President Cyril Ramaphosa has officially launched the Free State Catalytic Investment and Industrialisation Project, unveiling three investment initiatives worth more than R120 billion aimed at reversing decades of deindustrialisation in South Africa’s central province.
Speaking at the Phuthaditjhaba Multipurpose Centre in QwaQwa on Friday, Ramaphosa announced the projects developed with Chinese investors Joy Long-YJC, which will focus on renewable energy, electric vehicle manufacturing, and agricultural processing in the Maluti-a-Phofung Local Municipality .
THREE FLAGSHIP PROJECTS
The largest initiative is the YJC Renewable Energy Project, representing an investment of approximately R100 billion with the potential to create 6,500 jobs .
The Joylong Automotive Manufacturing Project, valued at approximately R5.5 billion, is expected to create 1,500 direct jobs over five years and produce up to 8,000 electric vehicles annually.
The Walk of Life Apple Juice Concentrate Plant, representing approximately R330 million in investment, is expected to create 100 permanent jobs and approximately 600 seasonal employment opportunities.
“This project will mobilise automotive assembly, electric mobility technologies, components, energy systems, logistics, skills and local suppliers,” the Presidency said in a statement ahead of the launch.
REVIVING A DECLINING INDUSTRIAL HEARTLAND
The launch comes as the Free State grapples with an unemployment rate of 37.8%, the second-highest in South Africa after the Eastern Cape, with youth unemployment reaching a staggering 63.6%.
Until the early 2000s, the Free State was a manufacturing hub. Ramaphosa acknowledged that deteriorating municipal services and infrastructure had driven companies to close or relocate to other provinces.
“The Free State Growth and Development Strategy aims to reverse that trend and provide a clear roadmap for the reindustrialisation of the province,” Ramaphosa said.
The President highlighted the strategic location of the Maluti-a-Phofung Special Economic Zone, which has sites for 65 factories, of which 58% are occupied. The zone sits along key freight and transport corridors, with easy access to six other provinces and neighbouring countries.
INFRASTRUCTURE AND SKILLS AS FOUNDATIONS
Ramaphosa emphasised that reliable infrastructure and services are essential to attracting and retaining investment.
“To attract 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.
The programme also aims to connect new investments with skills training. During the ceremony, 130 trainees who had received instruction in plumbing, construction, environmental practices, and electrical systems management were recognised .
“I ask that all you learners please stand up and show us your certificates so we can acknowledge you and congratulate you,” Ramaphosa said.
FROM ANNOUNCEMENT TO EXECUTION
The President cautioned that investment announcements alone would not be sufficient, stating that government would monitor progress over the next 30, 60 and 90 days to identify and resolve barriers .
“Where there are barriers, we must identify them early and resolve them through the proper channels,” he said.
He also called on local businesses to prepare for opportunities in the new supply chains, particularly in components, materials, packaging, maintenance, and transportation services.
“These projects demonstrate the type of economic activity we need to build: investment that creates productive capacity, develops local value chains, strengthens exports and expands employment,” Ramaphosa said.