Cape Correspondent

CAPE TOWN The Cape Town city council has sold the Epping market to empowerment-linked Cape Fresh International for R16m as part of a process to rid itself of noncore activities.

The deal, which was signed this week, means that the Cape Fresh International consortium will take over the running of the market from Monday.

With a 67% empowerment component, it is also the biggest empowerment deal yet undertaken by the city.

The Epping market has an annual turnover of R760m, and the new grouping has already projected profits of R37m after the first two years.

Mayor Nomaindia Mfeketo announced the sale during yesterday's council meeting, and said the council would receive R6m a year for the next 20 years from the lease on the market.

Anwah Nagia , who heads Cape Fresh International consortium, said the deal was "magic" because of the opportunity it afforded "ordinary men and women who had previously been relegated to the pavements of the city" to have a share in running the business of the market.

Three large community nongovernmental organisations also hold equity.

Mfeketo said the sale made good sense for the council as it freed up significant financial resources, which could be used for services in other muchneeded areas.

Feb 26 2004 07:52:05:000AM Chris van Gass Business Day 1st Edition