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Free State Business 2023

The 2023 edition of Free State Business is the 13th issue of this successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State. Sasol, one of the biggest industrial enterprises in the province, has announced that it may have found a way to keep running the Natref refinery far into the future, because of new and cleaner technologies that it is investigating. Gold miners Harmony and Sibanye-Stillwater are prospecting for new reefs. And the provincial tourism authorities are putting their minds to creating new ways of attracting new local tourists to various eco-tourism products. All of these news items and more are contained in the sector overviews that outline the characteristics of the main economic sectors of the province, and report on the latest news in those sectors as well. One of the most active sectors is a new one – natural gas and helium, which is being vigorously pursued by Renergen through its Virginia Gas Project. Significant investments are being attracted into the newly-established Maluti-A-Phofung Special Economic Zone (MAP SEZ) in the northern part of the province and a steel mill is under construction at the Botshabelo Industrial Park east of Bloemfontein. Special features on investment incentives and starting a business are included in this edition.

The 2023 edition of Free State Business is the 13th issue of this successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State.
Sasol, one of the biggest industrial enterprises in the province, has announced that it may have found a way to keep running the Natref refinery far into the future, because of new and cleaner technologies that it is investigating. Gold miners Harmony and Sibanye-Stillwater are prospecting for new reefs. And the provincial tourism authorities are putting their minds to creating new ways of attracting new local tourists to various eco-tourism products.
All of these news items and more are contained in the sector overviews that outline the characteristics of the main economic sectors of the province, and report on the latest news in those sectors as well. One of the most active sectors is a new one – natural gas and helium, which is being vigorously pursued by Renergen through its Virginia Gas Project. Significant investments are being attracted into the newly-established Maluti-A-Phofung Special Economic Zone (MAP SEZ) in the northern part of the province and a steel mill is under construction at the Botshabelo Industrial Park east of Bloemfontein. Special features on investment incentives and starting a business are included in this edition.

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OVERVIEW<br />

Agroprocessing is an important part of the <strong>Free</strong> <strong>State</strong> economy.<br />

The production lines of the Bethlehem Sasko Mill process about<br />

144 tons of wheat every year. Credit: SASKO<br />

As part of the agri-parks programme a warehouse is under<br />

construction at Springfontein and the Thaba Nchu abattoir is being<br />

upgraded. In Sediba, Farmer Production Support Units supplied a<br />

tractor and implements to participants.<br />

Private companies<br />

The SASKO Bethlehem Mill has a total of 96 employees and mills 144 000<br />

tons of wheat every year. Bethlehem was chosen because of its proximity<br />

to excellent wheat-producing areas and for its strategic location in terms<br />

of logistics: the busy N3 freeway is just 90km away.<br />

Transnet Freight Rail (TFR) has plans to double volumes of grain<br />

transported out of its Bethlehem facility. VKB Agriculture is one of the<br />

companies that will benefit if TFR can increase its capacity to 550 000<br />

tons for the season, as it plans.<br />

VKB is already a diverse group, with the capacity to produce<br />

soybean meal and soybean cake and flour from its plants, mills<br />

and factories. Grain Field Chickens, a large abattoir in Reitz, is one<br />

of the company’s biggest facilities in the province. The Industrial<br />

Development Corporation (IDC), which has a 23% stake in the project,<br />

aims to help develop the <strong>Free</strong> <strong>State</strong> as the poultry hub of South Africa.<br />

VKB has six agro-processing companies including VKB Flour Mills and<br />

<strong>Free</strong> <strong>State</strong> Oil and is active in auctioning, storage, packaging and fuel<br />

sales, among other activities. VKB’s headquarters are in Reitz in the<br />

eastern part of the province and the group is one of the province’s<br />

largest employers.<br />

The Imbani Homsek Group is an integrated dairy-products<br />

producer with one of the biggest Ayrshire herds in the world. The<br />

head office of Country Bird Holdings is in Bloemfontein: its brands<br />

are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird<br />

Logistics controls 45 chilled and frozen vans.<br />

ONLINE RESOURCES<br />

Agricultural Research Council: www.arc.agri.za<br />

Bothaville: www.bothaville.info<br />

<strong>Free</strong> <strong>State</strong> Department of Agriculture and Rural Development:<br />

www.ard.fs.gov.za<br />

Grain SA: www.grainsa.co.za<br />

Clover has three factories<br />

in the <strong>Free</strong> <strong>State</strong>: Bethlehem<br />

(milk powder, whey mixtures<br />

and creamers); Frankfort (butter,<br />

the largest such factory in<br />

the country, where ghee and<br />

roller dried milk powder is also<br />

made) and in Heilbron (whey,<br />

buttermilk, condensed milk and<br />

packaging).<br />

Bothaville hosts the country’s<br />

largest agricultural festival,<br />

NAMPO Harvest Day. Bothaville<br />

falls under the North West in<br />

the organisational chart of giant<br />

agricultural company Senwes,<br />

which has its headquarters in<br />

Klerksdorp. The rest of the <strong>Free</strong><br />

<strong>State</strong> is divided into three regions<br />

by Senwes, which deals with about<br />

20% of the country’s oilseeds and<br />

grain through its 68 silos.<br />

The province supplies<br />

significant proportions of<br />

the nation’s sorghum (53%),<br />

sunflowers (45%), potatoes<br />

(33%), groundnuts (32%), dry<br />

beans (26%), wool (24%) and<br />

almost all of its cherries (90%).<br />

Red meat and dairy are other<br />

important products. Game<br />

hunting is a significant sector,<br />

and several large <strong>Free</strong> <strong>State</strong> farms<br />

have been converted from stock<br />

to game farms.<br />

Crop production represents<br />

about two-thirds of the<br />

province’s gross agricultural<br />

income. The main crops are<br />

maize and wheat. Sunflowers,<br />

sunflower seeds, sorghum<br />

and soy beans are other major<br />

crops. The Mangaung Fresh<br />

Produce Market plays a vital<br />

role in the sector, catering as<br />

it does to householders, bulk<br />

buyers, informal traders, agents<br />

and farmers. ■<br />

29<br />

FREE STATE BUSINESS <strong>2023</strong>

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