Public sector economist Tiisetso Makhele has urged the Free State province to adopt a strategy of local processing and beneficiation for its raw materials, citing the need for sustainable job creation. He made this argument following the release of national labor statistics showing the Free State's unemployment rate decreased to 36.2%, a drop of 2.3 percentage points. Despite this improvement, the province still maintains the third-highest unemployment rate in the country.
Makhele identified a structural weakness in the provincial economy, where growth in dominant sectors like mining and agriculture does not translate into sufficient employment. He proposed that the Free State learn from Limpopo's economic model, which he credited for that province's significant reduction in unemployment. Limpopo's focused approach includes leveraging special economic zones and industrial parks to add value to its natural resources locally.
The economist called for a radical shift toward industrialization, suggesting that processing the Free State's mineral and agricultural resources within the province would foster more inclusive economic growth and generate jobs for local communities.
Makhele identified a structural weakness in the provincial economy, where growth in dominant sectors like mining and agriculture does not translate into sufficient employment. He proposed that the Free State learn from Limpopo's economic model, which he credited for that province's significant reduction in unemployment. Limpopo's focused approach includes leveraging special economic zones and industrial parks to add value to its natural resources locally.
The economist called for a radical shift toward industrialization, suggesting that processing the Free State's mineral and agricultural resources within the province would foster more inclusive economic growth and generate jobs for local communities.
