adminBusiness Correspondent
THE Affirmative Action Group Manicaland chapter has voiced concern over high priced rentals in the Central Business District calling for regulation.
A snap survey by The Manica Post Business in the CBD in Mutare on Monday revealed that most of the major buildings are now literally empty with several vacant offices due to the high charges estimated to be between US$8-14 per square metre.
AAG Manicaland chairman Mr Fungai Chaeruka said there was need for regulation rather than the existing market regulated system.
“As AAG we have been calling for inclusivity and broad-based development for the success of the economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
“This basically means we all have a role to play, from the Small to Medium Enterprises to the street vendors.
“But in the wake of the unrealistic high priced office rentals most SMEs are being elbowed out of the CBD and forced to operate in cars or in their homes.
“If ZimAsset is to work we should regulate office rentals which are one of the biggest hurdles for business present day,” said Mr Chaeruka.
Mr Chaeruka said the continued evictions of local business people over issues to do with rentals would destroy Government’s empowerment drive.
In March Post Business revealed that there was high pricing of properties leased by some quasi-Government institutions in Mutare.
The properties of parastatals leased by the National Social Security Authority and TelOne were indicated to be among the most expensive in the city, despite the fact that they were constructed from public funds.
Lessee’s in the CBD offices at the TelOne Building like Heritage Insurance and Landmail Liaison Auctioneers (PVT) Ltd have since moved out citing high rentals estimated to be between US$11-14 per square meter.
The proprietor of the latest state-of-the-art building in the Mutare, Twin Towers, Mr Oliver Mapunga, said his property was in the CBD, but he charged reasonable rentals averaging between $7-$10 per square metre. One of the largest property investment managers in the country, Old Mutual, which owns First Mutual Centre in the CBD, charges between $7-$10 per square metre for their offices whilst at Dangamvura Shopping Complex they charge $2- $4 per square metre, which is reasonable.
Zimre’s Fidelity Cenre, another privately owned building, charges between $7-10 per square metre.
Business analyst Mr Takunda Mariga said a regulatory system was needed to steer development in the wake of ZimAsset.
Online Reporter
Moffat Mungazi