ZIMBABWEAN businesses have applauded government’s move to constitute commercial and industrial premises rent boards saying this will go a long way in settling disputes over rentals between tenants and building owners.
The Industry and Commerce ministry announced last week that commercial and industrial premises rent boards for the southern and northern regions have been constituted and are now operational.
The boards’ mandate includes determining fair rentalsfor commercial and industrial properties.
In an interview yesterday, small and medium enterprises (SMEs) chamber chairperson Coustin Ngwenya said the move was long overdue.
“It was because the rent issue had become a thorny issue, particularly to the SMEs as this was enslaving the SMEs, the little profits that are being generated by SME businesses are gobbled by rentals.
“The property owners are charging unrealistic and unsustainable rentals which are hindering the growth of SME businesses hence we applaud the establishment of commercial and industrial rent boards.
“We believe this will bring sanity to the business sector directly and indirectly to the consumers as rent is one of the components of production costs.”
Ngwenya expressed hope that the development will bring positive results for business in Zimbabwe.
- Business welcomes commercial, industrial rent boards
Keep Reading
Busisa Moyo, Zimbabwe International Trade Fair board chairperson and United Refineries chief executive, said the boards were not new, adding that rental costs had become prohibitive.
He said landlords charging rentals exclusively in United States dollars were straining industrialists.
“Zimbabwe’s cost matrix needs to be looked at holistically and includes providers of factors of production,” Moyo said.
The Northern Region Commercial and Industrial Premises Rent Board covers Harare, Mashonaland East, Mashonaland West, Mashonaland Central, Manicaland and the Midlands provinces.
The Southern Region Commercial and Industrial Premises Rent Board covers Bulawayo, Masvingo, Matabeleland North and South provinces.
