Maravi

(TALKZIMBABWE) Mining projects push rentals up

Mining projects push rentals up
SPA
Thu, 04 Dec 2008 22:38:00 +0000

PROPERTY values in Zimbabwe's Midland Province towns of Gweru and Shurugwi are soaring in response to an upsurge in chrome, gold and platinum mining by Anglo American Corporation (AAC) and Chinese syndicates exploring for gold and chrome.

The new and old mining activities in the province have forced landlords to quote their properties for sale or high rentals in foreign currency, especially US Dollars, South African Rand and Botswana Pula. Economic analyst and businessman Trust Chikohora says the boom in the value of property is due to rising demand for accommodation and a shortage of housing in the sleepy towns of Gweru and Shurugwi.

Chikohora says construction of a chrome refinery in Gweru by a Chinese company is nearing completion and that demand for workers' accommodation will be difficult to satisfy.

The Midlands Province has received the most investment as it is richly endowed with gold, diamonds, coal and strategic minerals in high demand in China and India.

Beijing and Harare have signed agreements under which Zimbabwe will supply China with minerals while Zimbabwe will receive military hardware, food, clothing, electrical appliances and farming implements from China.

As a result, Zimbabweans eager to reap the benefits of increased property rates and rentals are moving out of their homes to stay in high-density ghettos or in the rural areas.

A Gweru housewife, Martha Mushipe, says she has been forced to vacate her rented house in Daylesford to make way for a Chinese miner who offered a higher rental in American dollars. Indications are that more property owners will offer their houses to tenants able to pay in foreign currency.

Gweru and Shurugwi workers who cannot find accommodation resent their better-paid colleagues on the new mining projects who go around waving wads of cash in foreign currency to attract the attention of potential landlords.

*With foreign exchange, almost everything is now available on Zimbabwe's parallel black market at double or thrice prices obtaining in neighbouring countries, particularly Botswana, South Africa and Zambia. – SPA

Labels: MINING, ZIMBABWE

posted by MrK @ 5:02 PM