The Zambia Institute of Estate Agents says it is deeply concerned with current trend by landlords and property developers charging rentals in US dollars.
The Institute said this situation has caused serious difficulties amongst the business community.
Institute President Saul Kiwempindi said the hedging against Kwacha depreciation and uncertainty of future currency trends should not be shifted or be shouldered by tenants alone.
‘ZIEA is deeply concerned with current trend by landlords and property developers charging rentals in US Dollars. The current economic difficulties we are experiencing are caused by the regular depreciation factors among them the decline in the demand for our major export and therefore we need to bare and share the burden collectively,’ Dr Kiwempindi said.
Dr Kiwempindi said commercial and some residential tenants are having difficulties raising rentals that have increased in Kwacha terms due to the dollarization.
‘The dollarization of the rentals is stifling the economy and defeating government efforts to stabilize the economy. ZIEA understood the consequences of SI 33 and its revocation, however, it is time to bring to the attention of government the likely consequences of dollarization of rentals,’ he said.
Dr Kiwempindi said, ‘If the private sector is overburdened by high rentals due to dollarization government will not meet its targets in terms of revenue collections and ultimately fail to meet its obligations. ZIEA is calling upon government through Ministry of Finance, Ministry of Trade and Commerce and other related departments to critically examine this situation with the urgency it deserves.’
He said the Institute proposes a subsidiary legislation to deal with aspect of commercial rentals to enable the private sector continue operating in this current situation and emerge out of it without disturbance.
He said in some cases, the rentals have gone up between 50% to 100% while in other cases it is beyond 100%.
Dr Kiwempindi said the Institute believes that this situation is unacceptable in an economy which is suffering severe external factors beyond our control.
He said the dollarization of the rentals is stifling the economy and defeating government efforts to stabilize the economy.
‘Furthermore, we call upon property developers and landlords to seek the understanding of the current economic situation to be able to make informed decisions that will not harm the economy further.’
‘It is the concerted efforts of individuals and government that will allow the country emerge economically strong and therefore we appeal to property developers and landlords not to hedge against uncertainties by overburdening their tenants,’ he said.
This dollar story has been blown out of proportion. Even b*tches are now quoting in dollars for a deep.
Please Edgar can you nationalise these buildings where owners are charging in dollars? If they have failed let them hand over these properties to the government of ECL full stop.