Online Reporter
Judith Phiri, [email protected]
OVER 40 Bulawayo small to medium enterprises (SMEs) have been left stranded for close to three months after their premises were closed over rental challenges, thereby affecting their production and operations.
The most affected are those operating at the National Railways of Zimbabwe (NRZ) premises near the Bulawayo Railway Station (Basch Street and 13th Avenue Extension) who have been at loggerheads with property owners over rentals and the state of the premises used.
Bulawayo Chamber of SMEs vice-chairperson, Ms Sithabile Bhebhe expressed disappointment over the situation, stating that lack of production quickly leads to insolvency, frustrated clients and long-term damage to brand reputation.
“Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Zimbabwe’s economy, accounting for over 60 percent of the Gross Domestic Product (GDP) and providing employment for more than 4,8 million people,” she said.
“With the Bulawayo SMEs facing closure and failing to operate for over three months for most of them, they are not generating any income, they are not able to take care of their families and at the same time they are losing their clients.”
Ms Bhebhe said the closure of premises was being viewed as sabotage without proper engagement with the SMEs amid speculative conclusions.
“This is opposed to the ‘Nyika inovakwa nevene vayo/Ilizwe Lakhiwa Ngabanikazi Balo’ philosophy, which calls for everyone, SMEs included, to have a deep-rooted belief in self-reliance, national pride and the empowerment of Zimbabweans to drive their country’s progress,” she said.
Despite having payment plans for the arrears, Mr Shadreck Ngozo who runs a mechanics SME, said they continue to be billed with their premises closed.
“We have not been operating for the past three months since our premises have been closed but we are expected to continue to paying rentals. How is that possible?
“The places we operate from to be able pay rentals are closed. Some of the charges we are getting are unjustified and we have receipts that show that we pay monthly rentals but we are still told that we are owing,” he said.
Mr Juweli Ernest Sibanda whose SME specialises in mining machinery repairs, said he has been operating from the premise since 1999 and recent closures have seriously affected his business.
“Since January these year, our bills started to come with figures we did not know they were coming from where. Upon inquiring with the offices, l was told that my rentals went up in 2022 from US$70 to US$81 excluding other charges like water and electricity. They are saying l have to clear the arrears,” he said.
“Why are we only being told that rentals went up four years later, why did they not notify us in 2022. Where have you seen a notice that comes four years later, these are all questions we have.”
Mr Sibanda said in 2011 they were made to renovate the premises at a cost of over US$1 700, but to date they have never been reimbursed the money.
Sharing the same sentiments, Mr Isaac Zulu who is into sewing of school uniforms and other clothing, said he was failing to account for what could have contributed to him having a statement that says he owes over US$10 000.
“There was a time when they came and said our cases have been handed over to the lawyers, l took all the rental receipts and documents l have to those lawyers. They also failed to account for the arrears stated,” he said.
“We agreed on a payment plan because we did not want to lose out on business, they came and opened for us but after a week they closed and said come up with another payment plan.
“There is a lot of confusion and we do not understand what is going on with their billing system.”
Contacted for comment, NRZ spokesperson Mr Andrew Kunambura said the closures were a result of a system-wide blitz targeted at non-paying tenants.
“The fact of the matter is that the NRZ launched a system-wide blitz targeting tenants that have not been paying rentals. We first gave them three months to come up with payment plans,” he said.
“Some did but others ignored it, hence the decision to take action against the defaulters.
“They cannot expect to keep working on NRZ premises without honouring rent obligations. Regarding bribe allegations against NRZ employees, we encourage the tenants to report any such act for disciplinary action and possible prosecution because bribery is a state crime.”
