril Ramaphosa has announced three investment initiatives worth more than R120 billion for the Free State, aimed at industrialisation, manufacturing and employment in a province he says was a manufacturing hub until the early 2000s.

The projects were announced at the launch of the Free State Catalytic Investment and Industrialisation Programme at the Phuthaditjhaba Multipurpose Centre in QwaQwa on Friday, according to SAnews, the South African Government News Agency.

The largest is the proposed YJC renewable energy project, which Ramaphosa said represents an investment of approximately R100 billion and has the potential to create 6 500 jobs.

The planned Joylong Automotive Manufacturing project is valued at approximately R5.5 billion. It is expected to create 1 500 direct jobs over five years and to produce up to 8 000 electric vehicles a year.

The third, the Walk of Life Apple Juice Concentrate Plant, carries an investment of approximately R330 million and is expected to create 100 permanent jobs and about 600 seasonal employment opportunities.

Ramaphosa said the projects show the kind of economic activity the country needs, describing investment that creates productive capacity, develops local value chains, strengthens exports and expands employment.

He placed the announcement against a decline he acknowledged directly. The Free State, he said, was a manufacturing hub until the early 2000s, and deteriorating municipal services and infrastructure contributed to companies closing or relocating to other provinces. The Free State Growth and Development Strategy is intended to reverse that, with the Maluti-a-Phofung Special Economic Zone at its centre.

The zone has sites for 65 factories, of which 58% are occupied, the President said. Industrial development, he stressed, depends on reliable infrastructure and effective municipal services to attract and retain investors.

“To attract the investment to this area, government is committed to providing reliable electricity and water provision, functioning roads, safe industrial premises, efficient approvals and accountable project management,” he said. “Good and reliable infrastructure attracts investors. The quality of municipal services influences where companies invest.”

He pointed to the province’s central location, its connections to transport and logistics networks, and its agricultural producers and markets in South Africa and beyond.

On agriculture, Ramaphosa said the province needs to move beyond primary production towards agro-processing, beneficiation, packaging, manufacturing and wider market access. The Walk of Life plant, he said, shows how production can be linked to industrial processing and value addition, while the electric vehicle project could place the Free State in the green economy and new-energy value chain.

He said the investments should benefit local businesses, including small and medium-sized enterprises that could supply components, materials, packaging, maintenance, security, cleaning, transport and professional services. “A factory depends on far more than its production line. It needs to be part of a broader value chain,” he said.

The President acknowledged 130 learners who had received skills training and were progressing towards placement. They were trained by the Free State Development Corporation, the Unemployment Insurance Fund and Eskom in plumbing, environmental practice, construction road work, food and beverage, first aid and electrical systems management.

He called for stronger partnerships between government, industry, training institutions and investors to connect skills development with economic participation and decent work. “Institutions and employers must help young people connect training to further experience and, where opportunities become available, to decent work,” he said.

On delivery, Ramaphosa said success would depend on what happens beyond the launch. The provincial government has committed to tracking announced actions over the next 30, 60 and 90 days. He called on municipalities to provide dependable services and responsive planning, on investors to honour their commitments, and on communities to be meaningfully involved. Development finance institutions and specialised agencies, he said, would need to leverage private investment through the effective deployment of public resources.

“The measure of today’s success will be what happens after the banners come down,” he said. “Our ambition is to build a Free State that makes more of what it uses, processes more of what it grows and creates more paths into productive work.”

The announcement as published by SAnews is a summary of the launch rather than a full record of the proceedings. No project timelines, funding agreements or named investors beyond the three projects were disclosed in it.

Source: SAnews (South African Government News Agency), President announces R120 billion Free State investment initiative, https://www.sanews.gov.za/south-africa/president-announces-r120-billion-free-state-investment-initiative