The Black Agricultural Commodities Federation (BACF) has issued a robust response to the Competition Commission’s provisional findings and recommendations on the National Fresh Produce Market Inquiry.
“The economic potential of township economies is immense, with over R750 billion circulating annually within these communities,” stated Dr Moshe Swartz, CEO of BACF, emphasising the urgent need for structural reform to empower black communities economically.
In a formal submission to the Competition Commission, Swartz highlighted the economic disparities perpetuated by the dominance of major retailers such as Pick n Pay, Shoprite, and Spar in township and rural markets. He criticised these retail giants for exploiting local wealth without contributing to sustainable community development.
“The wealth generated in our townships often returns to bolster colonial-era businesses, perpetuating economic disparities,” Swartz lamented.
Call for legislative reform to empower local fresh produce markets
BACF’s main contention with the Competition Commission’s findings revolves around perceived monopolistic practices entrenched in South Africa’s fresh produce markets.
“We urge the commission to devolve fresh produce markets to local communities,” Swartz stated, “and require government entities to invest in township infrastructure. This, we believe, will enhance economic velocity within black communities, fostering sustainable local economies.”
Related stories
The federation’s submission calls for legislative action across multiple government departments, including small business development, land reform and rural development, cooperative governance and traditional affairs, and agriculture.
“These actions are essential to curbing non-competitive behaviours and fostering inclusive economic growth among black farmers and market agents,” Swartz argued.
Central to BACF’s critique is the exclusionary nature of current market practices, which disproportionately affect historically disadvantaged producers. “Inequitable access to NFPMs and systemic disadvantages faced by black market agents highlight ongoing economic exploitation.”
Furthermore, BACF underscored discrepancies in National Fresh Produce Market by-laws, advocating for standardised regulations to facilitate fairer market access for small-scale farmers and historically disadvantaged producers.
The federation also highlighted the delayed payments faced by black farmers, calling for regulatory measures to enforce timely payments within the industry.
Measures to enhance competition
Addressing the high concentration of retail power in the hands of major grocery chains, BACF proposed measures to enhance competition in the fresh produce retail sector.
“Establishing a fund to support new entrants and mandating property owners to allocate retail space for emerging retailers in shopping centres are crucial steps,” Swartz explained.
“We are committed to advocating for systemic change that ensures equitable access and fair market practices for all stakeholders in South Africa’s fresh produce sector.”
Swartz emphasised the urgency of devolving fresh produce markets to communities.
He said, “If you must take note of any of the many interventions that black farmers … delved upon [in a recent webinar], it is the fact that our townships are circuits of wealth. Even without covering the many economic activities taking place in black communities, KasiNomics estimates that no less than R750 billion circulates, annually, in black settlements.
“But all of this wealth is unorganised and not purposefully channelled for the long-term improvement of black lives. It comes and goes back to bolster colonial businesses as soon as it is lands on black hands.”
READ NEXT: Egg-cellent ambition! Sizo is building a poultry empire
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
