By This sluggish growth has limited opportunities for inclusive economic participation, resulting in insufficient job creation and rising costs of living for households across the province.
The economy of the Free State province has taken a nose dive over the past three years, added to that, the provinces is experiencing a persistent high rate of unemployment and sluggish growth in some of the sectors.
According to the MEC for Finance in the province, Mr Ketso Makume, though the economy is limping, it has shown some resilience over the past three years. He said during his budget adjustment speech on 2 December 2025, the resilience is not enough as it does not translate into the level of growth expected or required to meaningfully reduce the high levels of unemployment in the province.
The Free State with its great potential; is facing major challenges in growing its economy. According to Makume, real GDP growth in the Free State was approximately 2.0 per cent in 2022, before declining sharply to a mere 0.2 per cent in 2023. Current projections indicate only a modest recovery, with growth forecast at 0.5 per cent in 2024. He said this subdued performance underscores the fragile nature of the province’s economic recovery.
Agriculture has been the star performer in the province being the largest contributor towards the Free State’s GDP.
“Agriculture continues to play a critical role in the provincial economy, contributing about 6 per cent of GDP in 2024. While the sector remains important, our maturing mining industry is facing significant structural and operational challenges, which further constrain overall economic performance.
The services sector, which accounts for approximately 60 per cent of the Free State’s GDP, continues to expand at a slow pace. This sluggish growth has limited opportunities for inclusive economic participation, resulting in insufficient job creation and rising costs of living for households across the province,” said MEC Ketso Makume.
“Of particular concern is the decline in the Free State’s contribution to the national economy. The province’s share of national GDP has fallen from 5.0 per cent in 2021 to 4.8 per cent in 2024, reflecting a gradual erosion of competitiveness relative to faster-growing provinces.
Looking ahead, economic prospects for the Free State will depend on decisive interventions. These include improving electricity reliability, strengthening logistics networks, enhancing municipal governance, and accelerating investment across key sectors. Failure to address these constraints with urgency will entrench a low-growth trajectory, limiting our ability to create jobs and improve living standards for our people,” continued the MEC.
