Current Edition >> Archives Section >> Leading Stories >> 19 - 15 January 2004

First black market agency operational

Key role by Mangaung Local Municipality
Flowing from the broad objectives of the Integrated Development Plan (IDP) of the Mangaung Local Municipality, which strives to develop PDI's of Mangaung economically, the Mangaung Fresh Produce Market (MFPM), is proud to announce the establishment of the first black agent on its premises. This entrepreneur, born and bred in Mangaung, Mr. Modise Mokgele, has piloted Modise Market Agency and entered into an agreement with a well-established agent, Subtropico. The Management of MFPM is proud to be part of this milestone in the enhancement of economic value by two competent partners in their quest to improve the socio-economic fabric of South Africa.
Remarks by GM of Fresh Produce Market at National conference in PE
On the subject of black economic empowerment in the market agency business, the General Manager of the Mangaung Fresh Produce Market, Mr. Ronnie Moleme, in a recent address to the national fresh market conference held at Port Elizabeth, made inter alia the following observations:
“Fresh produce markets in South Africa are trading produce in excess of R4 billion per year, resulting in market agents getting a commission of about R300 million per year. Since very little of this commision accrues to aspirant black market agents, a need exists for the transformation of the industry.
“Representation by black people, women and the youth is indeed low. Potential participants need to be identified on merit. Opportunities, challenges and obligations should be discussed openly and frankly. Exposure to the market agency business is to be encouraged through learnerships, mentorships and vacation work. Short courses on market agency are to be developed by the National Agricultural Marketing Council (NAMC). Market Agents themselves to be trained in dealing with new entrants, hawkers and the emerging farmers. Options such as joint venture market agencies and equity / shareholding in existing ones be explored. In this respect, the role of the Market Master / Chief Executive in broadening market agency business, is crucial and manifold.
“The broadening of access to the HDI in the Market Agency will enhance the business image of the country. Black market agents could bring a better understanding of how to deal with the hawkers and emerging producers, while other distribution outlets that are not necessarily there at the moment could be attracted, e.g. caterers, etc. From their side, existing market agents should see the need and go out of their way to support the process. Producers should be engaged so that they can get used to the new entrant (remember this is about relationships and money!). The new entrants should be exposed to training and capacity building by the potential partner, starting from sales, administration, systems, finance and overall management.
"Case study of establishing a black market agent at MFPM: A serious individual was identified who understands business. The person was introduced to one of the big agents at the market, namely Subtropico. Discussions were facilitated between the two parties. Ownership of the new agency is 100% in the hands of previously disadvantaged individuals. Subtropico will market the agency as part of their affirmative action plan and assist with sales, stock control and all trust administration.
“A market agency is a strategic business activity in the market. It has, however, to be transformed in line with the entire institution. The process should be participatory in order to ensure buy-in and support. A concerted effort to train and support new entrants is critical with a view to improve the chances of success. Partnerships and good relations should form the basis of the venture.”