Online Reporter
Judith Phiri,Zimpapers Writer
Industry players continue to express concern over the high rates charged by local authorities, calling for Government intervention to ensure a conducive operating environment is created.
This comes at a time when the Government has introduced ease of doing business initiatives, with a commitment to review levies, licences, fees and permits across 12 key sectors.
The initiatives seek to simplify processes for businesses, ultimately fostering a more conducive environment for economic growth.
Speaking during a question-and-answer session in an online webinar, Confederation of Zimbabwe Industries (CZI) Matabeleland Chapter president, Mr Stephen Ncube, called for Government to intervene as local authorities’ rates were choking businesses.
“On the issue of the Zimbabwe National Water Authority (Zinwa), we have seen a development that is quite welcome in terms of a zero charge on the water to farmers. My contribution is that if this can be extended to the local authorities.
“We have been at loggerheads with a local authority in terms of their cost build-up of water charges. One of the issues that we saw which is problematic in terms of their costing, is obviously the cost of raw water,” he said.
The online webinar was hosted by the Public Policy and Research Institute of Zimbabwe (PPRIZ) and focused on Zimbabwe Government Reductions of Licences, Permits and Fees: Opportunities and Risks for Business and Ordinary Citizens.
In an interview, Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter past vice-president and businessman, Mr Louis Herbst, reiterated Mr Ncube’s sentiments, adding that high rentals were also a challenge.
“The burden of high rentals and rates imposed by local authorities and landlords is a pressing concern for many businesses, potentially stifling growth and sustainability. While we acknowledge the authorities rely on these revenues to fund essential services and infrastructure, it’s crucial to strike a balance that supports both the business community and the broader community’s needs,” he said.
“A more nuanced approach could help foster a thriving local economy where businesses can flourish and still contribute to the region’s growth and well-being.”
He said a disjointed approach could inevitably have an adverse effect on the local economy, defeating the purpose and efforts of rehabilitating industry.
Bulawayo Chamber of SMEs vice-chairperson, Ms Sithabile Bhebhe, said most rentals charged by established property developers are beyond the reach of many, particularly the micro, small and medium-scale enterprises (MSMEs).
“Most premises in the central business district (CBD) are too expensive and a lot of shops have been closed as people move out due to high rentals. MSMEs are then forced to operate outside, where they are exposed to the vagaries of harsh weather,” she said.
A snap survey conducted by this publication revealed that rentals for shop space in the CBD now cost from US$200 for those who share, US$400 for small spaces, up to US$1 000 and beyond depending on the size of the space and where it’s located.
