Old Mutual avails work space to SMEs

Oliver Kazunga, Senior Business Reporter
SMALL to Medium Enterprises (SMEs) in Bulawayo have secured work and display space from one of Old Mutual properties in the city.

The building from which the SMEs would be housed is available at OK Mart premises and covers 1,323 square metres.

SMEs Development Trust board member Energy Majazi said it took them more than a year to negotiate the deal with Old Mutual.

“We’re excited that as SMEs we’ve managed to secure the work and display space at Unit “2a” and “B” Ok Mart premises. It took us about one and half years to negotiate with Old Mutual over that place.

“This is because there’re a lot of issues taken into consideration by Old Mutual before they rent out their properties to tenants,” Majazi said.

“For example, they look at the tenant to find out if his or her business is legally registered as well as looking at aspects such as bank statements indicating a business’ financial statements.”

He said as SMEs they were glad that Old Mutual gave them special conditions thus making it flexible to rent the property at OK Mart.

Majazi said so far about 17 SMEs in different sectors among them clothing, printing and home décor have shown interest in occupying the rented space at Unit “2a” and “B”, which he said would be an SMEs centre.

“We’re appealing to our members to come and occupy the space available at Unit “2a” and “B” OK Mart. We would divide the building into two sectors namely work space and display section,” he said.

“The work section will be reserved as a workshop while the display section would serve as a showroom where products will be sold. The rentals excluding rates are pegged at $2,50 per square metre, which we think is reasonable and affordable.”

Majazi said SMEs were supposed to have occupied the complex at the beginning of last month but the uptake of space was still slow.

“We were supposed to have occupied the building on May 1 but we’re a bit disappointed that uptake of the space by SMEs is slow. We’re encouraging them to get either display or work space there so that their activities can be enhanced.

“In the past, we’ve heard complaints by some of the SMEs in the city that they don’t have work space or a place to display their finished products thus our idea to approach Old Mutual,” he said.

One of the challenges facing SMEs from occupying space at OK Mart, he said, was the liquidity crunch in the economy.

“We’re also appealing for credit lines that can be guaranteed by the government as you might be aware that one of the challenges facing SMEs is lack of funding. We would want a scenario where SMEs can secure credit lines guaranteed by the government,” he said.

He said this was against the background that the government has recognised the critical role played by SMEs in economic development.

Surveys indicate that 5,7 million people are employed in the SMEs sector with consequential contribution to poverty alleviation.

It is also believed that over $5 billion is circulating in the informal sector as the economy is now skewed towards the informal industry.

Taking into consideration the critical role played by the SMEs sector, the government last year announced that it was embarking on a formalisation programme of enterprises in the sector to enhance revenue collection to the fiscus.