South African Business 2018 edition

A REGIONAL OVERVIEW OF THE
FREE STATE
The Free State shares borders with six other provinces
and the Mountain Kingdom of Lesotho.
A summer-rainfall region with a mean annual
rainfall of 532mm, the Free State’s climate,
soil types and topography vary greatly within the
province, with plains in the west and mountains in
the east. The western and southern areas are semidesert,
with some Karoo vegetation occurring in the
south. The Orange and Vaal rivers define the southern,
western and northern borders of the Free State.
The Free State produces significant proportions
of South Africa’s wheat (30%), sunflowers (45%) and
maize (45%).
Five major national highways intersect the centrally
located province which is also well served by
rail and air links. The N8 highway extends westwards
to the Northern Cape capital of Kimberley, and several
projects are planned to leverage the advantages
of this busy route.
The Maluti-A-Phofung Special Economic Zone
(SEZ) takes advantage of the strategic position
Harrismith holds in the Free State’s north-eastern
corner. The N3 highway carries large volumes of
cargo between Gauteng and the ports of KwaZulu-
Natal so it is logical that the first focus of this SEZ is
logistics. Another logistics axis extends between
Harrismith and Bloemfontein for the delivery of
products by rail and road.
Special rules apply within an SEZ, including
more liberal taxation for companies that invest in
the zone (15% corporate tax applies, as opposed to
28%). Other benefits include a building allowance,
employment incentives and the fact that an SEZ is
a customs-controlled area.
The Bram Fischer International Airport in the
provincial capital city of Bloemfontein is the site of
a multi-phase industrial and commercial development.
Two leading universities (the University of Free
State and the Central University of Technology) have
several campuses across the province.
Key sectors
An important pillar of the economy of the Free State,
the chemicals and fuels hub at Sasolburg, is modernising
and expanding. International fuel, gas and
chemicals company Sasol regularly invests in new
technologies and in expanding production of its
various products.
SOUTH AFRICAN BUSINESS 2018
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