Free State
Mangaung Municipality
Sector
Agriculture & Agri-processing
Business Support Services
Construction & Materials
Containers & Packaging
Delivery Services/Logistics
Infrastructure
Property
Retail
Below, we have highlighted two nodes that will be central to the success of the N8 corridor, and the opportunities and niche markets highlighted as having high potential for development
Bloemfontein CBD
The Bloemfontein CBD represents a multi-functional node with a mixture of commercial, retail, community, cultural and residential components – located at the most western point of the N8 corridor. The CBD is still the city centre but it has lost a lot of its diversified nature, which has been a contributing factor to the perceived economic decline of this central node.
Perceived contributing factors to this decline include:
• A decrease in the diversification of the residents of the CBD
• A shift towards more entrepreneurial ventures, with the result that fewer employment opportunities are available
• Competition between formal and informal traders and a shift in focus of products and
services
Development opportunities:
In its efforts to return the CBD to the economic centre of the city and the province, the municipality has noted the following opportunities for development:
• Residential development opportunities: growing the residency will diversify the population in terms of skills and needs to boost both the supply and demand of the area
• Tourism development opportunities – the museum and President Brand street
• Educational development opportunities
• Expansion of trade opportunities – formal and informal
• Expansion of the motor industry and supporting light industries
• Benefits from the redevelopment of Hoffman Plein: the inter-modal facility attracts high volumes of potential consumers that can be absorbed by structured informal traders and retailers within the vicinity. This also holds the opportunity of providing community
services within this precinct – police services, clinics, medical services, and so forth.
• Marketing and event management, through better branding of the CBD
Niche market identification
The following niche markets can be assigned to the CBD, falling into the retail and wholesale, office, and tourism property markets:
• Trade sector
• Community, social and personal service sector
• Tourism sector
• Business service sector
Fresh market produce/Estoire extension
The Fresh Produce Market is located in close proximity to the Spoornet Service Delivery facility and is clearly visible from the N8. The facility, however, does not obtain direct access from the N8. An abattoir is located on the same premises as the market – initiating agglomeration advantages. The node is also extended to include the Estoire smallholdings along the N8 corridor.
The Fresh Produce Market represents a distribution point for fresh products. Products are received from different parts in South Africa and sold locally and regionally. This node will continue to fulfil this role and function as part of the N8 corridor, strengthened by supporting activities in order to create an agriculture distribution and local beneficiation node.
Opportunities for investment and development along this node have been identified as such:
• It is evident that opportunities of local beneficiation exist, with fresh products concentrated at one point providing the opportunity for producing agricultural related products. Examples include: packaging, production of stir-fry vegetables, production of already-cut vegetables, canning fruit and vegetables, processing of baby food (purity), production of fruit juice extracts and puree
• Increase the level of local agricultural product sales at the facility
• Opportunity also exists for locating supporting services on the same premises in order to create a one-stop service. Such as might include: a butchery, fish market, a dairy component to purchase fresh milk, cheese, yoghurt and even a bakery
• Another option of strengthening this node is to attract higher volumes of consumers – this can be obtained via the development of a filling station
• Extension of the commercial and light industrial character of the node along the N8 and inner-ring road
• Development of higher density residential developments
Niche market identification
These opportunities translate into the light manufacturing sector, commercial sector, trade sector and construction sector. This then translates into the light industrial property market, retail and wholesale market and residential property market.
Full nodal analysis
These are just two of the
nodes identified as critical to the success of the N8 corridor. A full nodal analysis has been conducted and is available from Mangaung Municipality. For any information regarding investment in the developments outlined in this analysis, contact Moeketsi Sefika at the municipality.
