Areas and Places News

The City of Cape Town & Cape Town Market sign 30-year lease with multi-million rand refurbishment

Photo caption: Peter Du Toit, Non-Executive Director on the Board, and Igor Boonzaaier, Director and Board and Executive Committee Member (standing). Mike Simms, Director: Property Management, Alderman James Vos Mayoral Committee Member for Economic Opportunities and Asset Management, Phile Van Zyl, Chairman of the Board and Executive Committee member and Councillor Anda Ntsodo (PC Chairman) (seated).

The City of Cape Town and the Cape Town Market (Pty) Ltd. have signed an agreement for a multi-million-rand refurbishment.

This follows the City’s conclusion of a thirty-year lease agreement with 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” comments the City’s Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos. “The Cape Town Market is a vital cog in terms of food supply for Capetonians. Importantly, 78% of the market’s 7 500 active, registered small buyers play an important role in ensuring food security”.

The agreement will put SMEs, emerging farmers, and consumers front and centre by including 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 of 64 purpose-built individual trading stalls.

While 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 will be constructed at a cost of R3.5 million.

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

This innovative approach allows the City to enter into a fiscally responsible partnership as the fixed payment method removes the risks associated with project cost escalations that can occur”.

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

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,” he concludes.