Current Edition >> Archives Section >> Leading Stories >> December 2007

Seatbelts and safety helmets for 2008!

• Johann Dannhauser

All indications are that South Africa as a country and also the Free State as a province is at the turn of 2007/08 approaching a blind corner and that 2008 might contain a bumpy ride. Therefore it appears that Free Staters should gird themselves and ensure that their seatbelts and safety helmets are on for the stretch ahead.

Also from a business and developmental point of view the Big Five warning lights are the following:

• The political situation in the country and also in this province, having a direct bearing on business and development, is as volatile as it has never been since 1994. The leadership struggle within the ruling party is so intense that whatever the outcome, it could be expected to continue indefinitely. This is likely to reverberate down the ranks of the civil service and parastatals.

• Crime affecting residences and business premises in the Free State has shot up (114% and 190% respectively) according to SAPS figures this month.

• Maintenance and development of infrastructure causes grave concern. Dangerous ecoli counts in drinking water at Free State towns have increased from 3% to 17%; the backlog on maintaining existing and building new roads in the Free State is rising; evidence on problems by municipalities to keep up with streets, street lighting and sewerage is mounting; and Eskom is struggling to meet electricity demands.

• The lack in the Free State of “big bang” developmental projects, i.e. mega size projects like several in Gauteng and KZN, Coega in the Eastern Cape, the R78,6 billion Medupi coal-fired power station in Limpopo; the platinum mining explosion in Mpumalanga, etc. The Free State is seemingly picking up a leeway in comparison with the rest of the country and which could have locally detrimental socio-economic effects.

• The upward trend in the interest rates, standing now at 14%, is having a chilling effect throughout the economy – property market, vehicle sales, food prices, consumer spending, etc.

On the positive side, are also five beacons of light:

• The FIFA 2010 World Cup is creating momentum also in the Free State economy, especially in the tourism and construction industries. It is definitely offering a golden opportunity for business to cash in.

• Although lacking mega projects, there are the R11 billion expansion plans of Sasol at Sasolburg, the Voorspoed Diamond Mine near Kroonstad, as well as many smaller developmental projects underway, e.g. a number of residential and business projects at Bloemfontein and also at Welkom, Bethlehem, Clarens, Harrismith, Pasrys, etc.

• The Currie Cup is standing in Bloemfontein as a symbol of the growing relevance of the city and the province as a sporting centre of excellence. This is being supported by the achievements of Bloemfontein Celtic, the Free State Eagles and others – all carrying with it valuable business spin-off.

• The Free State and its residents have built up a reputation of moderation and level-headedness and, if maintained, this could stand the province in good stead in time to come.

• For Christians, there is the unshakable faith that although man proposes, God disposes in what will be in the end a perfect way.

On the photo: Pretty Mpofana, acting marketing manager, fuel oils, in front of a new Sasol Oil fuel delivery tanker - part of the total Sasol operations at Sasolburg which is destined to culminate into one of the developmental bright spots in the Free State Photo by Sasol