Driving the wholesale market forward with innovation and technology, that is the new Smart Market Strategy of Joburg Market, Johannesburg's wholesale market. Speaking at the World Union of Wholesale Markets (WUWM) conference, CEO Sello Makhubela discussed the challenges and opportunities of Africa's largest wholesale market.
"To understand these properly, it is important to first explain the situation clearly," Sello noted. The director went on to receive the Wholesale Market Manager of the Year award from WUWM later in the day. "The city of Johannesburg has a population of about three million, while the wider metropolitan region comprises about seven million people. That already reflects the strong urbanisation in our country. Johannesburg has Africa's largest fresh produce market, as shown by its huge trade volumes. Every day, some 8,000 growers deliver their produce to the market, where about 14,000 buyers come to purchase."
© Joburg Market
Smart Market Strategy
"The Joburg Market has been around for more than a century. It was established in 1887 and is wholly owned by the City of Johannesburg, which is the 100% shareholder," he explains. "This shows the importance of the wholesale market. However, the South African market system is very different from the European one. In South Africa, growers bring their produce directly to the market, where buyers negotiate the price on the spot. There is no fixed price structure; supply and demand determine the price. The system is appreciated because growers receive their payment within 24 hours after selling."
Despite the importance of this megacity in South Africa, challenges remain. "Our biggest challenge right now is the outdated infrastructure. The facilities are in urgent need of modernisation. This has led our Board of Directors to adopt a new strategy: the Smart Market Strategy. This strategy focuses on innovation and technology. We want to transition to clean energy, especially solar power, given South Africa's ongoing energy problems. We are also exploring opportunities to generate energy from waste. A second focus area is the digitalisation of our market. We want to become a modern, data-driven market with real-time information, online trading, and training. This is how we aim to future-proof our market. Through foreign investment, we hope to achieve this modernisation, make our market sustainable, and support further growth."
African free trade zone
"Research shows that we can achieve a great deal by using user-centric data," he continues. "We have developed a clear roadmap showing where we are now and where we want to go, intending to secure Johannesburg's food supply. The city is highly urbanised and acts as a major consumption hub, which increases the need for a well-functioning trade market."
"At the same time, we are experiencing the effects of international trade tensions. For example, the United States recently imposed about 30 percent additional import tariffs on South African products. This has hit our export sector hard. That is why we are actively advocating for the African Free Trade Area (AfCFTA) to ensure free trade within Africa. It is encouraging to see that more and more African countries are joining this initiative. This shows that Africa is growing and increasingly cooperating economically. If we further open our borders and promote free trade between African countries, we can make tremendous progress."
For more information:
Sello Makhubela
Joburg Market
www.joburgmarket.co.za
