Property owners partition buildings to accommodate SMEs

THE partitioning of buildings and warehouses is gaining momentum in Bulawayo and other cities as players in the real estate sector respond to growing demand for working space by the small to medium-scale enterprises.

The development is also creating good business for the construction sector and its supply chain through renovations and provision of building materials, which creates jobs.

Most buildings in the central business districts of cities and towns are now being converted into small cubicles, which are then leased out to interested occupants. The model buttresses the growing trend of shopping malls whose sizes differ depending on the location.

Integrated Properties chief executive officer, Mr Mike Juru, told Business Chronicle that the partitioning of buildings is in line with market trends that favour small to medium enterprises, which are contributing to inner city renewal.

He said globally, small-scale to medium enterprises are running most economies and businesses are now conducted on small spaces.

“Zimbabwe is fast catching on and most buildings are now being partitioned into small working spaces. We are witnessing a boom in the property sector,” he said. “Most corporates are moving out of central business districts paving way for SMEs players to occupy the spaces.

“What it means is that property owners are partitioning the buildings to accommodate SMEs. This is empowerment in the sense that the SMEs now have working space as rentals are much more affordable,” said Mr Juru.

“Secondly, in the construction value chain, builders are being hired to renovate buildings and partition the spaces. Added to that, suppliers of construction materials are able to sell their products.”

Mr Juru said the Government through the revenue collecting agency, the Zimbabwe Revenue Authority (Zimra) need to strengthen its tax collection systems to harness revenue from the growing SMEs sector.

Commenting, Bulawayo SMEs programme co-ordinator, Mr Nketha Mangoye Dlamini said the demand for working space was a sign of industry revival and SMEs are benefiting from decent working space.

He said the partitioning phenomenon is not only confined to the central business district but in the peripheries.

Zimbabwe Revenue Authority (Zimra)

“Big companies have closed and space has been left and almost idle. With the change of economy and smaller players coming into the equation, you realise that there is a different need for space,” he said.

“People need smaller manageable or economic space. The SMEs might not necessarily afford big spaces but if you partition a building they tend to come in” said Mr Dlamini.

He said SMEs are snapping up smaller spaces as some of them cannot afford huge upfront rentals for much bigger working spaces.

“We are seeing the proliferation of smaller players coming in as micro small medium enterprises into the economy and that size of a player does not need big spaces,” said Mr Dlamini.

“It could be a sign of industry growth but the most important factor is there is a kick-start to the growth of the industry.

“If you see SMEs occupying spaces, it indicates that people are interested in being part of the economy not only in the retail sector, there are players in manufacturing sector who are utilising small spaces.”

Bulawayo Vendors and Traders’ Association director Mr Michael Ndiweni said this was an indication that formal jobs keep on dwindling and a new economy was emerging.

Executive director of Bulawayo Vendors and Traders Association Mr Michael Ndiweni

“This is instructive because about 60 percent of the gross domestic product comes from the informal economy. It confirms that our economy is anchored on the informal sector and there is an expansion of the retail economy,” he said.

Mr Ndiweni said although vendors are benefiting by accessing working spaces, there is need for infrastructure revamping.

“The partitioned shops are very small with little ventilation and in light of this new economy we need to rethink on infrastructure.

“We need to utilise existing malls such as Nkulumane and Entumbane as they seem to be under-utilised.”-chronicle.cl.zw