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High rents price small traders out of partitioned shops

The
concerns
were
raised
on
Wednesday
during
a
city-wide
decongestion
consultative
meeting
organised
by
the
Bulawayo
Vendors
and
Traders
Association
(BVTA)
and
the
Bulawayo
Progressive
Residents
Association
(BPRA).

The
meeting
brought
together
residents,
informal
traders,
micro,
small
and
medium
enterprises
(MSMEs)
and
transport
operators
to
discuss
challenges
facing
the
informal
economy
and
urban
order.

MSMEs
Apex
Board
chairperson
Vincent
Donga
said
most
traders
cannot
afford
the
rentals
being
charged
for
partitioned
shops.

“The
partitioned
shops
are
not
bringing
anything
to
us
as
informal
traders.
They
are
there
to
kill
small
businesses
because
they
are
very
expensive,”
he
said.

“You
can
rent
a
partitioned
shop
today,
but
after
two
months
you
are
forced
to
go
back
to
the
street.”

Donga
said
traders
are
being
quoted
rentals
ranging
between
US$800
and
US$1,000
per
month,
figures
he
described
as
unrealistic
for
small-scale
operators.

“Even
if
they
were
meant
to
decongest
the
city,
look
at
how
expensive
they
are.
At
the
end
of
the
day
they
will
become
white
elephants,”
he
said.

He
added
that
poor
infrastructure
in
many
trading
areas
continues
to
expose
traders
to
harsh
weather
conditions.

“When
it’s
raining
we
don’t
sell.
When
it’s
hot,
it’s
usually
very
hot,”
he
said,
urging
traders
to
support
efforts
to
improve
sheds
and
infrastructure,
including
plans
linked
to
the
reopening
of
Fifth
Avenue.

Responding
to
the
concerns,
MSMEs
adviser
Dumisani
Ncube
said
government
was
aware
of
challenges
around
rental
charges
and
would
soon
move
to
review
the
rent
board.

“There
has
been
an
introduction
of
a
valuation-in-time
(VIT)
system
on
rentals,
which
will
give
us
information
on
how
people
are
being
charged,”
he
said.

“Very
soon
the
Minister
of
Industry
and
Commerce
is
going
to
revise
the
rent
board.
We
cannot
leave
people
to
exploit
others
while
government
is
there.”

However,
Ncube
said
one
of
the
obstacles
is
that
some
traders
do
not
disclose
the
actual
rents
they
pay,
making
it
difficult
for
authorities
to
act.

“When
people
come
to
collect
information,
you
hide
it,
yet
you
are
complaining
about
the
same
problem,”
he
said.

Ncube
alleged
that
some
large
shops
are
making
huge
profits
by
subdividing
and
subletting
their
premises.

“There
are
shops
that
used
to
pay
about
US$3,000
in
rent
but
are
now
making
as
much
as
US$75,000
after
partitioning
and
subletting,”
he
said.

He
also
warned
that
government
is
planning
tighter
regulation
of
public
transport
and
vending
as
part
of
efforts
to
restore
order
in
the
city.

“The
President
has
said
we
cannot
allow
more
lawlessness
to
continue,”
Ncube
said,
adding
that
councils
are
expected
to
be
granted
arresting
powers
in
future.

Bulawayo
has
in
recent
years
struggled
with
congestion
in
the
central
business
district,
driven
largely
by
the
rapid
growth
of
informal
trading
as
unemployment
remains
high.

City
authorities
and
trader
organisations
say
finding
affordable,
serviced
trading
spaces
is
key
to
balancing
livelihoods
with
urban
management.