27 March 2014
Two years after eviction from Soko African Market next to Greenmarket Square, former traders say their businesses have collapsed and they are struggling to survive.
Soko African Market was known for its arts and crafts, selling mostly to tourists. But in 2012, 40 of the immigrant traders were evicted by the Kings Hotel, which owns the property.
GroundUp found the place refurbished with a coffee bar, a Laundromat, a Thai massage spa, four salons, and a tuck-shop in front of the market.
One of the three traders that returned after refurbishment told GroundUp business has been slow and he is struggling to pay the rent. He is planning to move out if he can secure another trading place. He said he is desperate. He tried to negotiate with the owner to reduce rental fees, but the owner, he says, threatened to turn the place into casino and gambling complex.
Another trader, in car rentals, moved out this week.
37 traders did not return, because of the increased rentals after renovations. Stalls at the back which they could rent for R1,500 per month are now R4,000; those at the entrance, the most expensive section, which used to be R3,500 per month are now R6,000.
A salon owner who didn’t want to be named said, “I am paying R5,000 per month for a stall that is 2 metres by 3 metres. The first month was difficult for me because I paid R10,000 deposit plus R5,000 rent. If one does not have many clients, it is not good to take this place because it is hard to survive. The idea of starting a business is to make profit, not a loss”.
62-year-old Blessing Chibanda said after renovations the Soko African Market owner did call the traders back, but the rental fees and deposit was too much for them. They were then offered to occupy the shops without paying a deposit, but they could still not afford it. Some of the stalls remain empty.
He said, “After eviction I tried to do my business in Camps Bay, but I only operated for a few months. It was challenging to pay R150 every day for transporting my stuff from the storeroom in Cape Town to Camps Bay. There are times I would come back without selling anything. My stuff is in a storeroom at African Craft Centre in Loop Street. I pay R600 a month because the owner of the place is aware of my situation. Others pay R1,500 per month”.
“I am planning to sell all my stuff for even less than I bought it, just to get rid of it and find something else to do. With winter approaching, business will be slow, and I cannot continue to pay for rent … My last born is doing Matric, so I should make a plan to find money for his education,” said Chibanda.