Restructuring manufacturing in south africa's lagging regions: The case of the free state

The manufacturing economy of the Free State reflects both historical dependence on locally available raw materials and high-levels of state intervention, in terms of support for import substitution and Homeland development. In the contemporary era, deindustrialization, the uncertain future of the clothing/textile industries and limited growth over the last ten years, suggests that, in terms of manufacturing, the Free State is a ‘lagging’ region. While there has been significant expansion in the number of small firms, this is not matched by employment growth and does not compensate for the loss of many large firms and economic downscaling in the Goldfields. Key sectors such as petro-chemicals and gold jewellery present certain opportunities for future growth.