Economist Trevor Hambayi has raised alarm with […]

Economist Trevor Hambayi has raised alarm with the lack of enforcement of the Rent Act and Landlord and Tenants (Business) Act, which cover protection against unjustified evictions and hikes in rentals. Stakeholders have observed that despite a law that dictates the housing and real estate market, most of it is unenforced, particularly the initiation of the Rent Control Board.

Speaking in an interview with the Zambian Business Times—ZBT, Hambayi observed that due to the unpredictability of the business environment, most SMEs struggle to pay for rentals and sometimes face unlawful evictions, ultimately affecting their business ambitions.

“The issue of rentals is a pertinent issue that has attracted a wide debate, especially over evictions and unjustified increases of rentals; the government should align the legal framework for it to be able to accommodate the SMEs,” he added.

 Hambayi observed that most of the grievances end up being unsolved because the disputes require seeking a traditional court, which can be slow and often expensive for a startup business. Despite the Landlord and Tenant Act allowing for requests of new leases and protection of small shops from sudden and disruptive evictions, the enforcement is worrying.

“The regulatory framework is not favorable to SMEs, firstly because they do not have the resources to be able to take the issues before court; it takes a long time for a court to pass judgment, and thirdly, it is difficult to enforce the law.”

Meanwhile, Hambayi revealed that most of the SMEs are facing struggles with invoicing, which often leads to late payments and ultimately affects the progression of the ventures. “This has affected many SMEs, and the issue starts from sectors such as invoicing. Most of the SMEs suffer issues of not being paid on time; they can’t take such to court because they might lose the contract and the issue around how long it will take.”

 He called on the government to ensure that the legal framework in terms of the two aforementioned Act is well aligned to the needs of the SMEs and protects them from undue eviction.

By Samuel Mutale