Draft Market policy
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1. Problem
Statement1.1 According
to the Informal Economy study conducted in 2015, the informal sector contributes
approximately R4.3 billion to the economy of Cape Town annually. Markets can
make a significant contribution to the City of Cape Town’s informal economy.
1.2 The
potential economic impact of markets is, however, compromised by the fact that
markets are financially unviable, offer a narrow range of products and attract
a limited customer base. Markets are in this state due to the following:(a)
There not currently
being a clear distinction between “markets” and “events”, and the responsibilities
of various directorates and departments in the City to manage and regulate such
markets and/or events.
(b)
The lack of a coherent
or strategic management model for markets.
(c)
Many markets
operate in culturally homogeneous, lower income areas which limits the social
and economic potential of the market experience. Consequently markets are often
financially unviable, offer a narrow range of products, attract a limited
customer base, lack a defined public purpose and are not realizing their
potential to contribute to a sense of place.
(d)
Safety issues in certain
markets.
(e)
The lack of vibrancy
even though some markets enjoy locational advantages with the locational
features and high income neighbourhoods they trade in.
2. Purpose2.1
To provide a
consistent set of guidelines to City departments for the management of markets
on all City-owned and managed properties.
2.2
To provide market
operators with a clear framework of the City’s process flow to obtain approval
for markets or designation as a market operator, and the requirements,
conditions, and guidelines for the operation of markets on City-owned land
within the City of Cape Town.
2.3
To ensure that a
consistent process exist for assessing market applications, and allocating permits/leases
where applicable.
3. Desired
Outcomes3.1
To create a
conducive and supportive environment for all the stakeholders involved in
markets.
3.2
To enhance the
economic, social and cultural value of markets within the City.
3.3
To establish a
network of vibrant and dynamic markets that adds to Cape Town as a desirable
location for business and place making.
3.4
To establish a
clear and transparent set of processes for market management that does not add
to the cost of doing business in Cape Town.
3.5
To recognize the
importance of urban agriculture in promoting healthy lifestyles and encouraging
local food production, distribution and consumption (refer to the City’s Urban
Agriculture Policy and Food Systems Study).
3.6
To establish
clear roles and responsibilities in terms of managing different types of
markets.
3.7
To establish an unambiguous policy environment for markets.
4. Strategic
IntentThe
Constitution (1996)4.1
Local governments
have a constitutional directive to promote social and economic development. The
Constitution also adds that when government conducts itself as an agent of
socio-economic development, it should align its administrative and management
methods to support such causes (Constitution of South Africa, 1996:89-90). The setting
of regulations for informal trading is one of the responsibilities assigned to
local governments by the Supreme law of the land.
Integrated
Development Plan4.2
The Markets Policy
supports the strategic focus areas of the City’s Integrated Development Plan to
support the implementation of priority City policy frameworks such the Events
Policy, Integrated Metropolitan Environmental Policy and others with regards to
markets in the following ways: Economic
Growth Strategy4.3
The policy draws
its strategic thrust from the City’s Economic Growth Strategy, particularly
with regards to the focus on:
5. Regulatory
context5.1
The following
existing policies and by-laws are contextually relevant and have implications
for the implementation of this policy:
7.
Policy DirectivesGeneral
principles7.1
The City supports
the operation of sustainable markets within the City that reflect the lifestyle
and cultural diversity of the area, enhance tourism and the social and economic
well-being of City of Cape Town residents and visitors. 7.2
Permits are not
required for markets on private land. However, events based markets on
privately owned land that impact on City services requires approval through the
Special Events Committee (SPEVCO) process – as determined by the City of Cape
Town Events By-Law and Events Policy. 7.3
To ensure a
focused and coordinated approach to the management of market spaces, the City
will endeavor to appoint a market operator to manage each market operating on
City-owned and City managed property. 7.4
In the
appointment of market operators, appropriate consideration will be given to: 7.5
The City will
focus its initiatives in support of markets on its roles as: 7.6
Where markets are
located on City-owned and managed property, the City may, from time to time and
through a public tender process, advertise for expression of interest from
interested parties to manage the market(s) in question. 7.7
Market operators must
enter into an agreement with the City, outlining the rights and
responsibilities of the market operator, and the support to be provided by the
City. 7.8
The City
encourages proactive identification of City-owned land and buildings for
markets and will establish a mechanism through which such opportunities could
be brought to its attention, and could potentially be included in future
requests for interest from market operators. 7.9
When an
individual or organization proposes a space for a new market, the party does
not automatically assume the role of a market operator. The appointment of the
market operator must still go through the relevant tender process. 7.10 Market operators on new sites will have to enter into
an agreement with the City, outlining the rights and responsibilities of the market
operator, and the support to be provided by the City.7.11 Before the City initiates the process of identifying
and appointing a market operator for a new market space, the City must:Roles and responsibilities of
market operators7.12
Market operators
may respond to requests for interest from the City for the operation of markets
on City-owned property. 7.13
Market operators
will assume responsibility for: 7.14
Within 12 months
of commencing operations at a particular market, market operators must provide
the City with annual financial reports detailing the number and type of stalls,
fees collected, site maintenance performed and any donations made or benefits
accrued to non-profit organizations within the local community. Roles and
responsibilities of the City7.15
The City will
provide a dedicated intermediary between market operators and the City to be
the liaison between the two parties while simultaneously fulfilling the role of
monitoring and evaluating the market. 7.16
The City will
inform existing traders operating in markets on City-owned or managed property
about the changes in the City’s approach to markets, and provide a three
months’ notice period to align with the procedure standards of this policy. 7.17
Where markets
operate on City property, the City may invest in appropriate supporting
infrastructure subject to available Capital budget, Council approval and case
by case necessity. The City may also partner with the private sector in
providing such infrastructure. 7.18
The City will develop
criteria to assess the performance of markets within three months of the
finalization of the policy. These criteria will be included in the agreements
with market operators and will be used to review the performance of markets, at
appropriate times, to ensure their sustainability and viability. 7.19
All markets will
be subject to regular inspections at least once per quarter by authorized City
Officials to ensure compliance with the provisions of this policy, the
Occupational Health and Safety Act and other relevant legal and policy
frameworks.7.20
The City will
manage all public participation processes in relation to markets on City-owned
and managed property and will be responsive to inputs and requests from the
community. 7.21
To support the
contribution of markets to the informal economy, the City will: Process for the appointment of
market operators7.22
The City will put
out an expression of interest advertising for a market operator. 7.23
Interested
parties will be expected to complete an application form to apply for the
market operator position accompanied by a proposition of how the interested
party envisions to make the market successful. 7.24
If the
application is successful, the applicant may be required to enter into an
agreement with City, which will include an annual permitting fee. 7.25 Persons wishing to propose a regular market on
City-owned or managed property City should complete a market proposition form
identifying the property suggested for the market, and outlining why it is
proposed for a market. 7.26 The department responsible for Economic Development
will assess the proposal against predetermined criteria in the first round of
consideration.7.27 Should the proposal meet the criteria in the first
round of considerations, it will be then be tabled to a committee who will
determine whether further investigation into the feasibility of the market should
commence.7.28 Following the recommendations from the committee
either a suggestion will be rejected or a feasibility study will be conducted
to determine the sustainability of the proposed market.7.29 Should the proposed market be found sustainable and/or
viable the City will conduct appropriate public participation to determine the
desirability of a market in the proposed space. 7.30 If the City is satisfied that the market is/ could be
supported by the affected community, it will put out an expression of interest
advertising for a market operator. 7.31 Interested parties will be expected to complete an
application form to apply for the market operator position.7.32 If the application is successful, the applicant may be
required to enter into an agreement with City, which will include an annual
permitting fee. Rules pertaining to markets7.33 The permissions/ plans required by different market
typologies are summarised in Annexure A. 7.34 All vendors, including food vendors must comply with all
applicable City policies, Labour Laws and all other applicable laws.7.35 The sale of alcohol and/or drugs within the grounds of
the market is prohibited. 7.36 In addition to the rules in 7.34 and 7.35 above, the
following rules will apply to Farmers’ and Food Markets:
8. Implementation
programme8.1
This policy will
be implemented transversally by all departments across the municipality and in
partnership with other spheres of government. 8.2
Details on the
responsibility for various policy directives and the timeframes for
implementation will be summarized in the implementation plan.
9. Monitoring,
evaluation and review9.1
Appropriate
performance criteria in relation to this policy will be developed in
consultation with the Executive and reported on as part of the business
planning and SDBIP framework.9.2
The policy will
be reviewed within two years of its approval by Council.
(a)
Opportunity City: Creating an enabling
environment for economic growth and job creation, and to provide help to those
who need it most.
(b)
Well Run City: Traders rely on the
consistent provision of services to support their operations, easy
accessibility to markets, and clear trading processes and regulations.
(c)
Caring City: To ensure that markets are
not underperforming and sustainable in the long-term to contribute to the
informal economy of Cape Town
(a)
coordinating
local development programmes to enhance the informal economy;
(b)
implementing
a sector growth strategy focused on developing markets that moves beyond
trading to include other forms of informal entrepreneurship;
(c)
sectoral
development and trade promotion for markets in the Cape Town metro; and
(d)
the
promotion of Cape Town as a destination for tourist.
(a)
City
of Cape Town Informal Trading Policy;
(b)
Events
Policy ;
(c)
Events
By-Law;
(d)
Urban
Agriculture Policy; and
(e)
The
Integrated Metropolitan Environmental Policy.
(a)
Formal
and informal traders that trade at public markets on City-owned properties
within the City of Cape Town municipal area.
(b)
All
applications for markets within the City of Cape Town City area that require a
lease or permit for use of land and buildings as prescribed in the Municipal
Asset Transfer Regulations.
(a)
Festivals
and ‘one-off’ community based events and fundraisers which are held less than
three times a year (this includes: annual markets, night markets and fetes).
(b)
Trading
activity in a designated public place by a group of formal or informal traders
for less than 12 months.
(a) Leveraging relationships with
the City’s existing area-based strategic partners in the relevant area (for
example: the entities established in Special Ratings Areas);
(b) Commitments from market
operators to manage markets in an environmentally sustainable manner (for
example: by promoting environmentally friendly packaging and bagging,
responsible waste management and recycling);
(c) Commitments from market
operators to encourage the sale of locally designed and manufactured goods;
(d) Commitments from market
operators to encourage and promote participation by local producers who wish to
sell local farm produce and food products; and
(e) Commitments from market
operators to support the entrepreneurial development of the stallholders in the
markets for which they are responsible.
(f) Enabling
Regulator:
Creating an enabling regulatory environment (including appropriate policies and
by-laws) for informal trading and markets, and establishing efficient
procedures.
(g) Facilitator: Connecting traders to
relevant resources that complement their preferences.
(h) Promoter: Actively promoting markets as
platforms for economic activity and entrepreneurship.
(i) Implementer: Facilitating markets by
implementing the Markets Policy and accompanying procedures.
Existing markets
New markets
(a) conduct feasibility assessments to determine
the viability, durability and sustainability of a market in the identified
space; and
(b) engage with surrounding
community on the desirability of operating a market in the identified
space.
(a)
The
recruitment of stallholders in an open, transparent and fair process;
(b)
Managing
the applications for relevant trading permits for all stallholders;
(c)
Entering
into formal agreements with all stallholders outlining the rights and
responsibilities of both the market operator and the stallholder;
(d)
Ensuring
the adequate financial management of the market;
(e)
Obtaining
public liability insurance;
(f)
Maintaining
safety and security at the site and developing a safety plan where applicable;
(g)
Cleaning
and maintenance of the site and related facilities (such as ablution
facilities) and developing a waste management plan where applicable; and
(h)
Ensuring
minimum disruption of traffic and development traffic management plans where
applicable.
(a)
Conclude
the appointment of market operators in a speedy and efficient manner;
(b)
Fast-track
trading permit applications from market operators;
(c)
Establish
discounted rates for trading permits in markets on City-owned or managed land;
(d)
Ensure
that stallholders are informed about the City’s programmes in support of small
businesses; and
(e)
Provide
market operators with economic research and intelligence.
Existing
markets
Required permissions/ plans
General rules
Rules for Farmers’ and Food Markets
(a) The sale of live animals or
birds is prohibited;
(b) All stall holders must label
their produce or include signage at their stall to indicate the location of the
farm/area where the produce was grown or sourced.
