adminBianca Mlilo Business Reporter
LOCAL authorities should consider leasing out premises of closed factories to small and medium enterprises (SMEs) in order to recover monies owed to them by the collapsed companies, a Cabinet minister has said. Local Government, Public Works and National Housing Minister, Saviour Kasukuwere, said last week that local authorities should utilise idle space to make money and support business ventures.
“Local authorities and SMEs should consider the utilisation of existing, abandoned industrial space by companies wanting to start ventures, particularly in the value addition field,” said Kasukuwere in a speech read on his behalf by his deputy, Christopher Chingosho in Bulawayo.
“Where a factory has closed down, the local authority is often owed large amounts in rates and service charges. I’m encouraging councils to consider redeeming their revenue by entering into arrangements with the owners whereby council would rent out space to SMEs.
“In this way council would recover its money at the same time creating business opportunities. In some cases council may have to take over the premises where the debt is huge.”
Kasukuwere said the SMEs sector has always played second fiddle to the formal sector in economic development but the decline of the latter and the boom of the former had demanded that new measures be implemented to ensure that small businesses thrive.
He said his ministry has sent a circular to all local authorities giving guidelines on how they should relate with the SMEs sector.
Among the guidelines is the need for local authorities to be creative and innovative in their bid to create space for the sector.
“Whilst I acknowledge that this is one sector that is highly democratised, association representatives shouldt turn themselves into space barons who’ve the temerity to confront authorities when they’re diligently discharging their duties,” said Kasukuwere.
derick.khumalo