Businesses desert Bulawayo's CBD

A NUMBER of businesses once housed in buildings in Bulawayo's Central Business District have either closed or relocated to suburban locations because of increasing rentals and lack of business. A survey by Sunday Business discovered that most building were now empty with officials saying they were operating from suburban areas.

"Certain businesses such as restaurants, surgeries and offices now prefer suburban locations. The main advantage is the low rentals compared to CBD locations but even better is the conducive environment. There are well kept gardens and easy parking. In the case of restaurants you have a choice of sitting inside or outside. The business zone is extending into suburbs," said Estate Agents Council chairman, Mr Oswald Nyakunika.

Sunday Business discovered that most of the affected shops used to house clothing, butchery and furniture businesses.

Along Jason Moyo Street, a number of buildings have no tenants, namely the giant R Chitrin Building and FW Woolworths building.

In the same streets, the building which used to house Interfin Bank is fast becoming an eyesore after the bank closed down some years ago.

A stationery and boutique shop, Trish Stationery and Boutique, which also used to operate opposite the bank, has also closed shop.

The Gold Print building is also fast deteriorating after the business collapsed. A boutique named Madonna Boutique, which used to operate from there, also closed down last year.

Mr Nyakunika said rentals were the main reason businesspeople were vacating the premises.

"The rentals have been a major issue which has driven many businesses out of the CBD and out of many buildings. There is increased demand for rent reduction or rent freeze. Our advice has been for landlords to retain current rentals and defer rent reviews. The other alternative is to link rentals to business performance by charging turnover rentals where this is convenient," said Mr Nyakunika.

Affirmative Action Group vice-president Mr Sam Ncube also added that exorbitant rentals were pushing most businesses out of the CDB.

"It's really sad. The problem is that the property owners in the CBD are charging very exorbitant rentals. The economy is being run by the SMEs and it is the industry that is creating employment but what is worrying is that rentals are pushing them out of business," he said.

He also blasted the property owners for not being sensitive to the plight of business.

"They pick up one person and when that person moves out, they put another one. We need that to be addressed. You can't live rich and be surrounded by the poor. The landlords should have an obligation to serve the people. They are there for citizens not for themselves," said Mr Ncube.

It is now common in Bulawayo to see many businesspeople dealing in totally different goods and services sharing one shop in a bid to reduce rental costs.

In one shop visited by the Sunday Business last week there were five totally different businesses sharing a small shop.

In the corner of the overcrowded shop was a hair salon and on other corner was someone running a boutique.

A computer technician was just close to the main entrance while a mobile cash transfer agent and cellphones dealer were also operating at the centre of the shop.

"There is no business here, that's why we are moving out. We can't even pay the rent let alone pay workers. I was paying $300 for the small space," said Mr Jones Harris, a computer dealer.

Another boutique operator, Mrs Siboniso Mlambo, said they started recording low business in December, a month which they traditionally have  lots of customers.

"We thought we were going to have better business during the last festive season but most people lost their jobs so there was no business," said the businesswoman.

A visit to Nkulumane Shopping Complex by this paper revealed that most businesses had moved out with only Choppies and OK supermarkets still operating there.

A number of pentecostal churches are taking over most of the vacant premises left by companies that shut down, converting them into places of worship.

Mr Nyakunika said many churches were taking over the factories after they were left unoccupied by closed companies.

"From a town planning point of view this activity is acceptable in those areas. In an open market situation it is all about competing uses and whoever is able to pay more wins the day. Industrial properties are suitable for churches because their demand for large spaces can be met and the rentals are affordable to them. The spaces are available because a number of factories have folded. The manufacturing sector is suffering from cheap imports and they are failing to compete. Our machinery is old and our labour is very expensive," said Mr Nyakunika.

At least 25 000 workers have been left jobless in the second largest city over the past three years following the shutting down of over 100 firms, mostly in the textile and clothing sector.

The closure of shops and offices in the city is contributing to the number of unutilised and abandoned buildings that litter the city.

The city council is also reportedly losing thousands of dollars as it is failing to collect revenue from the abandoned buildings in the CBD.

Some of the buildings have become old, dilapidated and in urgent need of renovation.

The City Fathers are in a quandary on how best to solve the problem as previous efforts to force the property owners to renovate the properties has proved futile.