Bulawayo’s partitioned shops boost BCC revenue by over 1 000%

Vusumuzi Dube, Online News Editor

THE rise of partitioned lettable shops in Bulawayo’s Central Business District (CBD) has led to a remarkable surge in revenue for the local authority with collections from these establishments increasing by over 800 percent in monthly rates and annual  licensing.

In response to this significant growth, the Bulawayo City Council (BCC) has revised its policy on lettable units in the CBD, expanding it to include the partitioned shops and outlining specific regulations regarding the types of goods and services permitted in designated areas within the city.

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

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

Early, this year, giant retail clothing firm, Edgars Stores Limited closed one of its prominent branches in Bulawayo, popularly known as Sales House, citing the need to secure an alternative location that suits its brand expectations amid pressure from illegal forex dealers and vendors.

After undergoing renovations, the building has been partitioned into 51 outlets of various sizes.

This just became the start of many such shops dotted around the CBD, a move that Bulawayo councillors initially frowned upon, with some councillors — by then — saying the proliferation of the lettable shops was compromising the city standards.

However, according to the latest council report, following a survey, by the local authority, they have since resolved to revise the policy encompassing the lettable shops after noting that they bring in increased revenue, beautify the urban outlook of the city and have gone a long way in offering employment and increasing the city’s Gross Domestic Product.

The local authority noted that before the establishment of lettable unit shops, the affected properties were only being billed commercial rates, however, with the establishment of lettable units there is a monthly levy that is billed in addition to the commercial rates.

“The establishment of lettable unit shops has contributed to the face-lift, revamping and re-development of dilapidated buildings in the city centre as indicated by data acquired from the Director of Housing and Community Services, Mr Dictor Khumalo.

“The city had its first policy that only allowed the establishment of lettable unit shops on areas bound by Sixth Avenue, Robert Mugabe Way, Fourth Avenue and Joshua Mqabuko Nyongolo Nkomo Street. 

“This policy was then reviewed due to the demand for lettable unit shops in the city to cover the whole city that is the Central Business District and all other commercial centres in the city,” reads the council report.

The local authority noted that from a town planning point of view, the establishment of the lettable unit shops has brought about the refurbishment of old and dilapidated buildings and the establishment of new buildings within the CBD, which has been a positive development as it brought about some element of a facelift in most of the buildings in the city.

“In summary, the lettable unit shops have brought about city renewal in the CBD, creation of employment and safe trading spaces, increased revenue base for council, uptake and occupation of vacant shops since most departmental stores are downsizing due to the demand of the economy for smaller trading spaces and vacant buildings are being refurbished and occupied.

“The existing policy has a set of conditions which are meant to guide its implementation and these conditions only require enforcement, however, the review of this policy seeks to limit the establishment of lettable unit shops to the areas bound by Leopold Takawira Avenue, Samuel Parirenyatwa Street, Masotsha Ndlovu Avenue and Lobengula Street and the suburban areas,” reads the report.

As part of the new policy, the minimum lettable unit shop size is seven square metres, the minimum height size for partitions, is two metres, aluminium glass partitioning is to be used and the size of the minimum corridor (traffic circulation) is to be set at two metres width.

The proprietors of the lettable shops are also expected to provide display shelves and counters within the units.

In terms of revenue collected the local authority noted a significant jump from the monthly commercial rates to also the yearly chargeable levies.

For the yearly inspections for licensing, one big/ anchor shop is charged US$143. However, for lettable unit shops its US$143 per unit.

The local authority gave an example of one lettable partitioned shop where the inspections for licensing revenue increased by 750 percent from US$143 to US$10 725.

Concerning the actual annual licensing revenue, the local authority will see an increase in the generation of up to 1 625 percent, with one anchor shop located along George Silundika Street now paying US$15 470 up from US$952.

“The establishment of lettable unit shops has led to the reduction in the number of illegal street vendors as they have opted to move from blocking pavements in the streets into the lettable unit shops.

“There has been an increase in revenue collection for the City of Bulawayo through licensing and increased revenue collection in terms of application fees for the processing of the establishment of lettable units, these include the application for development permits, submission fees for plan approval, inspection fees for health reports and inspection fees for construction,” reads the report.