Minister bemoans high rentals, says they are beyon...

Minister bemoans high rentals, says they are beyond the reach of the SME sector

Work together to build nation' | The Chronicle — Minister Judith Ncube

Zim Now Writer

The rentals charged by established property developers are beyond the reach of many, particularly the micro, small to medium scale enterprises who are leasing to sell their wares.

The matter, even when not confined to the Southern parts of the country, came to light when Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube, recently officially opened Ngamla Supermarket at Nkulumane Shopping Mall. She came face to face with shopping space that has not been taken owing to high rentals.

Noting that profits for SMEs are marginal and that they have to put up with high costs to acquire and transport the goods they sell, Minister Ncube urged the property owners to reconsider the high charges and revise them downwards to curb migration by the small businesses from the Central Business District.

“These premises are too expensive and a lot of shops have been closed as people move out due to high rentals,” she said of Nkulumane Shopping Mall which is owned by Old Mutual.

“As Old Mutual, you should consider reviewing your rentals here at Nkulumane Shopping Mall and create a user-friendly atmosphere as you can see most of the shops are vacant.

“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 added.

A survey by Zim Now revealed that most similar properties in Harare CBD and Chitungwiza have lots of space that is vacant owing to inability by SMEs to afford the high rentals. Properties owned by Old Mutual include High Glen, Westgate and Chitungwiza Shopping complex.

Whereas shop spaces in Bulawayo range between US$150 for those who share and US$300 for small individual ones, in Harare they are as high as US$500. On the side of accommodation, a one-bed flat not costs in the region of US$270 while a two bed flat is going for US$450.