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Economic Profile


As is the case with the rest of the Free State province, about 85% of the land in LDM is used for agriculture. LDM was the third most significant contributor to the Free State agricultural sector, contributing about 19%. The negative growth in the agricultural sector can be attributed to a number of factors including drought, precarious weather conditions, and market conditions. Most farmers are mechanizing their operations, which leads to job losses.

As the economies of the smaller towns are based on businesses supporting agriculture, the business climate of the smaller towns is showing negative trends.

The industrial base of the region is mainly centered on the mining and agricultural sectors with very little new industrial development. Apart from moderate industrial activities in the main towns very little industrial activity is taking place in the rest of the region apart from Hennenman and Bothaville. One of the challenges for the region is to develop a diversified industrial and commercial base. This can be achieved through a beneficiation process with agricultural products.

All primary products are for distribution. The process of value adding to our primary products is one of essential elements to broaden our industrial base. However the economic base of the country is growing away from industries towards information and financial services but the shortage of skills in this area will prevent further growth.

Tourism is not well developed in the area, particularly as the region lacks natural attractions. There is however a potential to

develop tourism with regard to specific areas such as eco-tourism, game farming, mining and cultural tourism and major sport events. The tourism infrastructure of the region is underdeveloped and will require upgrading before any serious attempts towards tourism promotion is done. The remote rural areas, such as Boshof, Brandfort and Hertzogville offer opportunities towards ecotourism and farms.


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