The third largest of South Africa’s nine provinces, the Free State suffers from unemployment, poverty and low skills. Only one-third of its working age adults are employed. 150 000 unemployed youth are outside of training and education. Centrally located and landlocked, the Free State lacks obvious regional assets and features a declining economy. How can the Free State develop a more inclusive labour market and education system? How can it address the long-term challenges of poverty, inequity and poor health? How can it turn the potential of its universities and FET-colleges into an active asset for regional development? This publication explores a range of helpful policy measures and institutional reforms to mobilise higher education for regional development. It is part of the series of the OECD reviews of Higher Education in Regional and City Development. These reviews help mobilise higher education institutions for economic, social and cultural development of cities and regions. They analyse how the higher education system impacts upon regional and local development and bring together universities, other higher education institutions and public and private agencies to identify strategic goals and to work towards them.