The economy of the MANGAUNG Local Municipality plays a significant role in the Motheo District economy (92,5%) as well as the Free State economy (25,5%), but it is relatively small when compared to the national economy (1,6%).
Of importance is the relatively small share of the local agriculture, mining and manufacturing sectors compared to the province and the country. Mining’s small share is understandable as MANGAUNG competes with the Goldfields area, which is very strong in mining, however the share of agriculture and manufacturing is disturbingly low. On the other hand, the tertiary sector of the local economy is very significant within the context of the province.
Gross Geographic Product (GGP) Per Capita
Another means of gauging the relative size of the local economy is by analysing the GGP.The GGP per capita provides an indication of the amount of production that takes place in an area in relation to the population of that area. Although Botshabelo and Thaba Nchu have relatively more people than economic activity, Bloemfontein has a strong GGP per capita.
Sector Profile Comparison
Approximately 87% of economic production in MANGAUNG occurs in Bloemfontein while only 7% and 6% respectively occur in Botshabelo and Thaba Nchu.
MANGAUNG Economic Growth
The MANGAUNG economy grew at 1,8% per annum from 1990-1996 followed by a period of lower growth from 1996-2001. A higher growth rate of 1,8% is forecast for the period 2001-2006.
When compared to growth in the province, the local economy outperformed the province in all sectors except for agriculture. National growth for the period 1996-2001 was 2,3% per annum, the study areas therefore did not perform as well as the remainder of the national economy.
Sectors showing strong growth in general are transport and finance while the construction and manufacturing sectors are experiencing negative growth.
