By A Correspondent- The Confederation of Zimbabwe Retailers (CZR) has thrown its full weight behind efforts by the Real Estate Institute of Zimbabwe (REIZ) to have its members exempted from the lockdown.
CZR’s forthright president, Mr Denford Mutashu, gave his thumbs up to REIZ’s application for exemption, submitted through the Ministry of Industry and Commerce on January 11, 2021.
Mr Mutashu said the Confederation acknowledges the important role played by the real estate sector in managing and maintaining properties that house the majority of retail outlets nationwide to ensure that they have essential utilities, amongst them, water and electricity and that elevators and ablution facilities, are also functional.
“In light of their key role, and informed by fact, we gladly recommend that the real estate sector, through its line associations, be recognised as an essential economic service,” he wrote in his letter of supported dated January 8, 2021.
“We are satisfied with the measures they have put in place to combat the spread of Covid-19 in Zimbabwe’s retail space,” he continued.
Early this month, the Government introduced a hard lockdown on the local economy to last 30 days, through Statutory Instrument (SI) 10 of 2021.
The lockdown, which took effect from January 5, exempts industries such as mining, agriculture, manufacturing, hospitality, ICTs, and health.
In terms of SI 10 of 2021, there is room for those deemed to be non-essential services to appeal by submitting applications for exemption.
As a result, the real estate sector, through REIZ, lodged a comprehensive application for exemption through the Ministry of Industry and Commerce, which is yet to be responded to.
REIZ president, Mr Alexander Millin, made the point that the real estate sector had not been designated as an essential service despite fitting perfectly into government’s definition of professionals and artisan services that are vital in providing Covid-19 support.
He argued that the sector is an integral part of all the essential services that function within a built environment supported by the real estate secto.
“It is for this and other reasons that we are making a passionate appeal to the Ministry of Industry and Commerce to be exempted from the lockdown…,” said Mr Millin.
The real estate sector in Zimbabwe employs over 100,000 workers, with the construction sector alone being home to 30,000 wage and salaried jobs, including 20,000 self-employed. It also contributes substantial revenues to the fiscus through various tax heads such as capital gains tax, property tax, Value Added Tax, presumptive tax, income tax and Pay As You Earn.
REIZ also felt that shutting down the sector would choke financial inflows that benefit pensioners while also depriving the whole economy of long-term funding for capital projects and investments needed for economic growth and development. The basis for this is that Zimbabwe’s elderly population accounts for 6% of the population, of which a sizeable chunk are reliant on Pension Funds for income, which pensions Funds depend, to a large extent, on the real estate sector for income.
“The real estate sector is a trusted store of value and any shut-down for periods in excess of two weeks will leave property owners and managers facing heavy repair and maintenance bills.
“Industries designated as essential services require the services of valuers to provide valuation services for their movable and immovable properties, which reports are critical in making strategic and operating decisions. The same applies for other professionals such as architects, engineers, and surveyors etc. who support the built environment;
“The shutdown has opened a window of opportunity to bogus agents that are on the loose, fleecing unsuspecting and desperate clients of their hard-earned income under the guise of delivering a service that would never materialise.
“These bogus agents know neither rule, nor regulations and are blind to the consequences that arise if they don’t abide by Covid-19 regulations. The only way to stop them and protect members of the public from being exposed to Covid-19 and losing their hard-earned income is to allow professional and registered agents to open their doors, self-regulate and give room to the law to provide additional cover to all concerned,” REIZ said.
As it is, realtors have been disabled from managing and maintaining shopping centres, industrial complexes, office complexes, hotel buildings and lodges, medical centres, and apartments for clients that are designated as essential services.
This presents challenges in ensuring availability of utilities such as water, electricity, thus posing health risks to their staff and their clients. It also makes it difficult for property managers to collect rent, carry out repair and maintenance, especially of elevators, air and conditioning units.
Millin concluded thus; “We therefore strongly feel that this document has laid a solid foundation for the real estate sector to be granted the exemption that it desperately seeks. The exemption can be issued to member associations, such as REIZ, and regulatory organs such as EACZ for distribution to bona-fide members. The full list of organisations is listed above”.
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