Rental dispute leaves more than 40 SMEs in limbo

MORE than 40 Bulawayo small and medium enterprises (SMEs) have been left stranded for nearly three months after their operating premises at the National Railways of Zimbabwe were closed after they failed to pay rentals.

The SMEs, operating from the NRZ premises near the Bulawayo Railway Station along Basch Street and 13th Avenue Extension, have been at loggerheads with NRZ management, regarding the issue of payment of rentals.

However, the parastatal has hit back, noting that some tenants using the premises had developed a culture of not paying their rentals, even constantly ignoring notices which they got from NRZ.

Bulawayo Chamber of SMEs vice-chairperson, Ms Sithabile Bhebhe, expressed concern over the situation, saying prolonged closure of businesses threatens their viability.

“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.

“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,” she said.

Ms Bhebhe said the closure was being viewed by many operators as a form of sabotage due to a perceived lack of meaningful engagement and the many unanswered questions surrounding the issue.
She said the closure of the premises meant the SMEs were unable to make meaningful contributions to both provincial and national economic growth.
Despite having payment plans outlining how they intended to settle outstanding arrears, some business operators said they continued receiving rental bills while being denied access to their premises.

Mr Shadreck Ngozo, who runs a mechanical services SME, said the situation was untenable.
“We have not been operating for the past three months since our premises have been closed but we are expected to continue to pay rentals as we are being billed, how is that possible?

“The very same places where 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 business specialises in mining machinery repairs, said he had operated from the premises since 1999 and that the recent developments had significantly disrupted his operations.

“Since January this year, our bills started to come with figures we did not know where they were coming from. Upon inquiring with the offices, I 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 I have to clear the arrears.

“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,” he queried.

Mr Sibanda also questioned the consistency of the billing system, saying he received different account statements from three separate offices within the same organisation on the same day.

Some SMEs alleged that different NRZ officials visited them demanding payment of rentals, while others claimed some officers solicited bribes in exchange for reopening the premises.

Contacted for comment, NRZ spokesperson Mr Andrew Kunambura said the closures were part of a nationwide exercise targeting tenants who had defaulted on rental payments.

“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. Some did but others ignored it, hence the decision to take action against the defaulters,” he said.

“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.”