Israel’s ‘CityMart’ co-op model may just work in SA

Bev Goldman

Add to this is the stress of citizens having to fork out more money, which leads to more anxiety and pressure and soaring medical bills, with more of us desperately seeking remedies to ameliorate the pain and panic of dwindling bank accounts – and the situation looks disheartening and sombre.

The Jewish Agency for Israel (JAFI) recently launched Tzarchaniyat Ha’Ir (“CityMart”), a new chain of food co-ops to be located throughout Israel’s socioeconomic periphery, offering customers groceries for significantly less than market prices.

According to media reports, the model has been launched in order to combine a response to the cost of living in Israel and a partnership with local residents. JAFI is not doing this on its own – it is partnering with the Israel Venture Network; with contributions from the UJA-Federation of New York, the United Jewish Endowment Fund of Greater Washington, and private donors – but it will be the major facilitator.

“CityMart” will operate as a social venture, its earnings going toward launching additional branches, lowering prices further, and fostering communal activities for local residents.

What appealed enormously to me was the fact that communal activities at the branches will be run by local young people who are interested in creating social change in their communities. All earnings from sales will be invested in strengthening the local communities, as well as in further developing the venture.

Co-ops have never really taken off in South Africa, but perhaps this model could work.  What is envisaged is that the products sold will be sourced from small and medium-sized companies to offer residents lower-cost groceries.

Local producers will be offered an opportunity to join the project; and wares will be received at several logistical centres, which will supply local branches according to their needs. The individual co-ops will survey the lowest prices offered in the area, ensuring that each individual product is offered at the lowest price available among competitors. Additionally, members of the chain’s buyers’ club will receive a 15 per cent discount.

According to Natan Sharansky, chairman of the executive of JAFI, “this new initiative seeks not only to lower the cost of living and ensure that everyone has access to high-quality, affordable groceries, but also to strengthen the local community by involving community members, consumers, and activists in a co-operative effort that belongs to them alone.”

In Israel the project is aimed at lower income individuals and struggling communities; but that doesn’t preclude other communities from embarking on similar initiatives.

 Israel consultant

SA Israel Chamber of Commerce