Have your say: Draft market policy

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 Strategy
4.3       The policy draws its strategic thrust from the City’s Economic Growth Strategy, particularly with regards to the focus on: 

5.     Regulatory context
5.1       The following existing policies and by-laws are contextually relevant and have implications for the implementation of this policy: 

6.     Policy parameters
6.1       This policy is applicable to:
6.2       This policy is not applicable to: 

7.     Policy Directives
General principles
7.1       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 operators
7.12    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 City
7.15    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 operators
7.22    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 markets
7.33    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 programme
8.1       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 review
9.1       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

New 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.