The decision should not be seen as purely industrial restructuring, but rather as a major economic shock with far -reaching implications, said University of the Free State Economics and Finance Expert Dr. Eugene Buthelezi. The closure can cost hundreds of jobs and indirectly hit thousands more due to disruptions of the wider supply chain.
“For everyone (who) will lose their jobs, two or three people will be hit in the supply chain. Yes, for now 680 can be influenced immediately, but 1,380 jobs can be influenced indirectly.”
Economic decline in the long term
The immediate fall -out, he said, would be visible in households and local companies. “The effect is very clear in the short term. Households will lose their income, consumer spending will be low and there will be a pressure for small companies.
“For a province that experiences a very high level of unemployment and that registered 38.5% in the second quarter of 2025, this is very worrying.”
The free state, which is already struggling with structural unemployment and slow industrial growth, runs the risk of economic decline in the long term if no interventions are made. The output of a large employer such as Coca-Cola could weaken Bloemfontein’s industrial basis and the trust of investors, Buthelezi warned.
“In the long term, without another employer coming in, Bloemfontein risks structural unemployment, which further weakens the industrial basis. Skills will be lost and the city will become less attractive for new investors.”
In addition to job losses, the closure can also influence the income of municipal income, in particular of business rates and service costs, at a time when the demand for social assistance is expected to increase. “Local government runs the risk of losing income at the same time due to rates and services [it will] Have challenges of increasing social support, “he said.
Although access to the benefits of unemployment insurance (UIF) could offer temporary exemption for affected employees, Buthelezi insisted that this would not be sufficient. “As we know, UIF is not enough.
Clear economic strategy
“We need really targeted retraining, reskilling programs that actually link to real opportunities in sectors with potential areas such as agro processing, renewable energy and other logistics sectors. If the training is not tailored to market demand, we risk people.”
At Coca-Cola he insisted on acting in a responsible manner during the process, to ensure transparency and adequate cutbacks for affected employees. Buthelezi called on the provincial government to develop a clear and robust economic strategy that not only attracts new industries, but also strengthens small, average and micro -enterprises (SMMEs).
“It is a crisis and a wake-up call for the province, because a new, clear strategy that will attract industries is needed to diversify the economy and also to support small, medium-sized and micro-companies, including better infrastration, less bureaucracy for investors and strong public partnerships.”
In a statement, Coca-Cola drinks South Africa said that it is planning to adjust the organization that, if implemented, some roles can lead to some roles and unfortunately can lead to job losses.
“We started with a consultation process with trade unions and non-trade union employees who can be affected. Our priority is to support affected colleagues with fairness, transparency and compassion during this process.”
CCBSA also stated that the consultation is underway and no final decision has been made.
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