City cements agreement for major redevelopment of world-class Cape Town Market

Following the Council decision to conclude a long-term lease between the City of Cape Town and the Cape Town Market (Pty) Ltd, the two parties have formally signed an agreement that paves the way for a multi-million rand refurbishment that puts SMMEs, emerging farmers, and consumers front and centre. Read more below:

The City has embarked on a process to ensure the long-term continuation, by way of a 30-year lease to Cape Town Market (Pty) Limited, of the market which plays a vital economic and social role in both the city and the Western Cape.

‘The significance of this signing cannot be underplayed. The Cape Town Market is a vital cog in terms of food supply for the people of Cape Town. Importantly, 78% of the market’s 7 500 active registered buyers are small buyers who play an essential role in ensuring food security for the poorest people in our city,’ said the City’s Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos.

The agreement will also include:

• The R65 million construction of a new Traders’ Market facility, which will accommodate the ‘Buitemark’ informal traders currently located outside the market property along Gunners Circle. The space will comprise 64 purpose-built individual trading stalls.
• The Traders Market will be developed at a cost of R12,5 million on the site of the existing truck-stop.
• A new access road and market entrance for all fresh produce delivery vehicles and other trucks accessing the new truck-stop, at a construction price of R3,5 million.

In terms of the proposed agreement, the City will pay its share of the development costs of the Traders Market (65%) by way of a rental offset over a period of 35 months.

‘This innovative approach not only demonstrates that the City prioritises nutritional food security, it allows us to enter into a fiscally responsible partnership as the fixed payment method removes risks associated with project cost escalations that can occur.

‘Our partnership with the Cape Town Market Company also allows for the incorporation of a R5,45 million provision to subsidise the cost of trading within the new market, thus smoothing the transition from payment trading to formal and environmentally-compliant individual trading stalls. This cost will be for Cape Town Market’s account.

‘This is a significant step in upgrading and modernising this strategic economic asset so that it can continue to be a key part of providing jobs and food security to our communities, and jointly empowers the informal traders by providing access to world-class facilities and big demand buyers,’ said Alderman Vos.