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Rentals range between US$1 000 and US$5 000 with some shop owners demanding about six-months’ rentals in advance.
It is understood that prospective shop tenants are charged between US$30 000 and US$50 000 as goodwill.
In separate interviews at the weekend, the groups said shop space rentals are beyond the reach of many local business people.
They blamed the high cost of shop space on foreigners whom they accuse of pushing them out of business because they have the means to raise the rentals.
Industry and Commerce Minister, Welshman Ncube said his ministry had not received formal representations on the challenges locals are facing.
“They should come to my ministry, we have a department of Domestic Trade, Research and Consumer Affairs that deals with issues such as rentals,” said Minister Ncube.
“If anyone is not happy with rentals and they want a policy shift, they should come to us with recommendations.”
The empowerment groups said foreigners were now getting first preference ahead of locals because of their fat purses in the process frustrating the indigenisation exercise.
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“Government should come in and help the locals by putting legislation that will regulate rentals for urban office space because our people are being pushed out of business due to these rentals,” Zimbabwe Entrepreneur Youth Association (Zeya) president Mr Allen Kaseke said.
“It is unfortunate that foreigners continue to do business in areas that have been reserved for indigenous Zimbabweans under the indigenisation and economic empowerment law.
“For instance, we have Chinese owning restaurants here when the law is clear that those areas are for indigenous Zimbabweans.”
Without Government intervention, Mr Kaseke said, most local retailers were going to find it difficult to do business in Zimbabwe.
Upfumi Kuvadiki president Mr Scott Sakupwanya said the indigenisation drive would not be successful if shop space rentals were not regulated.
“Indigenisation is under threat because if those areas that are reserved for locals are not affordable for the intended beneficiaries then foreigners will benefit.
“At the moment our people cannot afford those rentals but foreigners can. It is therefore prudent that Government comes in to protect its citizens by regulating the rentals,” he said.
Mr Sakupwanya said foreigners were supposed to go into manufacturing as prescribed by the law.
Some economic analysts said foreigners afforded the high rentals because they did other enterprises than just selling goods in their shops.
“It is very possible that these foreigners are selling things like drugs because one cannot pay US$30 000 as goodwill when they are just selling things like weaves or cheap phones.
“I believe these shops are just used as fronts yet they will be up to some illegal enterprises. It is important for the responsible authorities to investigate how these foreigners pay such high rentals when they sell cheap things,” said a source.
Another one added: “The fact that foreigners can pay high rentals yet their products are cheap is a clear indication that they could be smuggling their wares into the country and thus can afford to pay such rentals because they would not have paid duty.
“If they don’t smuggle then they could be doing other businesses besides running those shops which calls for further investigations.”
Online Reporter