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There is an urgent need to review downwards rentals charged for business premises in different cities and towns which in most cases are astronomical. The country is battling to turnaround the economy which has not been performing to expectations but the rentals have not been adjusted to reflect this reality.
The rentals being charged for most business premises are in fact not in tandem with the performance of the economy hence are choking businesses especially Small and Medium Enterprises. Many buildings have as a result remained idle for years because those that are supposed to occupy them cannot afford the rentals.
The high tenant turnover at buildings in the cities and towns’ central business districts is a confirmation that many companies and individuals are being pushed out of business by rentals. Bulawayo, like other towns and cities, has many buildings that have been vacant for years yet there are many SMEs operating from unsuitable buildings.
It is time owners of buildings seriously consider the survival of their tenants and charge reasonable rentals. What quickly comes to mind is the Nkulumane complex where Old Mutual invested millions of dollars to provide buildings for use by the business community. The decision to build the complex received accolades not just from the business community which was provided with premises to operate from but from residents as well.
The completion of the complex brought services closer to the people but the sad development is that many of the businesses that had moved in have since left reportedly because they could not afford the rentals. The Minister of Small and Medium Enterprises and Co-operative Development, Cde Sithembiso Nyoni, recently challenged the informal sector to engage Old Mutual regarding the vacant premises at Nkulumane complex.
What is critical, as already stated, is for owners of buildings such as Old Mutual to review their rentals downwards to reflect the reality on the ground. It is a fact that well established businesses have left Nkulumane complex because they could not afford the rentals.
The situation will even be worse for SMEs if the levels of rentals are maintained given the fact that many of the SMEs are just starting to operate. In engaging Old Mutual, it is therefore important to come up with affordable rentals which also make Old Mutual realise a return for its investment.
What has to be appreciated is that the owners of buildings and those that rent the buildings need each other. It serves no purpose to invest in buildings that will be idle for years just because those meant to use them cannot afford the rentals.
We do not want a situation whereby government will be forced to regulate rentals as doing so will be interfering with business which is not good for the growth of the economy.
Online Reporter
Londile Moyo