Online Reporter
Sikhulekelani Moyo, [email protected]
The Ministry of Women Affairs, Community, Small and Medium Enterprises Development is engaging Old Mutual and other stakeholders to find an amicable solution following the closure of the OK Mart SME Centre in Bulawayo over rental arrears.
The closure of the OK Mart SME Centre left about 60 small enterprises without workspace. Chairperson of the
National Micro, Small and Medium Enterprises (MSME) Advisory Council, Mr Dumisani Ncube, said the closure was linked to unpaid rentals by tenants.
The centre was refurbished through a partnership between the International Labour Organisation (ILO), Old Mutual, Bulawayo City Council and other stakeholders.
“What happened with the Old Mutual issue is that there was an agreement between the ILO and our ministry that we were supposed to refurbish the SME centre and it was refurbished indeed,” Mr Ncube said.
“The SMEs, in return, were supposed to be paying rentals. Unfortunately, the information that we are gathering is that the rent was not paid fully by the tenants, which also led to shortfalls in terms of rentals.”
The OK Mart SMEs Centre, which housed about 60 SMEs, was closed a few weeks ago, leaving the occupants struggling to get proper workspace.
Mr Ncube said leadership delays in reporting the matter to the ministry also contributed to the accumulation of debt.
“Yes, it could have been the issue of leadership that delayed acting and informing the ministry in good time, which led to the accumulation of these funds,” he said.
Mr Ncube said the Permanent Secretary, directors and the Minister were seized with the matter, adding that after the ongoing SMEs Indaba in Harare, they are going to look into the issue.
He added that the ministry has already started engagement efforts.
“We have tried to phone Old Mutual so that we have a meeting to resolve the issue.We hope it will be a win-win situation,” said Mr Ncube.
He said the Minister of State for Bulawayo Province, Cde Judith Ncube, who is passionate about SMEs, is also seized with the matter.
Mr Ncube further revealed that a similar challenge had affected the SMEs that operate at the NRZ facility that are failing to pay rent.
“At NRZ, the SMEs are failing to pay rent because of low business and we have since engaged NRZ and they agreed to a payment plan. The facility has since been reopened,” said Mr Ncube.
The OK Mart SME Centre was renovated a few years ago to provide affordable workspace and shared machinery for small businesses in Bulawayo.
Mr Ncube said the ministry will come up with a workable solution after internal consultations.
Bongani Ndlovu