Macroeconomic Impact of National Fresh Produce Market’s Infrastructural Investment under the Local Political Environment: A case study of the Joburg Fresh Produce Market

Abstract

This study examines the macroeconomic impact of potential investments in the infrastructure of the National Fresh Produce Markets (NFPMs), with Joburg Market (JM) as a case study due to its aging infrastructure. The study utilized the Social Accounting Matrix (SAM) broad transactional database for 2025. The Conningarth Economists (2021) Gauteng Macroeconomic Impact Model (GA-MEIM) was employed to estimate the macroeconomic impacts. The results showed increases in Gross Domestic Product (GDP), capital formation, government revenue, and household income during the construction and operational phases, in millions of Rands. The Balance of Payments (BoP) impact results revealed a negative BoP across all construction scenarios, but a positive BoP during infrastructure operation. The results further showed increased job opportunities during the infrastructure's operation compared with construction. Regarding greenhouse gas (GHG) emissions, the results show that increased investment leads to higher construction-related carbon emissions than during infrastructure operations. The study recommends that the local government of Gauteng prioritize asset-based strategies and invest in market and support infrastructure to improve operational efficiency, as these measures are expected to drive economic growth. The government should also consider a technological shift in energy and incorporate renewables in its infrastructure plans to reduce carbon emissions.