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Free State Industrial Area to be reformed to former glory

───   TSHEHLA KOTELI 08:24 Mon, 24 Apr 2023

Free State Industrial Area to be reformed to former glory | News Article
PHOTO: Supplied

A commitment has been made to reform factories in the Phuthaditjhaba Industrial Park with the aim of fighting the high rate of unemployment in the area.

The MEC responsible for the Department of Economic, Small Business Development, Tourism and Environmental Affairs (Destea), Thabo Meeko, announced that the 10 factories based in Qwaqwa, in the Free State, have the potential to create over 500 new jobs. The factories in question already have a number of new clothing and textile industrialists who have applied to locate in the Industrial Park. “The provision of both financial and non-financial support to SMMEs by the department remains key towards achieving economic growth, transformation, and job creation,” he added.

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The Free State Development Cooperation (FDC) spent over R2.7 million in rental incentives at its Industrial Parks and over 25 SMMEs benefitted from this incentive. Meeko explained that the department has concluded a partnership with Mangaung Metropolitan Municipality, Letsatsi Power Project, and the Department of Small Business Development to establish an SMME Hub which will benefit 16 enterprises in Ward 6 in Mangaung. “The construction of this facility is well under way and we estimate that it will be completed in the current financial year,” said Meeko.

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While outlining his 2023/24 budget speech, he said the FDC has been working with various public and private partners on training youth on various skills relevant for the economy as an attempt to fight the high rate of unemployment. “3 520 participants have benefitted from a total investment of R59 million. In the next two years, the FDC, together with its partners, will roll out 12-month skills programmes focusing on areas with high employment absorption potential. The estimated investment in these programmes over the next five years is R500 million.”

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Back to Qwaqwa, during the past financial year, the Maluting-a-Phofung Special Economic Zone (MAPSEZ) has created a lucrative investment pipeline of 12 investors in various sectors. It was explained that the pipeline has an estimated value of R2.8 billion and includes two investors whose applications are at an advanced stage, namely, Dalonet Textiles and Buntu Foods. “To date the MAPSEZ has created 167 jobs, and anticipates an additional 120 in the short term. Despite the jobs reported above, there are also 1 110 jobs created by the existing FDC tenants who will be migrate to the SEZ soon.”

The Democratic Alliance (DA) in the Mangaung Metropolitan Municipality has slammed those responsible for keeping the industrial park in Botshabelo operating. The party has alleged that during their oversight visit, they noticed that many of the industries have closed – and this could mean that many people have lost their jobs.

“This area has now turned into a crime hotspot, creating safety concerns for the community. Residents who commute through the area live in fear of being assaulted. The DA will urge the SAPS to assist the community by increasing visibility in the area. The safety of the community should be prioritised. In addition, the community should also be encouraged to report any suspicious activities or individuals to the authorities. This will help in identifying and apprehending potential criminals.”

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