PROPERTY owners have been called to consider reducing their rentals which are viewed as stiff and affecting the growth of Micro, Small and Medium Enterprises (MSMEs) in Bulawayo.
The Minister of State for Bulawayo Provincial Affairs and Devolution Minister, Judith Ncube, has noted that a number of premises were closing up shop as most businesses are moving out of the Central Business District (CBD) or operating online due to the high rentals being charged.
A snap survey conducted by Sunday News Business revealed that rentals for shop space in the CBD cost from US$150 for those who share, US$200 for small spaces up to US$1 000 and beyond depending on the size of the space and where it’s located.
Officially opening Ngamla Supermarket at Nkulumane Shopping Mall recently, Minister Ncube expressed concern over premises that were facing neglect and losing lustre over time due to closure over high rentals.
“These premises are too expensive and a lot of shops have been closed as people move out due to high rentals. As Old Mutual you should consider reviewing your rentals here (Nkulumane Shopping Mall) and create a user-friendly atmosphere as you can see most of the shops are vacant,” she said.
The Minister said it was disheartening to see vacant shops at places such as Entumbane Complex while most SMEs were operating outside where they were exposed to the vagaries of harsh weather. She said most of the shopping malls, centres and complexes used to be pivotal business hubs in areas they were situated.
“You would find major supermarkets, pharmacies and banks, hence people did not need to go all the way into the CBD from their residential areas. However, currently it is a different story altogether as most of the facilities are all closed up and can now be accessed in the CBD.”
Minister Ncube bemoaned how most MSMEs were failing to grow saying they did not have access to operating spaces, while those who sold fruits and vegetables would resort to throwing away their perishables at the end of the day after they have been affected by either hot or rainy weather.
She commended South Africa-based Zimbabwean businessman, Mr Mpumelelo Phiri, who runs Ngamla Professionals for opening a supermarket at a place that has been closed for a while and the major facelift he gave to the place.
“He has led by example and put in quite some work before opening the supermarket. Hopefully this will create more traffic to the place resulting in other businesses opting to work in the closed shops around.
However, the issue still remains on rentals, if they may be reduced some MSMEs could join hands and take up a shop where they sell different products. The goal is to leave no one and no place behind as envisioned by President Mnangagwa as we work towards Vision 2030 of an upper middle-income economy,” said Minister Ncube.
She challenged more business people to work together with investors for the development of Bulawayo.
Bulawayo Chamber of SMEs vice-chairperson Ms Sithabile Bhebhe said SMEs businesses remained stagnant due to constant increases in rentals which were mainly charged in foreign currency.
“As SMEs all focus will be on paying rent and putting food on the table. People are even failing to open a company account or to register their businesses or obtain a shop licence. This has also resulted in these SMEs businesses not growing as there is lack of proper working premises,” said Ms Bhebhe.
She said SMEs find themselves stuck in the same status as they were always at the mercy of the landlord and some private companies who were milking them of the little money they were supposed to grow their businesses with. Mrs Samkeliso Nyambiri of Liso Clothing, a clothing manufacturer said as SMEs high rentals were one of their setbacks.
“There are times where business will be very low but rent money will still be needed, this then affects prospects of growth of the business. Most SMEs then resort to working from home but this also means you will have fewer walk-in customers.” – Sunday News
