WELKOM – An urgent intervention is needed to unlock a R100 million investment and prevent further economic losses and job stagnation resulting from ongoing administrative failures at Phakisa Raceway.

In March 2023, Matjhabeng Council approved a long-term lease for Phakisa Raceway and a Memorandum of Understanding with the Free State Gambling, Liquor and Tourism Authority, which then tasked the Free State Development Corporation with facilitating the process.

The FDC, acting as facilitator, advertised for proposals in July 2023 with a closing date of 30 July. The corporation appointed Investchem Chemical Logistics as the preferred bidder on 17 January 2024. However, since that appointment, Investchem has repeatedly requested the contract, which remains unsigned.

Councillor Piet Botha, Democratic Alliance Mayoral candidate for Matjhabeng Local Municipality, said they would urgently escalate the deadlock by formally engaging the Mayor’s Office, the Acting Municipal Manager, and the Premier’s Office to demand immediate resolution and accountability.

“In June 2025, I became aware of the plight and tried to assist with the process. I met with Executive Mayor Councillor Thandoxolo Khalipha, who subsequently promised to resolve the matter within two weeks. Investchem was even announced as the preferred bidder for Phakisa at the Matjhabeng Investment Summit,” Botha explained.

Failed Promises Across Government Levels

Botha said Investchem had engaged with various government officials without success. The company approached MEC for DESTEA Moses Ketso Makume, who indicated the matter predated his tenure. They then approached the Premier, but despite promises of resolution, nothing materialised.

“This matter has now been ongoing for three years and two months,” Botha noted.

The delays threaten significant economic consequences for Matjhabeng and its residents, who stand to lose a R100 million investment and numerous job opportunities. The situation is compounded by the deteriorating condition of Phakisa Raceway itself, which is being vandalised due to inadequate security and has had electricity cut off due to non-payment by the Provincial Government.

Investchem has confirmed that funding is readily available and has expressed willingness to settle outstanding municipal accounts. The company is prepared to begin repairs and improvements immediately upon contract signing, creating much-needed employment opportunities.

The investment represents a crucial opportunity for economic development in a region that has struggled with unemployment and economic stagnation. Phakisa Raceway, once a significant motorsport venue, could be restored to its former status whilst generating sustainable employment and tourism revenue.

Calls for Urgent Action

The DA has committed to maintaining pressure on all relevant stakeholders to ensure urgent resolution of the matter. The party argues that the Matjhabeng community deserves to benefit from investment, job creation, and the restoration of a key economic asset.

The prolonged delay highlights broader concerns about administrative efficiency and coordination between different levels of government and state entities. What should have been a straightforward implementation of an approved project has become a case study in bureaucratic dysfunction, with real economic consequences for a community in need of development opportunities.

The situation underscores the critical need for streamlined processes and clear accountability when implementing economic development projects, particularly in areas where investment opportunities are limited and unemployment rates remain high.