Lettable shops boom as formal businesses crumble
Providence Moyo
The once-grand Central Business District (CBD) of Bulawayo is undergoing a dramatic transformation, driven by a worrying trend: the rampant rise of lettable shops. These small, rented spaces, carved out of apartments and buildings, are replacing established formal businesses, raising concerns among economists, retailers, and even city officials.
Regionald Shoko, an economist interviewed by Community Podium, paints a grim picture. He sees the lettable shop phenomenon as a symptom of Zimbabwe’s deeply informal economy, “a confirmation that 70% of our activity happens outside formal structures.” This, he warns, leads to “loss of employment, tax revenue, and ultimately, a weaker national economy.”
Denford Mutashu, President of the Zimbabwe Confederation of Retailers, blames the high cost of doing business. “Formal shops struggle with exorbitant license fees, parking charges, and taxes,” he explains, “while these lettable shops operate under the radar, creating an uneven playing field.”
The concerns go beyond economics. An unnamed councillor expresses fear of increased criminal activity due to the “strict monitoring” challenges and the potential use of these shops for “drug dealing.”
However, Bulawayo City Council maintains they have regulations in place for lettable shops, claiming they are “legal structures.” But the reality on the ground tells a different story. Iconic landmarks like Edgars and Galaxy Cash & Carry are being carved up, while buildings like Auto-Qiuip and Centenary are undergoing similar transformations. Even Express Value Added (EVA) has moved out, its space now divided into rented units.
The story doesn’t end there. Shop owners within these lettable structures reportedly charge exorbitant rents, ranging from $200 to $800 USD per month, further squeezing the already struggling formal businesses.
This trend exposes deep-seated issues in Bulawayo’s economy. The dominance of informality, the high cost of formal business, and lax regulations paint a complex picture. While the City Council claims legality, the lived experience reveals a different reality. As formal businesses crumble, questions loom large: Can Bulawayo find a sustainable balance between formality and informality? Can regulations be effectively enforced? And most importantly, what will this transformation mean for the future of the city and its residents?
