South Africa's Agriculture Minister John Steenhuisen has raised concern over the Matlosana Local Municipality's ongoing failure to make timely payments to fresh produce market agents, warning that the situation has disrupted market operations. The municipality reportedly owed agents R7 million (about US$376,000) in arrears as of August 2025.
A March 2021 high court ruling requires the municipality to transfer 95% of daily produce sales revenue to registered agents within 48 hours. Despite this, Steenhuisen said the municipality's non-compliance has forced agents to use their own trust accounts to cover shortfalls.
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In response, the minister has referred the matter to the Agricultural Produce Agents Council (APAC), requesting urgent regulatory intervention. The request includes reviewing the municipality's role in managing trust funds, proposing measures to protect agents and producers from financial loss, and advising on possible enforcement actions or amendments to current legislation.
APAC registrar Francois Knowles told Farmer's Weekly that the council's powers do not extend to municipalities. "At this point, there is only one thing we can do, which we are already doing, and that is to ask nicely again and again, and beg for the municipality to make payments within 48 hours," he said.
Knowles added that the Institute of Market Agents of South Africa filed an urgent court application earlier this year, but the hearing has been postponed until February 2026.
Clive Garrett, marketing manager at ZZ2, said the company temporarily stopped sending produce to the Matlosana market in August after several weeks of missed payments. "We started sending produce to the market again about a month later, when it became evident that the situation had improved. But payments are still not as fast as they should be, but they are more regular," he said.
Garfield Market Agents' representative Leonard Hattingh confirmed that payment delays have since been reduced to about one week. "Agents are in a difficult spot because of the delayed payments, but the saddest part of all of this to me is the damage the negative publicity will do to the market," Hattingh said. "People will read these stories and lose their trust in the market, even though it is not an isolated problem but also affects other municipal markets."
Knowles said delayed payments are often accompanied by broader management issues. "Markets need good security; infrastructural maintenance of roads, floors, buildings, and equipment; good hygiene; and a strong management team to oversee operations and liaise with the municipality. Unfortunately, municipalities that struggle financially usually also have difficulties upholding these basic prerequisites for a well-functioning market," he said.
Source: Farmer's Weekly
