Grant Final
Grant Final
BY
Project Submitted to The Department of Landscape Architecture and Urban Design in Partial
Fulfilment for the BSc Honours Degree in Property Development and Estate Management in the
Faculty of the Built Environment at the National University Of Science And Technology.
JULY 2020
BULAWAYO
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DECLARATION
I Tatenda Girandi, declare that work described in this thesis was carried out in the department of Built
Environment at NUST from June to August. The student carried out the survey at Belmont .This work
represents my own work and has not been reproduced from some ones work. Where use has been made of
the work of others, it has been duly acknowledged in the text.
……………………………… …………………………
Signature of Student Date
……………………………… …………………………..
Supervisor Date
………………………….. ……………………………
Chairperson Date
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ACKNOWLEDGEMENTS
I would like to give special thanks to my course supervisor, Lecturer, DR Chigwenya, in the
Faculty Built Environment, Department of Landscape Architecture And Urban Design, National University
of Science And Technology, who guided me with his kind help to complete this thesis. Moreover, I would
like to convey my best regards to all the employees of the Bulawayo City Council who have helped me directly
or indirectly during my research.
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ABSTRACT
The underutilization of industrial properties in Zimbabwe, which has been a major worry for the real world
and the national economy, was the subject of the study. Resources have been shifted from high to low
productivity sectors, and the economy is becoming increasingly information-based. Utilization of industrial
capacity declined significantly. The analysis pinpointed the region where underuse of industrial properties has
had a significant impact. A sample location was chosen upon: Belmont. Additionally noticed were the
activities that are present, the challenges that are being faced, and the operation percentage.
The majority of the assets in the industrial area are underutilized because they are occupied by the informal
sector, which contributes very little to the GDP and causes industrial machinery and buildings to deteriorate.
The research also identifies other factors that contributed to Zimbabwe's deindustrialization, including lack of
access to finance, a lack of raw materials, a lack of skilled labour, outdated technology, and obsolete machinery
and equipment. The government's current implementation measures, including as import substitution, lending
to businesses, infrastructure enhancement, adjusting the indigenization policy, and Special Economic Zone
program implementation, were also noted. The report also made recommendations that will allow Zimbabwe's
industrial properties to be used to their maximum potential.
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TABLE OF CONTENTS
1.1.Background Information……………………………………………………………………………..1
1.3Background of Bulawayo……………………………………………………………………..3
2.2.Industrial properties.......................................................................................................................6
2.3.Abandoned properties.....................................................................................................................11
2.5.Urban Morphology...................................................................................................................... 16
3.5.2.Sampling technique……………………………………………………………………….37
3.10.Qauntitative research………………………………………………………………………..38
3.16. Conclusion………………………………………………………………………………….44
4.0. Introduction…………………………………………………………………………………...45
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5.1. Discussion……………………………………………………………………………………..69
5.2. Conclusions……………………………………………………………………………………..71
5.4. Recommendations………………………………………………………………………………72
REFERENCES……………………………………………………………………………………….70
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TABLE OF CONTENTS
Table 2. 1:Activites of General Industry ......................................................................... ……….9
Table 4.5.4: rate of the current product capacity utilisation of the industries .........................................53
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LIST OF FIGURES
Figure 1. 1: Research area. The blue circles showing the exact location. Google Maps. 2018. 3
Figure 2. 1: Showing the zones that are to be in an industrial area: source: Local plan number
8................................................................................................................................................ 6
Figure 2. 2: Showing the main activities that are carried in a special Industry. Source: local
Figure 2. 4: Shows a list of activities carried out in a service industry. Source: local plan
number 8. ................................................................................................................................. 9
Figure 2. 5: Shows a list of activities not included in the light industry group. Source: local
Figure 2. 6: Central Place Theory. Source: Le Roux . 2015. Cited in Beavon (1977, p.29). An exploration of
the role of waterfront development in urban regeneration: Mossel Bay as case
study. ........................................................................................................................................ 15
Figure 2. 7: Agglomeration Benefits. Source: Le Roux. 2015, p. 14. As cited in Weber, 1929,
p.133......................................................................................................................................... 16
Figure 2.8: The Concentric Model. Source: Jamal, H. 2017. Concentric Zone Model Theory and Its
Limitations. .................................................................................................................. 19
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Figure 4.3.1:Pie Chart showing Light Induatrial firms.............................................. 48
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LIST OF APPENDICES
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LIST OF ABBREVIATIONS
BCC…………………………………………. Bulawayo City Council
CIFOZ……………………………………… Construction Industry Federation of
Zimbabwe
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CHAPTER ONE: INTRODUCTION
1.0 INTRODUCTION
Bulawayo was built from the ground up with pride and delight. The soil was given life and grew into a place
where our forefathers could be proud. Banks and industries sprang from the construction of structures. The
industrial locations were connected by all routes. The goal was to build a world-class industrial metropolis.
The industrial metropolis was built to accommodate a diverse range of nationalities, including British,
Mozambicans, Zambians, South Africans, Malawians, and Zimbabweans. The city of Bulawayo was
beautifully constructed, but the entire infrastructure, including industrial buildings, began to crumble one by
one. The sector appeared to be infected with a terrible virus that was wiping out all of Bulawayo's industrial
sites, similar to the Ebola virus. Madonko (2016) said that Bulawayo was originally regarded as the industrial
heart of Zimbabwe and, to a greater extent, Southern Africa. However, Zimbabwe's second largest city
currently has sights of devastation and abandonment. Bulawayo's industry is basically non-existent today.
According to Google Earth's geographic information, Belmont is located in Bulawayo Urban, Bulawayo,
Zimbabwe, and its original name with diacritics is Belmont. This is the research's main focus area, and it will
reveal the consequences and reasons of the worrisome underutilization of industrial properties in Belmont,
Bulawayo.
The motivation for this initiative stems from the fact that the diminishing growth of the Belmont sector has
become a source of concern for all nationals in recent decades. According to a research by Old Mutual
Securities analyst Mangwendeza (2018), the main Industrial Index of the Zimbabwe Stock Exchange (ZSE)
suffered a significant loss in the first quarter of 2018, following a negative return in the previous quarter 0f
2017. This bad trend has prompted scholars to look into the origins and consequences of underutilized
industrial sites. The property industry is a critical component in rebuilding the country's economy, and it helps
businesses by figuring out how to make things happen.
What sets them apart from competitors that supply identical goods and services might boost the company's
market value .This research project examines the impact of underutilized industrial assets in Bulawayo on the
real estate business. It will also present a conceptual framework for dealing with restrictions and what could
differentiate them from others that offer similar products and services can raise the company‘s market value .
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1.1 Background Information
International Monetary Fund (1997, p. 7), Deindustrialisation began in earnest as early as the mid-1960s in
the United States and it has experienced one of the steepest declines in the share of employment from 28% in
1965 to 16% in 1994. In Japan, in contrast the share of manufacturing employment began declining later and
has fallen less precipitously than in the United States from 27.4% in 1973to 23% in 1994. The share of
manufacturing employment was comparatively high in 1970 a bit over 30% in the combined European Union
countries but the decline since then has been steep and only 20% of total civilian employment of this group
were in manufacturing in 1994. The IMF used the employment as one of the core indicators of
deindustrialization in advanced economies. A sharp decline of manufacturing employment facilitates the
commencement of deindustrialization in these developed worlds.
Rowthorn and Ramaswamy (1997) Deindustrialization has also varied in timing and in extent among the
advanced economies of East Asia. In both Korea and Taiwan Province of China, it began in the mid-1980s
after their per capita incomes surpassed the levels achieved by the "old" industrial countries in the early 1970s.
In Hong Kong, China, the share of employment in manufacturing reached nearly 45 percent in the mid-1970s
but has fallen continuously ever since to little more than 20 percent by 1993. In Singapore, there has been no
clear-cut pattern, with manufacturing employment ranging between 25 percent and 30 percent since the early
1970s . The United Kingdom has also experienced deindustrialization that is the manufacturing sector
Pettinger, T (2017) as a share of real GDP has fallen from 33% in 1970 to 12% in 2010, creating more
underutilized industries therefore wasting more resources.
Kanyane (2017) describes the rate of utilization of industrial properties with reference to the manufacturing
sectors, The rate of capacity underutilization in the manufacturing sector is usually high in Africa. For
example, a study of 7 African economies shows that capacity underutilization rate in some of these economies
was very high. In Sudan, in some sectors, over 90% of installed capacity remained idle for some years and
Dagdevrien and Mahran (2010: 501) further highlighted that capacity underutilization was prevalent in about
85% of all factories on the largest industrial estate in Khartoum North, this was obtained through a survey.
Underutilization of industrial properties has been one of the depressing issues and current key problems faced
by African countries. An interesting view was expressed by Smith (2018); insufficient demand remains by far
the biggest reason for the under-utilization of capacity by large manufacturers in South Africa . The Southern
part of Africa, are as greatly affected and experience the underutilization of industrial properties.
The report prepared by the United Nations Economic Commission for Africa‘s Southern Africa was discussed
the following points, In general, Southern African countries have transformed their economies but at diverse,
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and unsatisfactory rates. The pace of transformation has been very slow, compared to developing countries in
other regions like Brazil, Malaysia and South Korea. Even more disturbing is the observation that the SADC
region was virtually at a standstill between 1980 and 1990, with no change in its industrial structure during
that decade. Slight improvements were observed in 2000 and 2010, although there has been stagnation in the
sub region since 2000. The manufacturing sector performance of the region has been and continues to be weak,
compared to that of developing countries. Ndlela and Robinson (1995) highlighted that by the 1940s,
Zimbabwe already had a relatively developed industrial base, with the only integrated iron and steel plant in
subSaharan Africa. Further they outlined that the advent of independence, industry already consisted of some
1,260 separate units producing 7,000 different products.
Ndlela and Robinson, (1995) also further highlighted that, The manufacturing sector did not respond positively
to the reforms, as evidenced by its decline. Activity declined during the Economic Structural Adjustment
Programme (ESAP) period as competition from imports intensified, amid static domestic demand attributed
to labour lay-offs. The situation was further exacerbated by a severe drought experienced during the 1991 and
1992 period. Production volumes declined, due to the sharp fall in incomes at a time that firms also had to
contend with erratic electricity and water supplies. Various researchers, reporters and authors of newspaper
and government articles that includes the SA mag, Bulawayo24 reporter (2017) and Harare24 news reporter,
they emphasized the current state of industries as they stated that, the manufacturing sector contribution to the
GDP therefore declined. Bulawayo has traditionally been the industrial hub of the country with textile, tyre
manufacturing, and food processing, leather industries, heavy and light engineering industries based in the
City among others. Once the country‘s industrial hub, Bulawayo has suffered chronic deindustrialization
effects over the past two decades with over 100 firms mostly in the manufacturing, textile and clothing sectors
closing down and leaving thousands of workers jobless .
According to Munyaka (2014), Even the former President Robert Mugabe has admitted to the magnitude of
the problem, our cities are dying. Bulawayo was once a thriving industrial hub but it has become a sorry
industrial scrapyard‘ he said during his inauguration in Harare in 2013 . In fact, the industrial sector is the
worst performing sectors in Bulawayo. No manufacturing industry and high levels of underutilization of
industrial properties in a city, is a major stumbling block to the industry.
This study seeks to investigate the underutilization of industrial properties in Zimbabwe in particular
Bulawayo in order to have deep insights in the whole process and come up with policy recommendations for
growth.
The study will be conducted in the second largest city of Zimbabwe which used to be an industrial hub of the
country as shown in Figure 1, Belmont is the original name. The place is situated in Bulawayo. According to
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Maplandia (2018), the geographical coordinates are 20° 10' 18" South, 28° 34' 17" East . Raylton, Donnington
and Westgate are the neighbouring industrial sites according to the proposed Bulawayo City Council master
plan. Figure 1. 1:
Figure 1.1 Research area. The blue circles showing the exact location. Google Maps. 2018.
Bulawayo was colonised on the 4th November 1893. On that day it ceased to be kingdom it became part of
the colonial Rhodesia. Bulawayo was part of the new era. The 3c‘s were starting to take form. It was now
Colonised, Christianity was on the rise even though it had faced challenges in its early days in the Kingdom.
Most importantly it was about to turn into a hub of Commerce. Bulawayo transformed over the ages from a
Ndebele Kingdom to a boisterous hub of commerce, a railway line was built and it was so filled with industries
that spewed smoke into air and it was turned into industrial haven. This marked the beginning of a new life in
Bulawayo. The name Kothuntu ziyathunqa‘ was given to Bulawayo. My Bulawayo (2016), a kingdom of the
Matebele was now the Kingdom of steel, smoke and innovation. During this time Bulawayo was the Capital
city of Rhodesia, this was later handed over to Salisbury which is currently Harare. Bulawayo remained as a
gem of production due to its location. Bulawayo is strategically located in the manner that its geographical
location gives it an added advantage as it‘s the city that is nearest to South Africa and Botswana. The railway
and road network make Bulawayo what it is. With the booming Industries of Bulawayo there was the need for
a Bus Rank and there is no wellknown place in Matabeleland such as eRenkini. The nostalgia and memories
that are attached to this bustling Bus rank is visible on the Literary History of Bulawayo.
Del Atlantico al indico (2010), The first train arrived in Bulawayo in 1897, early colonial settlers using the
region's immense natural wealth turned Bulawayo into a boom town, and Bulawayo grew to become an
important industrial hub of Southern Rhodesia (now called Zimbabwe). The arrival of railways in 1897 made
it the country's major centre for mining, ranching and industrial activity. Many heavy industrials were located
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in the town. Each and every city in the world has its own history. The achievements that a city tries to archive
for example creation of industrial cities to the downfall of these cities leading to the underutilisation of
industrial cities.
The underutilisation of industrial companies is seen by various giants operating below capacity. Munyaka
(2014) describes the characteristics of underutilised industries, The industrial area, once alive with the roar of
engines and the wail of railway locomotives transporting finished goods, reveals the story of decay. The
streets are generally deserted and the few remaining workers can afford to take prolonged afternoon siestas on
the railway line that snakes through the industrial belt, sleeping safe in the knowledge that trains in the area
are now a thing of the past. The long grass on the tracks is ample evidence that the trains have long ceased to
operate. Therefore it has resulted in underutilisation of industrial properties through the country and creating
more informal sectors such as churches and mechanics who do not contribute to GDP.
The industrial areas remain mostly abandoned. Warehouses lie empty with broken windows. Their grand
entrances, once crowded with workers, are now filled with overgrown elephant grass. Faded signs, rusting
roof panels and chained gates tell a story of something gone horribly wrong. The 2014 report, the
Confederation of Zimbabwe Industries (CZI) noted that the sector was undergoing serious de-industrialisation
which has reached catastrophic levels‘ (CZI, 2014, p. 6), with 4,610 companies having closed since 2011
(Zimbabwe Independent, 2015). This meant that goods that used to be ferried around the country and to
neighbouring markets by railway were now carried primarily by road, thus hastening the deterioration of the
country‘s road network and the industries. The government‘s inability to resurface its roads resulted in
potholes, damage to vehicles, and numerous traffic accidents, among other problems.
Another alarming problem is the machinery which was intended for production purposes is not utilised leading
to the deterioration and hence the collapse of industry. Therefore, the industrial building losing purpose for
use. There is need to revive industry in Bulawayo so as to improve the economy in the process reducing
inflation, unemployment, deindustrialisation through enabling free market oriented legislation and flexible
fiscal terms.
1.6 AIM
The aim of the study seeks to investigate the implications of underutilisation of industrial
1.7 Objectives
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• To outline the underutilised industrial properties in selected industrial areas.
• Investigate the nature of local economic development in Bulawayo to resuscitate the industries.
• Come up with policy recommendations to prevent further underutilisation of industrial properties mine the
root causes of underutilisation of the industrial properties in Belmont.
1.7.1 Justification
The research provides deep insights on the extent of, root causes and possible ways of mitigating the
underutilisation of industrial properties in Belmont. Zimbabwe used to be on top in terms of industrialisation
performance in the sub-Saharan Africa. The underutilisation of industrial properties has many negative
consequences ranging from economic, social and political, hence there is need to critically analyse the process
and come up with sound policies to address the problem. Additionally, this study aims to contribute to and
fill the gap on the current vast information and knowledge on underutilisation of industrial properties in
Belmont and also will benefit various players such as the Estate agents, property developers, policy makers,
research institutes and the community at large.
The study will help to identify the industrial sites in designated areas which are underutilised and removal of
the informal sector which is occupying the industrial sites so that investors may be incorporated hence
reviving the industry in the process and the property sector.
In this study physical harm was not considered, however, the research took into consideration that the
psychological consequences needed sensitivity. The research was sensitive to the participants‟ emotions when
probing questions that could psychologically harm the participants. The researcher notified the participants
that if they felt that some parts of the interview were too much for them they were free to withdraw from the
study or choose not to answer the questions.
1.8 Limitations
The author found it difficult to interview some of the target population due to political unrest for example,
the lockdown were businesses was to operate on certain procedure for instance the number of workers and
visitors was limited due to the covid measures put in place for the safety of the work environment . Some
industrialists refused to be interviewed as they feared of supplying information which may lead to repossession
of their property and businesses by the present Government.
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CHAPTER TWO: Literature Review
2.0 INTRODUCTION
The previous chapter focused on the research's introduction, specifically the background, hypothesis, aims,
delimitations, and constraints. The next section of this chapter examines the related literature. The research
will consult many sources in this chapter to highlight the reasons of underutilized industrial properties as well
as the effects of underutilized industrial properties in the property industry.
An industrial property is defined by Ambrose (1990), (as referenced in Sirmans et al. 2003), as the land,
structural improvements, and machinery related with a specific property that are being used for the conversion
of raw materials into finished manufactured goods. In general, industrial property includes all types of small
processing facilities and storage facilities. An industrial property is made for a specific purpose, which is to
create products from raw materials to satisfy a variety of user needs. In the commercial sector, it is seen as a
resource.
These are locations for producing items and storing processed goods for later distribution, agreed Kumar and
Kumar (ND). Large, open spaces that are free of columns are necessary for these buildings. The spacious floor
area offers enough flexibility and space for a future adjustment in the production layout without requiring
significant construction modifications. To facilitate industrial activity, these industrial buildings have a unique
structural layout.
Figure 2.1 further illustrates different zones found in industrial zone in Bulawayo
Figure 2. 1: Showing the zones that are to be in an industrial area: source: Local plan number 8 of
Bulawayo.
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ZONE 6: Special industry
Zone 1: Service
industry
A special industrial area is defined by the local plan number 8 as a structure or area that is not a service, light,
or general industry, or a repair garage, or a petrol filling station, and in which, in the opinion of the local
authority, the works and processes are detrimental and potentially harmful to the health, safety, and amenities
of the surrounding area. Special, noxious, and water and air pollution-causing businesses are covered in zone
(6). Positioning these enterprises where they won't be impacted by the airport smoke limitation zone and where
there won't be as many issues with nearby land uses
Figure 2. 2: Showing the main activities that are should be carried in a special Industry. Source: local
plan number 8 of Bulawayo
Special Industry
The group shall include any building designed for or used for one or more of This group shall not
include the following works or peocesses
Table 2. 1: Activities carried out in a general industry. Source: local plan number 8 of Bulawayo
the production and storage of gas, the freezing, chilling or storage in cold storage of any article,
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slaugthering of livestock and generation of electricity,
the adaptaton for sale or use of an article, the sorting, assembling or packaging, printing of letter
press.
Fig 2.3: Showing a group of activities that are not included in a general industry.
Servicing
Cleaning
and
Repairing Polishing Of
Motor
Vehicles
Fig 2.4: Shows a list of activities carried out in a service industry. Source: local plan
number 8.
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This group shall include This group shall not
Small Machine repairs for example stoves, the sharpening of variuos articles for examples refridgerators,
washing machines, sewing machines saws, shears, lawnmowers, hedge cutters.
key cutting and modifying excluding the sharpening repairing, servicing, cleaning and general
of articles maintanance of motor vehicles
cycle repairs
A structure or area that is not a service station, a special industry, a repair garage, or a gas station is considered
to be a "light industry," meaning that its industrial operations are limited to the light manufacturing, changing,
repairing, and finishing of various items. The group will consist of those listed below.
Fig 2.5: Shows a list of activities not included in the light industry group. Source: local plan number 8.
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Scotch Cart Makers Small Scale Metal Workers Small Scale Carpentry And
Cabinnet Makers
A warehouse can be described as a location utilized for the storage or accumulation of products,
according to Chand (2019). Warehouses utilized for storing the items can be used to successfully
perform the storage function. Given the constant flow of commodities, warehousing is essential.
The commodities may come in the shape of finished products that will be supplied to various
clients or they may come in the form of raw materials that will be used by the manufacturing
business. O'Brynes (2017) concurred and added that a well-designed area for the effective
storage and management of goods and materials qualifies as a warehouse. Large quantities of
space are needed for warehouses in order to accommodate more products, which may come in
different shapes and sizes.
According to O'Brynes (2017), the warehouse serves as an important hub at the center of the
supply chain because of the flow of materials and commodities in and out. More often than not,
individuals don't realize how active and profitable a warehouse operation can be. Certain
products move slowly. While some may move very swiftly, everything must move. The various
products must be organized, handled, and planned in accordance with how they are anticipated
to flow through the system. Even though it requires planning and particular treatment of the
commodities, warehousing is seen as a significant investment with the potential for significant
earnings.
According to Taylor (2014, p. 2), an underutilized building can be defined in a variety of ways by
professionals. A property that is not being used to its full economic potential, as determined by real estate
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experts, appraisers, and developers, is said to be underutilized. Planning professionals and elected officials
typically have a wider view, taking into account how vacant buildings affect the community's stability,
economic vitality, and property values. Along with the financial benefit of an inhabited building, they work
to identify a higher and better use that satisfies community needs. The final decision rests with the community
and its goals, although a combination of numerous indicators may be used to quantify underutilization in a
community. By analyzing the site characteristics, demographics, zoning, economic environment, community,
cultural practices, laws and regulations for that area, it is possible to identify underutilized industrial buildings
and enable the private and public sectors to channel resources where they are most needed.
The Toronto Fire Services define abandoned properties as a "property that has been boarded-up and may have
impaired structural integrity," according to Fletcher (2014, p. 5). The "use" of the property is included in this
description and is generally divided into abandoned residential, abandoned commercial, and abandoned
industrial. These classifications were given based on the former "use" and may not accurately reflect the site's
current zoning.
Table 2.2: Definition of terms. Source: Fletcher. 2014, p. 5, 6. Analysis of Vacant and Abandoned
Properties in the City of Toronto.
Other Definition of terms
Term Definitions
2.1.3. Vacant The definition of vacant properties by the Toronto Fire Services is a
properties "property that is not currently occupied but well-maintained that is no
broken windows or signs of structural degradation) and locked‖. This
definition includes the 'use' of the property, broadly categorized into:
vacant residential, vacant commercial and vacant industrial. These
categories have been assigned based on the previous 'use' and do not
necessarily represent the existing zoning on the site.
2.1.4. Vacant lots Parcels of land that do not have a structure on it and may be
underutilized, or contaminated (Home, 1983).
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2.1.5. Mothballed Sites that are vacant and secured (windows boarded/fenced) which
Sites protects the site from falling into disrepair, often while developers
acquire additional land and/or secure planning approvals (Schwarz,
2011).
2.1.6. Brownfields Abandoned or underused land, while others specify that brownfields
are commercial/industrial lands. A final distinction is the requirement
that lands are either known to be contaminated or suspected to be
contaminated (Environmental Protection Agency, 2014)
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2.4 Determinants of Industrial Milieu
Helmsing (2000, p.21), Different functions can be used by businesses to deal with uncertainty. According to
Camagni (1991), who highlighted many gaps and ways in which enterprises establish functions, routines, and
procedures, the local economic environment and networks can improve the capacity of firms to achieve this. They
lack expertise since it is difficult and expensive to gather accurate information. Unknown features of inputs,
components, production factors, and equipment lead to a gap in assessment (the lemon problem). Companies
conduct data collection procedures and adopt transcoding. The local setting can support the aforementioned roles
for the company in a variety of ways, becoming a milieu. In terms of production image, reputation, and quality
certification, the milieu can serve as a signaling function regarding the direction of markets for local businesses.
Milieu decreases uncertainty, therefore different factors that relate to theories that define labor mobility proximity,
supply chain linkages, and synergistic effects come from shared cultural, psychological, and political
backgrounds.
Studies on location selection by individual businesses can be traced back to Weber's neoclassical location theory
from 1909, according to Gatfield and Yang (2006, p. 48). This theory typically only takes into account inputs
from a variety of material sources and outputs that are aimed toward a particular market. According to this
viewpoint, each company looks for a site with the lowest possible production and transportation expenses. Later,
this paradigm was expanded to take into account things like the substitution of labor costs, transportation costs,
and alleged external economies of scale for industrial agglomerations. It is essentially a cost-minimization
strategy for production functions (Hamilton, 1974). However, some industrial geography researchers have
criticized neoclassical location theory on the grounds that it ignores the influence of history, uses a constrained
understanding of space, and contains fundamental theoretical errors (Peet, 1989; Smith, 1989).
By describing organizational characteristics and their effects on location decision-making using simple, frequently
gross factors, these studies have begun to "open the dark box" of the firm (McDemott & Taylor, 1982). The
process of de-industrialization that occurred in western economies between the 1960s and 1980s provided
additional incentive for behavioral scientists to develop this new theoretical framework. The analysis of the
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location choice of conventional manufacturing companies is the foundation of the two main theoretical schools,
neoclassical and behavioral. The applicability of these two approaches theories was called into doubt for recently
growing industries like high technology and producer service industries. As a result, a novel idea, commonly
known as the New Industry Space Theory, emerged in the 1980s (Markusen, Hall, & Glasmeier, 1986; Scott,
1988, 1993).
The social division of labor, the growth of small to medium-sized industrial facilities, and the re-agglomeration
of the production and service industries serve as the theoretical foundations for this idea. As a result, numerous
new industrial spaces have developed (Scott, 1988). These areas include high-tech industry clusters that heavily
rely on information technology, hire a lot of people with high levels of competence, and run big, highly active
networks between firms (Bathelt & Hecht, 1990).
d) Location Theory
According to Dawkins (2003, p.136), location theory has mostly concentrated on creating formal mathematical
models of where businesses should be located in order to minimize transportation costs for both raw materials
and finished goods. Simply said, businesses will gravitate toward locations close to markets when the financial
weight, which is calculated by multiplying the physical weight of the transported item by the shipping expenses
per mile, exceeds the financial weight of the inputs needed to make the product. In contrast, when the financial
weight of raw materials is significant compared to the weight of the final product, businesses have a tendency to
locate close to key input sources. In order to reduce their overall production costs, businesses may also take into
account the relative production cost savings from specific regions.
e) External Economies
Dawkins (2003, p.137), The cost benefits of being physically close to inputs and markets are modelled solely in
terms of internal transportation cost economies, which is a problem with standard Weberian location theory. Since
Marshall ([1890] 1961), economists have emphasized the possibility that industries group together for reasons
unrelated to internal cost considerations. Instead, businesses may group together to benefit from external
economies brought about by being close to a lot of other businesses. According to Hoover (1937), these external
economies may consist of localization economies, which come about as a result of businesses in the same industry
locating close together, and urbanization economies, which come about as a result of businesses in various
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industries coming together. These external advantages are frequently referred to as external scale economies or
agglomeration economies since they tend to grow with the quantity and output of cooperating enterprises.
Traditional competitive market models have a tendency to neglect these impacts, despite the fact that they may
encourage knowledge spillovers, labor pooling, and economies in the production of intermediate inputs, all of
which have been mentioned as contributing variables and boosting returns to scale.
Dawkins (2003, p.137), A company may be able to charge clients who are close to a certain distribution location
more money, which is another advantage of spatial proximity. This observation, which Harold Hotelling
originally investigated in 1929, has given rise to a sizable body of literature on how location influences how
enterprises set their prices. The crux of Hotelling's argument is that geographic proximity offers businesses market
power since consumers in the area will pay more for things that don't require expensive transportation.
Monopolistic competition in space creates a trend toward concentration with firms splitting the market along the
line segment in the simplest instance with two firms competing along a straight line. However, since clients at
either end of the line must pay more for transit, this ideal site is not socially effective. Hotelling's initial model is
expanded by works by Devletoglou (1965), Eaton and Lipsey (1978), and numerous others to take into account
the threat of entry by rivals, demand elasticity, and rivalry along a plane.
The work of Christaller (1933) and Losch can be found in Dawkins' (2003, p.137) comprehensive theory of the
spatial position of enterprises (1954). Christaller created the central place theory, as it became known, to explain
the dispersion of cities of various sizes in southern Germany. By incorporating the notion of a demand cone into
the hexagonal market area framework created by Christaller, Losch builds on the initial concepts of Christaller
and places the min in an economic context. According to Losch's main theory, scale economies and transportation
costs to markets work in concert to determine the relative size of a firm's market area, which is the region in which
it sells its goods .All production will be done at a single plant if scale economies outweigh transportation expenses.
Businesses will be dispersed throughout the region if transportation costs are high in comparison to scale
economies. Free entrance between businesses results in zero profitability for each given market and an even
distribution of businesses with hexagonal market areas. However, the size of each individual hexagon will vary
for various markets because to variations in transportation costs, scale economies, and product demand. Wherever
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markets for various items overlap, central centers develop. As was said in the part before, this monopolistic
competition in space results in a hierarchically organized system of cities with varying sizes and levels.
Le Roux (2015, p. 7) offered the intriguing viewpoint that the central location must play a specific role in the
operation of the city's hierarchy. The goods and services a central location provides determine each of its
functions. The companies that carry out these services are situated adjacent to one another for mutual advantage.
The cost of goods will go down because to this location. Small firms are situated close to larger businesses to take
advantage of their operations. The approach encourages service centralization to cut production costs while
utilizing resources like industrial land and buildings.
For the industrial buildings for them to be fully utilised it will all depend on the location of the market place were
lower order that is K, A and M are the supplier but with different ranges although they cannot supply to high
order that is the G place and B place as shown in Figure .
The availability of trained labor, transportation, capital, land rent, existing infrastructure, agglomeration benefits,
target markets, power, water, and inputs like raw materials for production are therefore necessary for industries
and enterprises to develop. The Roux (2015, p.), Each circle (points Q, R, and P) represents an existing firm, and
the regions where these circles overlap are the greatest places to start a new company or sector. Benefits of
business agglomeration like inexpensive transportation, customers, and goods are provided by Points Q, R, and
P. Notably, it will be less expensive to carry goods using the same transport provider when multiple businesses
in the same area order or transport items simultaneously. Point A offers the ideal location for a new firm looking
to establish itself. This provides the opportunity for the company to utilize a further agglomeration benefit from
the other company, as may be shown below.
Fig 2.6 Central Place Theory. Source: Le Roux . 2015. Cited in Beavon (1977, p.29). An exploration of the
role of waterfront development in urban regeneration:
Fig 2.7 Agglomeration Benefits. Source: Le Roux. 2015, p. 14. As cited in Weber, 1929, p.133.
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2.5 Urban Morphology
Table 2.3 Below shows the Concentric Model proposed by Ernest Burgess 1925: Source: AP Human
Geography Crash Course.
USE CHARACTERISTICS
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1. • Social and civic life of city is found in this zone.
• These are the uses which seek central location for their success and
utility.
• It also contains, in short, the economic, political and cultural life of the
city.
• City parks, marriage halls, higher order education facilities, hospitals are
also located in the centre.
• Uses along the boundary of this zone are the wholesale markets, ware-
houses, industry which don't require much area.
2. Dzoma (2015) notes the key characterised of this zone based on ZIMSEC
geography notes,
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It is famous for its crimes and social problems for example prostitution and
vandalism.
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4. It contains large residential area of city. It is also called high class residential
zone in the Concentric Zone Model Theory
Well decorated, undivided and costly constructed high class residences are
found in this zone.
In most cases, this zone may be the most accessible area from all parts of
the city
5. • Burgess dealt fully with this fifth zone. In this zone, all the
suburban communities found along the arteries of transportation.
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Fig 2.8 The Concentric Model. Source: Jamal, H. 2017. Concentric Zone Model Theory and Its
Limitations.
Table 2.4 Below are the Nodes of the Multi-Nuclei Model: Multiple-Nuclei Model: Source:
AP Human Geography Crash Course.
ZONE USE CHARACTERISTICS
1. The Central Business The CBD is still the main hub, but the
metropolitan area has saw the development
District
of other local commercial areas. Some of
these more recent neighborhoods compete
with the CBD for the services of established
businesses like banks, real estate firms, and
insurance organizations. The pull of the
CDB is lessened when these distinct nuclei
become specialized and differentiated.
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2. Wholesale/ Light These companies are closer to residential
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4. Middle-Class This residential region is a little more
desirable due to its distance from pollution
and industry. Good transportation lines are
available to those who work in the CBD,
making the journey easy. The greatest
residential area is in the middle class.
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6. Heavy Manufacturing The factories that create heavy materials like
chemicals, steel, and industrial machinery
are located in this node. This node also
contains the mining and oil refining
industries.
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9. Industrial Suburb On the outskirts of the city, this community
was built and is zoned for industrial sources.
Industrial districts in these new cities rely on
truck freight to acquire supplies and ship
products instead of being constrained by the
requirement to access rail or river corridors,
allowing them to exist anywhere zoning
regulations permitted. Industrial zones are
situated apart from residential areas because
they produce pollutants.
Lynch (2005, p.105-106), In industrial cities, degradation results from the inadequacy of outdated spatial
arrangements for contemporary manufacturing methods. The industrial city's urban model did not account for
changes to its initial circumstances, thus when those conditions changed, the city could only fall apart. The spatial
organization of industrial communities was organized to maximize industrial gain in terms of profits and costs:
production was maximized. However, when they were built, the irreversible process of decay connected with
growth was overlooked; this included the processes related to urban and social decline as well as the consumption
of land and environmental degradation. Only economic expansion and production trends were used to bind the
urban concept to reality. The ideal urban model for mass manufacturing supplanted the city's historical values,
memory layers, and millennia of civilization. Cities built for concentrated industrial labor started to lose
population when the economic paradigm shifted.
The shift from an agricultural to an industrial, mass-production, mass-consumption economy was once widely
represented by Henry Ford. Fordism is the term used to describe the mass production and consumption system
prevalent in highly developed nations during the 1940s and 1960s. Fordism promoted universal material
advancement and sustained economic expansion through the use of mass production and consumption. It was a
time of sluggish growth and rising income disparity from the 1970s through the 1990s.
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The first of these changes was from handcrafted to mass-produced goods. Because of economies of scale and
scope, this contributed to the development of the market as we know it today and gave rise to massive corporations
with intricate divisions of labor and functional specialization. By distributing fixed expenditures, such as
investments in machinery and equipment and the setup of production lines over higher output volumes, economies
of scale were created, which decreased unit costs. By using the division of labor strategically to combine
overheads like reporting, accounting, people, purchasing, or quality assurance in a variety of ways, economies of
scope were created, making it less expensive to make multiple goods than a single specialized one. It also
engendered a variety of public policies, institutions, and governance mechanisms intended to mitigate the failures
of the market, and to reform modern industrial arrangements and practices (Polanyi, 1944).
Process engineering was where Ford made the bulk of its contributions to mass production and consumption. His
method was characterized by standardization—standardized parts, standardized manufacturing techniques, and a
straightforward, easily-manufacturable (and repairable) standard product. For standardization to be possible, parts
had to interchange virtually perfectly. Ford took advantage of improvements in measuring systems and machine
tools to accomplish interchangeability. These developments allowed for the creation of the continuous or moving
assembly line, where each worker completed a single, monotonous activity. Ford was also among the first to
recognize the electric motor's potential to change how work is done. The assembly line allowed for the placement
of machines that were previously arranged around a central power source, significantly increasing throughput
(David, 1990). At Ford's Model-T Plant in Highland Park, Michigan, the moving assembly line was first used in
1914. This allowed for spectacular price reductions from $780 in 1910 to $360 in 1914 (Hounshell, 1984;
Abernathy, 1978). Fordize is a term used to describe the process of standardizing a product and mass producing
it at a cost that the average person can afford.
Industrial parks (IP) are described by Azizov (2014) as containing small and medium-sized manufacturing
facilities with distinct and compliant production processes in exclusive closed zones. Social, technological, and
residential services are all offered by IPs. According to the United Nations definition, industrial parks are
comprised of small and medium-sized businesses that have integrated their operations and production while
utilizing shared infrastructure services provided in conventional fabric buildings.
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The characteristics of Is the institutions in IPs are either complementary in the production process or producing
in the same line, the institutions here are purposed for production and they have limited size: small or middle
sized, accumulated in a particular place and contains clustered institutions, having supporting local,
administrative, and private institutions in the clusters by networking and the other transportation, water, and
energy sources. Azizov (2014, p. 11, 209) states that these institutions are also grouped together. Utilizing
infrastructure services responsibly helps to prevent environmental damage and ensures proper regional planning.
Additionally, addressing infrastructure problems is directly tied to IP administration, which raises the profitability
and usefulness of clusters.
Azizov (2011, p.14), It serves the primary function of effective IP allocation while serving as a development tool.
Whereas IPs are the results of a comprehensive, coordinated, and planned approach. Even for business owners,
IPs provide well-organized and productive spaces that are beneficial to newcomers. In this regard, we can define
the goals of IPs as including the following: fostering an environment that is appropriate for entrepreneurs, in
addition to maintaining a strong and effective infrastructure, institutions benefit from the positive externalities of
IPs, which increases their profitability and competitiveness, promoting faster industrialization and its quick spread
throughout the nation, and preventing unchecked urbanization, Holding the sustainable and equal distribution of
economic development across the regions of the respective country, promoting standardization, and also IPs
provide incentives for the entrepreneurs by lowering the barriers to where and how to produce, or, in other words,
allowing for the quick and easy entry of entrepreneurs into the market with the least amount of bias.
Azizov (2013, p. 1) argues that IPs were created in the last century to advance industrialization and raise
production, usefulness, and product quality. IPs are acknowledged as a cost-reduction strategy in the
industrialisation process. As a tool of public policy, IPs have been set up in the majority of developed nations to
facilitate the transition of people from densely populated cities to precise rural areas. The need for IPs is more
critical and advantageous in developing nations than in established ones. Small and medium sized firms make up
the clusters in IPs, making their significance and productivity greater than in industrialized countries. Because
huge institutions in rich countries are able to perform these activities within their own walls and because small-
to medium-sized firms are not as productive as large ones, the effectiveness of IPs is extremely advantageous for
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emerging nations. In this instance, we may conclude that IPs strongly encourage small and middle-sized
enterprises to spend in order to increase their productivity and earnings [13. p. 15].
In the United Kingdom from Europe, the United States from America, and Malaysia and Singapore from Asia,
where IPs play a significant part in their economic growth and development, there are numerous implications of
IPs that can be easily recognized [Azizov (2014). pp. 48–57] IPs in United Kingdom: In the UK, industrial estates
are the most common name for IPs. The UK government has backed investments in IPs that will lower
unemployment and boost the local economy, which is expected to pave the way for future economic expansion.
In the beginning, the purpose of IPs was to generate profit, but after World War II, it evolved into a tool for
economic lower-cost production, the use of more productive areas where raw materials and other opportunities
are mobile for the industries, that they can withdraw, and the use of these IPs as a strategic instrument for future
developmentIPs in Malaysia: Since the 1960s, IPs have accounted for 78 percent of all industries, which is a
considerable rate for IPs investments, which were the major strategy in the advancement and growth of
industrialisation. Additionally, the locations where the IPs would build have been identified and deliberately
changed. The same aforementioned objectives were among the reasons why IPs were established in Malaysia.
The primary goal of IPs in Malaysia is to promote and encourage exporting in order to create growth that is
export-oriented. In Malaysia, IPs are categorized as follows: - Supported by local and port administrations, 222
economic and free trade zones.
According to Dube and Chipumho (2015, p.55, 69), both the government and the actors in the manufacturing
sector generally failed to take any actions that would have effectively returned the industry to its pre-crisis levels.
This resulted from a failure to enact policies that directly addressed the issues that nearly caused the sector to
collapse in order to ensure that the manufacturing sector structurally recovered. Even if improvements were made
to the policy, other policies, like the indigenization policy, may not be favorable to investors, as President
Emmerson Mnangagwa noted in an interview that (Russell, 2018) the indigenization policy was divided into
three. The first section is concerned with the extractive or depletable resource sector, which is the mining industry.
The second is what do you call it after that? non-diminishing resources The bill required 51% government
ownership and 49% investor ownership for the first one, the depletable, extractive sector. When you arrive at the
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airport in Harare, 50% of your money belongs to us and 49% belongs to you. If you work in manufacturing,
though, it is negotiable. Local engagement is present, but 51/49 is not mandated. Then, if you enter the section
that is designated as being for locals only, such as the girl's salons, you will find that there are small groceries
there. I have revised that and say the entire economy is open, except for two minerals: diamonds and platinum.
The rest you can think about it could be lithium, coal, gas, chrome, nickel, whatever, manufacturing, industrial,
infrastructure it‘s open.
The majority of Zimbabwean exporting companies provided the foreign exchange needed to meet the country's
demands; nevertheless, manufacturing sector companies that relied on the export market encountered difficulties
as a result of RBZ limitations on foreign exchange. Lack of foreign currency is the main factor in the
underutilization of industrial facilities since owners cannot afford to purchase and maintain new equipment.
Companies were subject to restrictions like the surrender requirements.
Using Detroit market data from the state Society of Industrial and Office Realtors (SIOR), Sirmans et al. (2003,
p. 294) (cited Hartman (1991)) examine the growth in average sales prices per square foot of industrial buildings
and land, comparing city to suburban values. Building sizes and urban morphology may contribute to the root
cause of underutilization of industrial properties. According to this analysis, prices continually go down as
building size goes up. In addition, Hartman discovers that regardless of the state of the market, demand is highest
for structures with 25,000 square feet or less. examining the propensity of different businesses within a sector to
group together and frequently constitute the core of a city. The size of the structures, the amount of land, and the
location all affect the demand for industrial properties. Sirmans et al. investigate the historical significance of city
industry locations (quoted in Rauch 1993). This study highlights the historical motivation that corporations have
to continue to be influenced by agglomeration economies. According to Rauch, businesses are hesitant to switch
from an old, expensive location to a new, less expensive site, but real estate developers may be able to overcome
this resistance over time via pricing tactics. The industrial building will be abandoned for less expensive places,
adding to the stock of empty structures. According to Wheaton (1996), as inventory management gets better, there
will be less of a need for industrial assets, which will lead to a decline in the price of warehouse real estate.
(Sandhya) highlighted the following reasons for the underutilization of industrial properties in an online article,
as indicated in the table.
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CAUSE EXPLANATION
1 Planned Excess While making investment decisions the entrepreneurs take into
Capacity account not only the existing demand for goods but also the
level of demand likely to emerge in the foreseeable future. As
a result of planned excess capacity, there is some degree of
underutilisation of capacity.
2 Technological There are some plants and equipment which can function at a
4 Shortage of Foreign The shortage of foreign exchange for the import companies,
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7 Government Policy Policy changes by the government in respect of industrial
licensing, expansion of capacity, imports, project aid, foreign
exchange, protection, also leave industrial capacity
underutilized
Crawford and Slade (2001, p. 162) presented an intriguing viewpoint, stating that excess asset capacity indicates
that realized income will be lower than projected income. The present value of the income deficit would be the
technically correct way to calculate the asset's obsolescence if the income shortfall could be established with
accuracy. Properties that are underutilized result in a reduction in the asset's anticipated income, which has a
negative impact on property prices. This is a result of the rental home luring renters of lower caliber. Therefore,
a decrease in income causes homes to continue to deteriorate, which makes investors less interested in buying
subpar, non-income-producing properties. Therefore, there is less real estate investment in the real estate sector.
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Given that value is formed from scarcity, Fletcher (2014, p. 11) asserts that an oversupply of homes may cause
real estate markets to become unstable (as cited in Schwarz, 2011). Communities run the danger of seeing their
property values drop as the number of vacant and abandoned homes rises. This has an effect on the city's capacity
to collect property taxes, which are normally based on property value. In addition to attracting bugs, vandalism,
trespassing, and other signs of urban deterioration, abandoned properties can decrease the value of neighboring
properties.
2.9.3 Decentralization
Jones' study on redesigning the monopoly board (2009, p. 2366) (cited in Fletcher King, 1989, p. 3), Office parks
were the first decentralized commercial space to gain popularity in the middle of the 1980s. A business park is a
sizable plot of land that has been developed to offer a high-quality environment in attractive surroundings, with
low building density suitable for a variety of activities, including manufacturing, assembly, customer support,
research, and other office and commercially based functions. According to a study on businesses moving to
business parks (Chanakira (2006) quoted Knight Frank (2004)), demand for office and retail stock is at its highest
because investors are trying to avoid getting too exposed to industrial stock in light of the previous manufacturing
sector's poor performance.
Instead of turning the existing industrial sites into world-class businesses, the government has pushed the building
of industrial parks. The government intends to speed up the creation of more industrial parks and industry
development corridors alongside important infrastructure points this year, while present efforts will be focused
on developing its Sunway project in Ruwa, according to a Herald Business reporter. The government has already
set aside 1 000 hectares of property worth $45 million for a variety of projects including factories, commercial
parks, and housing.
The government is currently working on the Sunway City Integrated Industrial Park, which was established to
develop environmentally friendly world-class integrated industrial, commercial, institutional, recreational, and
residential parks in order to provide relevant infrastructural development to facilitate Zimbabwe's industrialization
and economic growth as well as regional integration and trade, according to The Herald Business Reporter (2015)
(citing Ms. Makombe (2015)). The industrial park was created to rival the best in the world at providing top-notch
industrial manufacturing shells supported by cutting-edge technology, effective communication, efficient road
and rail connections, and strategic land use planning.
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2.9.4 Land use/ Zoning
The conversion of industrial buildings into hotels, serviced apartments, and residential flats should be prevented,
the Hong Kong Legislative Council panel (2011, p. 6) stated, as this would have an impact on the residential real
estate market, the commercial market, and the hotel industry. The underutilization of industrial properties has a
detrimental impact on the real estate market since land use zoning laws are frequently modified or ignored. Due
to the severe shortage of land and properties, this will have an impact on several industries, including
manufacturing.
The rents for converted buildings may increase significantly because the bulk conversion of industrial buildings
was expensive, according to the Hong Kong Legislation Council (2011, p. 5). In the end, only businesses with
higher financial potentials, such those in retail, catering, and banking, could occupy these structures. Rents might
go up if buildings are converted to different purposes.
2.9.6 Unemployment
In Elizabeth, New Jersey, for instance, the State's Economic Development Authority renovated a 106-acre parcel
along Newark Bay that had been the location of the largest sewing machine factory in the world, according to
Bartsch and Collarton (1996, p. 18, 43). By closing the business, The Singer Manufacturing Company jeopardized
approximately $500,000 in annual tax revenue and undermined plans for waterfront development in the area. As
the plants shut down, the nearby neighborhoods also started to deteriorate. The Winchester-Olin complex was
only one of numerous historic industrial locations in older cities that were in a state of transition. People frequently
leave cities in pursuit of "greener pastures," settling in vacant lots and shuttered businesses.
Property owners who are unable to sell contaminated properties may choose to simply abandon them, according
to Bartsch and Collarton (1996, p. 19), eroding the local tax base. Vacant buildings decay, luring unchecked
material or equipment removal, vandalism or arson, and the nocturnal disposal of contaminated items. Unchecked
pollution may get worse and spread, lowering the value of a property further, raising the expense of cleanup,
endangering the health of the neighborhood, and endangering the economic sustainability of other properties.
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Contaminated sites frequently turn into unwelcome financial, legal, and administrative burdens for local
governments and their tax payers.
& Collarton, Bartsch (1996, p. 39) Simply put, lenders and developers may choose not to work with businesses
or assets that pose an environmental risk. According to development experts, a growing sector of the economy
may be vulnerable to this kind of lender caution, which in some places manifests itself as environmental redlining
or a refusal to make a loan out of concern that the property poses risks beyond those associated with traditional
economic risk. Some people are calling this new phrase brown lining. In fact, a lot of bankers have recognized
some types of borrowers as being unfavorable, such as tool and die shops, bottling and canning operations, high-
tech metal fabricators, semiconductor facilities, and utilities. Lenders might therefore restrict their lending to big
businesses with substantial assets. Small enterprises, especially those engaged in start-up or expansion, usually
use the land and buildings being financed as loan collateral, because they have no other assets to often.
The less the collateral value, the more the industrial building depreciates. Lack of access to capital by businesses
results in failure to maintain competitiveness, update facilities and equipment to produce state-of-the-art goods,
gadgets, and machines, penetrate and expand into the market, leading to high levels of unemployment and low
investment in the real estate sector as development and construction tend to slow down or stop.
In Harare, local economic development practices are biased in favor of reserving property zoned for commercial
and industrial uses and putting in place development control guidelines. The informal sector and small to medium-
sized businesses have also been noted as the main local economic development activities that citizens participate
in.
Mandisvika (2015, p. 200) According to Keeble (1969), LED first appeared as a way of responding to industrial
cities like Manchester in England and finding solutions to the issues those cities faced. LED did not merely
develop as land use planning or as a sectorial method, but it connects both (Blakely, & Bradshaw, 2013). When
he further stated that planning for LED in early industrial cities was concerned with eradicating the effects of the
communist economic strategy that resulted in congestion, underdevelopment, and imbalanced development,
Goodman (1972) expressed the same ideas as Keeble (1969). Cities were significantly altered throughout the
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industrialization era, making poverty, illness, and overcrowding important characteristics. Following Keeble
(1969), LED planning aimed to establish spatial connections between rural and urban centers that would promote
compact development and the establishment of a local economy. The purpose of LED was to establish regulations
for economic planning through the designation of special areas that would serve as insurance against
unemployment as well as to eliminate regional economic imbalances by fostering an environment that would
encourage business growth in the outlying areas.
The following case study help to understand the causes, effects and the remedies to underutilisation of industrial
properties in relation to the catastrophic events of deindustrialisation in developed countries for example pioneers
of industrialisation that‘s Britain, Taiwan, in developing countries the study will be focusing on Egypt, South
Africa and Zimbabwe.
a) BRITAIN
The case study of Britain, Taylor (2011) states, The UK was the first country to industrialize, eventually becoming
the World's preeminent power on the back of its factories, mines, and workers. Now, those factories and mines
are closing, and those workers aren't working. In the past 30 years the deindustralization of the country has
accelerated rapidly, leaving many people behind.
Michie and Kitson (2014, p. 2) Being the "first industrial nation" came both benefits and drawbacks for Britain
(Mathias, 1969). Although slowly and some time after the creation of the organizational and technological
advances that brought about economic change, the industrial revolution contributed to an acceleration in economic
growth. However, there were drawbacks to being the first to industrialize, as other developing countries could
copy Britain's successes without making the same mistakes. Another issue was that British manufacturing was
ensnared in an industrial structure that was resistant to change as the domestic and global economies advanced.
When examining the success of UK manufacturing, it is common to hear that it has been constrained by
unfavorable supply conditions, particularly an uncompetitive environment that has resulted in slow productivity
growth and insufficient structural change (Crafts, 1996).
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Michie and Kitson (2014, p. 12) The Deteriorating Era, 1973–2007 Early in the 1970s, there was a significant
shock to the global economy. There was the advent of "stagflation" in the UK and many other advanced nations,
which is defined as high rates of inflation and high rates of unemployment. Additionally, there was a significant
shift away from governmental interference and toward policies that favor the free market. This was a time of
output stagnation and sustained employment loss for the industrial sector. From 1973, manufacturing employment
declined in all the main nations, although the UK's decrease was significantly greater than those of the other
nations. Michie and Kitson (2014, p. 16)..
Fig 2.9 Annual growth rates for Germany are for 1991-2007 and for Japan are 1989-
2006 Sources: Kitson & Michie (1996), as cited in O‘Mahony (1993) and the EU KLEMS database and own
calculations
Michie and Kitson (2014, p. 20-21), The "too few producers" argument made by Bacon and Eltis was one of the
most well-known free market explanations for deindustrialization (1976). According to Bacon and Eltis, the rapid
expansion of the public sector, which displaced resources (such as labor and capital) that the manufacturing sector
could have employed, was the cause of de-industrialization. They made a clear distinction between private sector
economic (market) activity and state sector (non-market) activity. Their work was published in the middle of the
1970s, when the UK economy was experiencing stagflation (a combination of a stagnant economy and high
inflation), and unemployment was rising, which suggests that the issue for the economy was not a lack of
resources but a lack of demand. Despite this, their argument was a supply side explanation that took no account
of demand side conditions. Additionally, Broadberry and Crafts (1996 and 2003) put forth a supply-side theory
of deindustrialization that emphasizes the significance of market dynamics and competition. Broadberry and
Crafts contend that strong trade unionism and improperly interventionist government supply-side policies were
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the primary contributors to deindustrialization and the relatively low productivity performance of UK
manufacturing in the year 21. Crafts (1996) adds that after the Thatcher economic reforms were put in place
starting in 1979, this subpar productivity performance was stopped and reversed.
According to Selya (2007, p. 70, 72–73), Taiwan lost almost 235 000 manufacturing employment between 1986
and 2001. The Taiwanese economy therefore complied with the traditional criteria of deindustrialization. Taiwan's
deindustrialization has 31 reasons, including the following:
1. As cited by Chen 1994, Chen 200, Chou, 2002) The high cost of labour and shortage of skilled labour
2. (as cited in Smith 1998. Landler 2001) Competition from the manufactures in the Peoples Repuplic of
China
3. (as cited in Cheng and Liao 1998, Wu 1995, Yu, 1995) Environmental Concerns and protests
4. (as cited in Li, 2002a, Sheng 1998) ‗Go South‘ Overseas Investment Policy
5. (as cited in Taipei, 2000) High price of land and difficulty in acquiring land
10. Crime
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13. (as cited in Her, 1997a) Failure of domestic manufactures to upgrade technology
18. Lack of direct transportation links with the People‘s republic of China
Seylar 2007, p.73) explains water quality issue including shortages, these have been considered as a limiting
factor in industrial expansion since 1960s.
c) ZIMBABWE
According to Musonza (2015), the manufacturing sector has experienced the greatest job losses over the past 20
years since the country adopted IMF-World Bank market reforms, which in turn sparked a protracted internal
political conflict. This is why discussions about deindustrialization should center on the manufacturing industry.
Any attempts to demote manufacturing employment as a policy option in favor of populist socialist informal
sector options are fruitless because deindustrialization essentially reflects the fall of manufacturing relative to
other industrial sectors. In structural regression, locally manufactured goods have declined sharply thereby
exacerbating the balance of trade deficit. Between 1991 and 2014, the trade balance averaged a negative US$422,
44 million. In 2014, the trade imbalance was $2,9 billion and was expected to fall to $2,8 billion in 2015, but by
January of that year, it had risen to $3 billion. The country's balance of trade imbalance has grown to the point
where it prevents it from importing the energy and inputs required to continue producing goods, which feeds the
economy's downturn. Zimbabwe's biggest issue right now is unemployment, which poses major risks to the
country's socio-political stability. According to a report by the African Development Bank, Zimbabwe is
experiencing structural regression with the acceleration of de-industrialisation and in formalisation of the
economy.
Musonza (2015), Factory closures, growing young unemployment, a liquidity crunch, a negative country-risk
premium brought on by high levels of public debt, a decline in international capital inflows (including
remittances), and infrastructural bottlenecks are some of the country's major issues (transport, water, energy).
According to official statistics, at least 4,600 businesses closed between October 2013 and 2014, costing
thousands of workers their jobs. At least 60% of all businesses are currently managed by judges. The government
has fought to save the food and beverage processing giant Cairns Holdings, recognized for a wide range of goods
and wine, but it has failed. There are many significant brands that have been erased from the manufacturing map.
The fact that the Reserve Bank of Zimbabwe (RBZ) once held 63,3 percent interest explains its strategic
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significance. Finding investors from China and Russia has proven to be impossible recently. The importation of
cheap food from South Africa had a direct impact on Cairns.
Musonza (2015), a lack of monetary activity Former President Robert Mugabe pledged to create 2,2 million
employment over his current term's five years when he ran for reelection in July 2013. Since his inauguration,
however, there have been more obvious warning signals of the economy going into a spiral than ever before. The
unemployment rate is pegged at 90% by the UN Development Programme. Data from the Retrenchment Board,
a government organization, offers a somber picture and shows that more than 1000 individuals were laid off in
the first quarter of 2015. Despite the fact that macroeconomic challenges due to the inactive monetary policy after
the establishment of the multi-currency system are evident, Zimbabwe's economic woes are mostly structural
(dollarisation). The only method to create jobs is to optimize and combine several monetary policy tools like
inflation control, money supply, interest rates, and exchange rate mechanisms because those are the tools that
manage the cost and supply of money for levels of investment and consumer expenditure. Due to an inert money
supply, Zimbabwe has no leverage after adopting the US dollar. While the prolonged use of the multi-currency
regime results in the monetary policy essentially remaining constant, the fiscal space is continuously being
constrained by the weak performance of domestic income inflows and the rise in recurrent expenditures.
Musonza (2015), Because individuals, businesses, and the government cannot obtain finance, the economy is in
this situation. The lack of significant lines of credit or reserves in the nation makes it difficult for the Reserve
Bank to operate as a lender of last resort, and businesses are having trouble refinancing their debt. We can
legitimately claim that the central bank has no discernible leverage to affect the money supply, and there is no
budgetary leeway either.
2.11 Conclusion
This chapter contains research that was gathered from numerous sources. The gathered literature provided a
comprehensive understanding of the subject under study and covered the subject's main goals. Review of the
literature was the topic of this chapter. The methods will be the main topic of the following chapter.
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CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
Research can be regarded as an activity that incorporates learning stuff you didn't know in a more or less organized
way (Walliman and Walliman, 2011, p.7). Methodology, according to Brown (2006), is the philosophical
framework within which study is undertaken or the basis upon which research is built. Methodologies,
approaches, and design are all described in the methodology. The research philosophy, study design, research
procedures, data collection techniques, research instruments, delimitate area, and primary and secondary data
sources are all covered in this chapter.
The interpretivist approach, according to Tarik (2017), is based on a naturalistic approach to data collecting, such
as interviews and observations. Interpretivism philosophy also favors secondary data study. Meanings arise
toward the end of the research process in this type of study. The interpretivist philosophy emphasizes the
examination of things in their natural setting. The participants' contributions to the research purpose are based on
their perspectives on the underutilization of industrial sites in Belmont. The participants who are currently
occupying the Belmont industrial sites either through freehold ownership or a lease were asked open-ended
questions that were broad and generalized in order to get a sense of the situation and establish interactions and
discussions with the participants who are currently occupying the Belmont industrial sites either through freehold
ownership or a lease. The pragmatists were employed because various types or methods of data collection and
analysis were employed. The researcher used varied methodologies to gain a deeper knowledge of the research
problem.
The study focused on industrial users' views on the usage of industrial buildings in Belmont. Non-experimental,
qualitative, quantitative, exploratory-descriptive, and context research methods are used.In this research both
qualitative and quantitative methods were used to answer the research objectives and questions. Johnson and
Onwuegbzie (2004) asserts that the use of a combination of qualitative and quantitative methods when carrying
out a research is encouraged. Quantitative research is a deductive approach incorporating practices and norms of
the natural scientific model and views of social reality as an external, objective reality (Bryman & Bell, 2007.
Qualitative research is a scientific method of observation to gather non-numerical data. The nature of the project
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required the adoption of both quantitative and qualitative approaches in order to come up with reliable and
credible data. This is called ‘triangulation method’ of researching and it enables researchers to obtain more
detailed understanding of the phenomena being studied (Cohen et al. 2013).
Parahoo (1997:218) defines population as the total number of units from which data can be collected, such as
individuals, artefacts, events or organisations. Burns and Grove (2003:213) describe population as all the elements
that meet the criteria for inclusion in a study with a list of characteristics that are required for the membership in
the target population. The criteria for inclusion in this study were, owners, persons working in those industrial
properties, the property managers, organisations in general the industrial properties.
Sampling frame by definition is a list of the people or items from which a statistical sample is taken (Warnecke,
2005). Furthermore Turner (2003) defined sampling frame as the source material from which the sample, in this
case the actual respondents are drawn. The proposed sample frame for this study consisted of Registered Valuer
and a town planner who are the key informants, the industrialists, and the general public. These were selected on
account that they are the ones directly linked with industrialisation
A sample that represents a part of the population was selected from industrial buildings in Belmont, Bulawayo,
Zimbabwe, and its residents. Data representative of the population from which the sample was taken can be
obtained from a carefully chosen sample.
Representative samples of 100 industrial properties in Belmont across the industrial area were selected.
The sample for the research under consideration was created using the purposive sampling technique. This
strategy, which falls under the category of non-probability sampling techniques, selects sample members based
on their expertise with, connections to, and experience in a research topic (Freedman et al., 2007). The sample
that was chosen for the current study had a special link to the phenomena under study, suitable and appropriate
job experience in the field of industry, as well as a demonstrated research background and understanding of raw
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details relating to industry. This method was chosen because the participants would be able to provide information
regarding the rate of operation in these industrial buildings due to their experience, which the researcher was
seeking. In this study only industrial production manager and the company owners are the ones who were eligibly
purposively chosen to participate in this study.
Sampling technique refers to the procedure adopted by the researcher in selection of units which are required for
the study sample (Etikan, 2017). The two main categories of sampling procedures are probability sampling and
non-probability sampling. In this instance, just probability sampling was used to choose the various target groups
for the study.
investigation, enough relevant work experience in the sector, a background in research that has been
demonstrated, and knowledge of the industry's raw data. This method was chosen because the participants would
have knowledge of the pace of operation in these industrial buildings based on their experience, which was what
the researcher was looking for. Only industrial production managers and business owners were specifically
selected as eligible participants in this study.
Sampling technique is the method used by the researcher to choose the units needed for the study sample (Etikan,
2017). The two major types of sampling procedures are probability sampling and non-probability sampling. In
this instance, only probability sampling was used for the selection of the several study target groups. In this case
for the purpose of this research non probability sampling technique will be used.
Involved segregation of the target group using criteria that were mutually exclusive (Westfall, 2009). In this
instance, the chief official from the ministry of industry, the general public, industrialists, and valuers were all
differentiated based on profession. In the study, stratified random sampling was performed. Kothari (2004)
describes stratified random sampling as the division of people into groups based on similar traits. The
manufacturing sector, retail, and other areas like information and technology, building and transportation, hotels,
and restaurants were the focus of the study.
According to Aliaga and Gunderson (2000), quantitative research collects numerical data and uses mathematically
based methods to analyze it in order to understand events. Four types of study topics lend themselves particularly
well to quantitative analysis. Tuckman (2001) continues by stating that questionnaires and surveys with
predetermined questions and options that participants check off a list to indicate their agreement with are
frequently employed in quantitative research. In the study, the author employed arranged observation questions
and questionnaires, the majority of which were closed-ended.
The benefits of using this research methodology include the ability to examine numerous data sets and hypotheses
more easily and reliably than the human brain could ever manage. Because it takes a lot of time to perform it by
hand, automation the implementation of ideas can make it go much more quickly. The problem is that it calls for
a profound mastery of multiple complicated areas that are challenging for the typical person to understand.
Research instruments, according to Manian (1994), are tools employed by researchers to identify solutions to a
linked problem. To gather the necessary data, the researcher used questionnaires, desk reviews, observations,
checklists, and interviews.
Primary data, according to Nordquist (2017), is information gathered directly from sources such as historical
documents, literary works, surveys, and interviews. To gather information from Belmont, the researcher used
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primary sources such as surveys, observations, and interviews. The researcher will be able to obtain firsthand
knowledge through interviews with the participants who completed the questionnaires.
3.11.3 Interviews
According to Bhattacherjee (2012), interviews offer a more customized method of data gathering than
questionnaires. The ability of the data collection technique to efficiently provide lots of data made it important
for this study (Bhattacherjee, 2012). Key informant interviews were conducted to gather key information.
Personal interviews have the advantage of allowing interviewers and interviewees to interact directly and
personally while also reducing non-response rates, but interviewers must possess the necessary skills to conduct
an interview properly (Fisher, 2005, Wilson, 2003). Information bias is avoided by gathering data about the
intellectual property, each participant, and their individual experiences.
3.11.4 Observations
An observation, according to Alder & Alder (1987), is a systematic data collection strategy. Because of the
exploratory character of this study, observations were chosen to answer the research question, which is centered
on answering a how and what type question (Silverman, 2001). The researcher was able to obtain firsthand
information on the different selected industrial properties in Belmont.
3.11.5 Questionnaires
According to Miles (1994), a questionnaire is a measuring tool for data collecting that employs thoughtfully
constructed questions. Because the design of the research questions for this study was not very complex,
questionnaires were used to obtain responses from respondents that were essential to the achievement of the
study's goals. Closed-ended questions were used together with retaining the clarity and accuracy of the study
questions in order to induce as much information as possible from the participants. But in order to have sufficient
the data collected, the researcher also used open-ended questions to obtain further explanations from the
respondents. The targeted respondents—industrialists and the general public—were given the surveys by hand
delivery.
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3.12 Data Presentation and Analysis
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4. To assess the effects of the underutilised
industrial properties to the property
industry.
5. To come up with policy
recommendations, remedies, solutions to
prevent further underutilisation of
industrial properties.
The researcher was the main data collector in this study because participant data provided verbal information
related to the research problem (Holloway & Wheeler 2002:8). This strategy provides complete details about the
issue.
The researcher took notes on what was seen on the ground in order to confirm the validity of the data that was
gathered. This gave the data collection process flexibility. The participants were led by their own experiences
rather than the researcher's prior understanding of the topic (Polit et al 2001:264).
The researcher was the main research instrument in this research. The role of the researcher was to elicit
information, during the interviews and questionnaires.
The researcher conducted interviews with a variety of participants with a semi-structured interview guide and the
following technique: the researcher used probing (verbal and non-verbal) interview strategies, such as probing or
exploring, silence, prodding, as well as summarizing. Could you elaborate more on that point? and similar
expressions were used by the researcher. maintained eye contact to encourage discussion among participants. As
a result, the researcher summarized the participants' final statements and compelled further discussion (Holloway
& Wheeler 2002:84). The researcher also questioned as to whether there were any additional questions or
comments. This made it easier to end the interview. To ensure understanding, the researcher summarized the
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interview by restating the ideas and opinions of the participants in his own words. The need for additional
interviews was explained to the participants in case any details remained unclear.
Note taking was done by the researcher. The researcher assured his respondents notes will be taken during the
interview.
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After gathering the data, the researcher immediately analyzed it and presented it using different data presentation
techniques, including tables, bar graphs, and maps. The information gathered through secondary data collection
and words in individual interviews was subjected to a qualitative content analysis. The data was also given to
quantitative content analysis in order to quantitatively identify correlations between discoveries, patterns, and
trends. The analysis's primary goal was to determine the effects of Bulawayo's underutilized industrial properties
on the real estate market.
Because it has to do with drawing conclusions about test results, validity is a developing and complex concept.
By concentrating on the results of the conclusions drawn, it is implied that they should be competent and
appropriate. Conclusions are assumptions, and when they are validated, it is equivalent to hypothesis-testing,
according to a University of Pretoria study report (as referenced in Messick 1989, p. 6). Since accurate
interpretations and actions are done based on the judgments of assessment results or test scores, validity is
therefore considered as evaluative judgments made on those inferences. These evaluations must be accurate and
true to the situation. Only assumptions about a test can be claimed to be legitimate, not the exam itself. According
to Messick (1989, p. 5) himself, the conclusions derived from test results or other indicators—rather than the
exam itself—are what need to be verified. It would be wrong to argue that a test is valid because only conclusions
about the test might be valid or not. An inference can be thought of as the interpretation a person makes about a
test or assessment findings. All research must adequately represent the subject being studied through the findings;
otherwise, the validity of the study is called into doubt (Gregory, 2000; Mahoney, 2008; Messick, 1989; Graziano
& Raulin, 2000).
3.16 Conclusion
The methods, equipment, and procedure that the researcher employed to obtain information are explained in this
chapter. Each technique's result aims to fulfill the aim of the research. The data gathered will be used to generate
information in Chapter 4.
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CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 Introduction
This chapter will analyse data collected from questionnaire surveys and interview sessions with the professionals.
The presentation was done through the use of pie charts, bar graphs and tables in line with study objectives and
research questions.
4.1 RESULTS
All of the selected 100 industrial companies were able to provide the number of employees present in their
companies in production.
Fig 4.1.Below is a bar graph showing number of employees
45 39
Number of employees
40
35
30
25
20 17
15 10 9
10 6 7
4 3 3
5 2
0
0-5 6-10 11-15 16-20 21-25 26-30 31-35 41-45 46-50Above 50
6 industrial companies (IC) range between 0-5 employees, 10 IC range between 6-10 employees, 7 IC have 11-
15 employees, 4 IC have 16-20 employees, 3 IC have 21-25 employees, 39 IC have 26-30 employees, 9 IC have
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31-35 employees, only 3 IC 46-50 employees, only 2 range between 41-45 employees and 17 IC employed more
than 50 individuals. According to Musonza (2015) Former President Robert Mugabe vowed to create 2,2 million
employment over his current term's five years when he ran for reelection in July 2013. Since his inauguration,
however, there was more than obvious signals of the economy going into collapse than ever before. The
unemployment rate was estimated at 90% by the UN Development Programme. Statistics from the Retrenchment
Board, a government organization, presented a sad picture and showing that at least 100 firms closed down and
also more than 1000 individuals were laid off in the first quarter of 2015. This relates to the researchers findings
in such a way that most industrial firms had to retrench their employees due to the economic decline faced by the
country especially during the 2008 period hence the reason for most of the firms having less that enough
employees as expected of an industrial property while those firms which were able to withstand the effects of
economic decline were able to keep their employees due to the fact that most of these firms are multinational
firms for instance Delta Beverages was able to withstand the effects of the struggling economy through cross
subsidization of Delta Beverages Zimbabwe by the profits made by other branches in other countries with well
performing economies. Musonza (2015) also states that, the sharp decline in manufacturing in the last 20 years
since the country adopted IMF-World Bank market reforms leading to the longstanding internal political conflict
is the most prominent in terms of job losses.
Fig 4.1.2 Pie chart showing number of employees
0-5
3 17 6 10 6-10
2 7
9 4 11-15
16-20
3
39 21-25
26-30
31-35
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deficiency in demand. Demand for industrial goods depends on the purchasing power where according to World
Data Artlas (December, 2021) Zimbabwe purchasing power parity was at level of 50.9 LCU per international
dollars in 2021, up from 22 LCU per international dollars previous year, this is a change of 131.08%, of
community where as in Zimbabwe the high unemployment rate which according to Alois Vinga (July, 2022) who
updated a report on NewZimbabwe.com which stated that “ZIMBABWE’s unemployment rate now stands at
19% basing on the strictest definition of employment, Zimbabwe National Statistics Agency (ZIMSTAT) has
reported”. means the majority of the population is below the poverty datum line hence are unable to afford some
of the locally produced goods due to their high prices which is as a result of increased production cost due to the
unstable inflation rate in the country and the country has not been able to create sufficient demand for domestic
products in the foreign markets, these products include tyres, cango products, chemicals, sculptures, tinned foods
etc. Intense competition from foreign products reduces revenue and profits of the local industrial firms as foreign
firms enjoy economies of scale enabling them to charge lower process unlike local industrial firms hence due to
low revenue inflow and ever fluctuating inflation rate increases expenses unexpectedly hence the reason for
operating below full capacity by most industrial firms in Belmont, where according to a report by AFRICA
REPORT (June, 2022) states that a new blow to the purchasing power of Zimbabweans. The latest figures from
the Zimbabwe National Statistics Agency showed Saturday that the country’s annual inflation rate reached 191%
in June 2022. The demand factor is demand factor was described by Tejvan Pettinger (Nov, 2017) who claims
that when there is not enough demand in the economy to support full employment, demand deficient
unemployment arises Alois Vinga (July, 2022) updated a report on NewZimbabwe.com which stated that
“ZIMBABWE’s unemployment rate now stands at 19% basing on the strictest definition of employment,
Zimbabwe National Statistics Agency (ZIMSTAT) has reported”. Consumers will purchase less products and
services during a recession (a period of negative economic growth). By selling fewer products, businesses
minimize production. When businesses produce less, there is less need for workers, which results in either worker
layoffs or a reduction in hiring new employees. In the worst instance, a firm might go bankrupt and fire everyone
due to the demand decline being so severe. The idea of J.M. Keynes, who created his General Theory of Money
in 1936 against the backdrop of the Great Depression, is known as demand deficient. Due to the decline in demand
and reduction in the money supply during the Great Depression, unemployment increased dramatically in the US.
In many instances, a rise in demand deficiency can worsen the recession by further depressing aggregate demand.
Reduced demand and lower economic output are caused by rising unemployment, which further reduces the
demand for labor. Furthermore, as households worry about losing their jobs, the rise in unemployment lowers
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consumer confidence. It may set off an upward spiral of rising unemployment and declining demand. A higher
rate of long-term unemployment may result from demand-deficient unemployment. When people are made
unemployed they may become de-skilled and demotivated. Therefore, they may find it more difficult to get work
in the future. Therefore a period of demand-deficient could cause higher structural unemployment and reduce the
economies long-term productive capacity.This can then mean that firms will find it hard to attain full capacity
utilization as a result of lack of demand of products as the population is unable to afford the products due to
unemployment all resulting from an economic depression. The current utilization level of industrial properties in
Belmont is shown by the graph below.
Fig 4.2 Current Level of Operation of industrial properties in Belmont.
45 42
40
Number of Industrial
35
30
Properties
25 21
20
15 10 9
10 6 7
5
5
0
100% 90-94% 80-84% 75-79% 50-54% Below 65-69
50%
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50 45
Number of Industrial
45
40
35 30
Properties
30
25
20 13
15
10 7 5
5
0
The graph above shows that 30 industrial properties (IP) are in the manufacturing sector constituting 30%, 7 IC
are in the retail sector constituting 7%, 5 IC are in the service sector constituting 5%, 45 IC are in the light
industrial sector constituting 45% and 13 IC in the special industry constituting 13% making the Total 100%.
According to the researchers findings Belmont is currently highly dominated by light industrial firms where there
is carpentry and carbinetery, vehicle repair garages, printing services, commercial laundry etc as shown bt the
Pie chart below.
Fig 4.3.1 Pie chart below shows the Light industrial properties in Belmont
Packaging
9% Printing
Carpenty and 20%
Carbinetery
16%
Commercial
Mill work
laundry
4%
13%
Metal work
9%
Vehicle repair
garages
29%
this is due to the fact that with the economic situation that struck Zimbabwe that led to increase in operational
and production costs of industrial firms this also was worsened by the increase in interest rates and ever increasing
inflationary rates left most firms with no options but to reduce their level of operation and most of the firms closed
down, the industrial site was then taken over by light industrial operators due their relatively low cost of operations
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as compared to manufacturing sector this is supported by an article by A.H.J. Bert Helmsing (February 1999),
several businesses, including G&D Shoes, ZECO Engineering Ltd, two textile mills, an electrical consumer
products producer, and smaller apparel enterprises, truly went out of business in 1992/93. Others survived by
cutting costs, laying off employees, and downsizing, which meant that some had to switch their operations from
the manufacturing sector to the less capital-intensive sectors like light industries in order to survive. According
to the researchers findings that the manufacturing industry averagely dominates the Belmont industrial site but
not as much as before since at least 65% of the manufacturing industries in Belmont closed down, this is in line
with a report by Bulawayo24news(February, 2021), THE labor movement, consumer rights organizations, small
businesses, and unofficial traders have bemoaned the ongoing collapse of Bulawayo industry in the wake of
allegations that up to 60% of businesses had closed their doors. which is in support of the researchers findings,
while the ones left are those which are multinational companies which are able to survive the harsh economic
conditions through cross subsidization by other profit making branches for instance Delta Beverages Zimbabwe
can be cross subsidized by its South African branch to allow for continuation of operations. The smallest portion
of Belmont industrial site is dominated by the service industry with 5% of the selected industrial properties, which
includes tailors, cycle repairs, television repairs, key cutting and modification experts etc, according to the
researchers findings these industrialists in the service industry are able to withstand the harsh economic decline
effects due to the fact that they require low startup costs and most of them are actually sharing industrial properties
as a way to reduce rental expenses and also their operations lack the capacity to fully utilize the industrial
properties hence the strategy of sharing.
Fig 4.3.2 Table showing Percentage of Industrial Property use of various sectors in Belmont
50% 45%
% of Indusrial properties
45%
40%
35% 30%
30%
25%
20% 13%
15%
10% 7% 5%
5%
0%
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4.4 Export or Import:
Table 4.4 The table below shows statistics on the number of participants who responded on whether they
produce for export or local consumption.
Statistics
Local, Export or Both
N Valid 100
Missing 0
The diagram above shows that all that all 100 selected industrial companies responded to the question that whether
they produce for export, local consumption or both.
Fig 4.4 Diagram showing number of industrial properties producing for either Export, Local or Both
100 89
90
Number of Industrial
80
70
Properties
60
50
40
30
20 9
10 2
0
Local Local and Export Eport
From the selected 100 industrial properties in Belmont, 89% was producing strictly for local consumption, 9%
was producing for both export and local consumption while only 2% of the selected industrial properties
specialized in exporting only. Due to the lack of technological advancement and lack of investment in new ways
of producing goods as a result of lack or shortage of finance to cater for the purchase the much needed machinery
and equipment of producing new products to introduce into the market the majority of industrial firms from the
researchers findings are producing for local consumption since their products are of mostly substandard and
relatively poor quality to be sent and sold on international markets. The shortage of finance is as a result of the
inability of the firms to borrow funds from financial institutions due to the fact that most of these firms lack
exclusive right over the industrial properties they are currently operating in but rather have possessory right
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through long term leases of which these right are not recognised for use of the industrial properties for collateral
security and at the same time most of these firms cause environmental hazard hence financial institutions do not
agree with such negative environmental impacts. This is also to some extent in line with findings of Musonza
(2015), which states that because individuals, businesses, and the government cannot obtain finance, the economy
is in this situation. The lack of significant lines of financing or reserves in the nation makes it difficult for the
Reserve Bank to operate as a lender of last resort, and businesses are having trouble refinancing their debt. We
can fairly say that the central bank has no visible leverage to affect the money supply, and there is no budgetary
flexibility either. Hence in simpler terms in as much as the financial institutions would want to offer their help
they fear that firms have no capacity of being able to pay back and lack of collateral security makes the whole
situation a bit more complicated.
Table 4.5.1 Table showing statistics on number of key informants who responded to the question on
whether there is possibility of improvement for industrial properties in Belmont.
Statistics
Improvement
N Valid 4
Missing 0
The table below shows that from the 4 selected key informants 3 of them had a strong belief that the industries
had the potential to improve while 1 of the informants was against the fact that the industries can improve. Based
on the researchers findings the industrial firms had a better chance of improvement given the fact that they had
access to finance and at the same time access to foreign currency from financial institutions but however the key
informants based on their experience in the industry they believed that improvement was very much possible
given the fact that the quantity of foreign produced goods on the domestic market was to be limited to a minimum
so as to allow dominance of local goods so as to gain revenue for the domestic industrial firms much needed for
their improvement.
Table 4.5.2
Improvement
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 3 75.0 75.0 75.0
NO 1 25.0 25.0 100.0
Total 4 100.0 100.0
Fig 4.5.2 The graph below shows the response of the key informants on the ability of industrial properties
to improve.
Is improvement in terms of utilization possible?
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Table 4.5.3 Table showing statistics for key informants who responded to Current level of Utilisation of
product capacity in industries.
Statistics
What is the current level utilisation of product capacity in industries
N Valid 4
Missing 0
Table 4.5.4 Frequency table showing Current level of Utilisation of product capacity in industrial
properties in Belmont.
What is the current level utilisation of product capacity in industries?
Valid Percent
Frequency Percent Cumulative Percent
The table above according to the researchers findings states that all the key informants rated the product capacity
utilization of all industrial properties operating in Belmont industrial site as below 50%. This is supported by an
article written Blessed Mhlanga (October 6, 2015) states that a team, which had diplomats and regional bankers,
toured companies in Midlands and Bulawayo to assess the industrial companies capacities and constraints. Lobels
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flour is still hand-fed, the production chain snails through the ovens, which consume high levels of electricity
owing to old technology and low efficiency levels. Human labour is still needed to pack the famous cookies and
other products at the end of the production line pushing company overheads and the cost of production up,
resulting in the uncompetitive pricing of finished products. The story is no different with most manufacturers in
Zimbabwe, whose companies rely on obsolete technology to fire up today’s industry. Lobels Biscuits and Sweets,
managing director, Clinton Lecluse said if his company could acquire new machinery, production costs could be
halved with prices becoming more competitive. Therefore this survey is in support of the researcher’s findings
that the product capacity utilization of industrial firms in Belmont is below 50%.
Table 4.6.1 Key respondents: for Industrial rate of productive capacity in relation to plant and machinery
available
With respect to machinery and equipment available at this moment what is the
industrial rate of productive capacity utilisation
Valid Percent
Frequency Percent Cumulative Percent
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The table above shows 4 respondents with 100% rated the productive capacity in relation to plant and machinery
available as below 50%. According to a report by Blessed Mhlanga (October 6, 2015) the Confederation of
Zimbabwe Industries (CZI) president, Busisa Moyo said most of his members were being weighed down by old
machinery, saying the need to retool was critical for Zimbabwean industry. He noted that after the economic
collapse during the hyper-inflationary era, most companies were set back 15 years and had lost market share
completely. “The need to retool is there and most companies, who are members of CZI, were set back during the
hyperinflationary era, but what is important for us is to get the market share back and after getting it we consider
retooling, where according to the researchers findings in Belmont the is need for new technology in production
processes for those producing chemicals, improved machinery and equipment especially those producing clothes
and. No industrialist would want to retool and then look for the market,” he said. This is in line with the researchers
findings in such a way that inability of the industrialists to purchase better performance machines and equipment
means their productive capacity is low due inefficient production process and inability to cut down on cost
associated with use outdated machinery which consumes large electricity hence increased operational cost there
reducing their machinery and plant productivity capacity utilization.
Table 4.7 The table below show the number of key informants who responded to the question that what
are the problems that can be immediately solved.
Statistics
Table below shows that 4 participants highlighted each that shortage of raw materials, lack of technology, lack of
motivation and lack of skilled labour are the major cause of under-utilisation of these industries. According to the
researcher’s findings shortage of raw materials is a result of shortage of foreign currency to import surplus raw
materials like rubber for the tyre manufacturing firms and also chemical concentrates for the firms producing
chemicals in Belmont as some of our locally found raw materials will not be able to sustain the much needed
quantity alone and might sometimes be not even available for instance rubber for tyre manufacturing need to be
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imported. Lack of technology also comes back to the issue of lack of finance to purchase the much needed
technology for improving the production process. Motivation levels of the employees is basically low due to the
fact that they are receiving minimum wages which are barely enough to sustain their families until the next
payment is received, According to a report by Nqobile Bhebhe for theAfricareport published in February 2015,
while the percentage of adults without jobs has decreased over time, the vast majority earn less than $100 per
month, which is barely enough to get by given our current economic situation and the Zimbabwe National
Statistics Agency's projected inflation rate of 191 percent in June 2022, hence the workforce lack that driving
force of enjoying working but rather feel like slavery which reduces productivity and it is also because of these
low wages which led to shortage of skilled labour as many of the skilled personnel left the country in search of
greener pastures and the void has been difficult to fill in since it’s the route taken by most skilled workers.
Table 4.7.1 The table below shows response from the key informants on problems that can be immediately
solved
Problems to be immediately solved
The table below shows that 31 participants were able to answer the question on what is the current level of
productive capacity utilization.
Table 4.8
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Statistics
Statistical views from respondents who were able to provide information that is the number of response for current
level utilisation of product capacity in the industry.
Table 4.8.1
Current level of Productive capacity utilisation
Cumulative
Frequency Percent Valid Percent Percent
Valid 100% 2 6.5 6.5 6.5
95-99% 5 16.1 16.1 22.6
90-94% 3 9.7 9.7 32.3
85-89% 2 6.5 6.5 38.7
80-84% 6 19.4 19.4 58.1
70-74% 6 19.4 19.4 77.4
60-64% 7 22.6 22.6 100.0
Total 31 100.0 100.0
The bar chart below shows that from the selected 31 respondents 2 believed that industrial properties were
operating at a percentage range of 100% with a percentage of 6,5%, 5 IP were operating at 90-95% with 16,1%,
3 IP were operating at 90-94% with 9,7%, 2 IP were operating at 85-89% 6,5%, 6 IP were operating at 80-84%
and 70-76% with 19,4% each and 8 IP were operating at 60-4% with 22,6%. According to the researchers findings
only 6.5% of the 31 selected industrial are operating at full productive capacity utlisation, this is due to the fact
that these firms have access to finance and at the same time enjoy economies of scale hence allowing them to be
able to dominate the market with affordable prices for the publics and ability to purchase new machinery and
equipment which improves their production efficiency hence in the long run reducing their operational cost,
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allowing them to invest more in ways that improve their productive capacity utilization for instance Delta
Beverages Zimbabwe which is a multinational company. 22.6% of the selected industrial properties in Belmont
are operating at the range of 60-64% due to the inability to source funds needed to invest into improving efficiency
of their production operations hence productive capacity utilization is reduced by using outdated technology and
machinery and equipment some of which consume too much electricity which increases operational costs of the
firms and also losses due to too much defects during the production process hence reducing productive capacity
utilization of these firms. This is also supported supported by an article by Blessed Mhlanga (October 6, 2015)
which states that National Blankets is still in the dark ages, still supplying knitted blankets whose major consumers
are now prisons and hospitals. This at a time the world has moved to woven blankets commonly referred to as
“two in one”. Even still, the use of machinery first employed in 1940 pushes the company out of business outside
government protection through imposition of stiff taxes or the banning of the cheap imports into the country.
Therefore such behaviors by will hinder attaining full productive capacity utilization of these firms.
Fig 4.8 Current level of productive capacity utilisation
Table 4.8.2.1
Statistics
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Missing 0
All 39 selected participants were able to provide labour capacity utilisation level in the industry as shown above.
Table 4.8.2.2 Below is a frequency table showing response by industrialists on labour capacity utilization
in Belmont
The diagram below shows that 2 of the selected industrial properties were operating at 100% with 5,1%, 3 IP
operating at 85-89% with 7,7%, 5 IP operating at 80-84% and 65-69% each with.12,8% each, 3 IP operating at
90-95% with 7,7%, 7 IP operating at 96-99% with 17,9% and 10 IP operating Below 50% with 25,6% giving a
total of 100%. According to the researchers findings 25.6% of the selected industrial firms have a labour capacity
utilization which is below 50% this is due to shortage of raw materials needed for the production processes so as
to attain 100% labour capacity utilization as shortage of raw materials means that employees are not being utilized
to their full potential, lack of access to finance is the major cause of inability to purchase the much needed raw
materials as on their own these firms are currently not in a position to make enough finance to wholly finance
their businesses due to demand deficiency caused by high unemployment rate meaning the majority of the
population is below the poverty datum line hence cannot afford purchasing the products thus low income revenue
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for the firms hence inability to source the much needed finance on their own hence leading the labour force not
being fully utilized. 5.1% of the selected industrial properties are operating at full labour capacity utilization,
these firms are able to attain this full capacity due to cross subsidization and enjoying economies of scale hence
these a competitive advantage in the industrial sector for instance Delta Beverages Zimbabwe id a good example
for such firms.
Fig 4.8.2.1 The bar graph below shows labour capacity utlisation for the selected industrial properties in
Belmont
Table 4.8.3 Statistics for response on the question of receiving training related programs.
Statistics
Do you receive any training related to your job occupation?
N Valid 24
Missing 0
Fig 4.8.3 The pie chart below shows that from the 24 selected respondents 62,50% received training related
to their occupation while 37,50% said they did not receive any training related to their occupation.
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4.8.4 New Products introduced into the Market:
Table 4.8.4 Frequency table for new products introduced into the market by the industrial companies.
New products
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 8 42.1 42.1 42.1
NO 11 57.9 57.9 100.0
Total 19 100.0 100.0
19 industrial companies were selected to answer on whether they have introduced new products into the market,
only 8 industrial companies introduced new products into the market with 42.1% while 11 industrial companies
said they did not introduce any products into the market with 57.9% as show by the diagram below. According to
the researchers findings 57.9% of the firms in Belmont have not introduced new products into the market due to
the reasons that there is lack of finance to undertake new product investments. Firms are unable to source funds
to fund their businesses due to high interest rates brought about by the hyperinflation in Zimbabwe and at the
same time most of the firms in Belmont industrial site have leasehold rights to the properties which cannot be
used as collateral security to acquire finance from finance institutions because they require exclusive rights over
a property for it to be used as collateral security. This is supported by an article by Blessed Mhlanga (October 6,
2015) which states that Moyo had no kind words for the finance sector, saying they had failed to come to the aid
of industry because they were either slow or lacked innovation, forcing Zimbabwean companies to engage outside
financiers. “Local financiers offer facilities that are not attractive to industry especially for retooling because an
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18 month loan at a cost of 35% is not ideal for capital projects such as buying machinery. In fact these rates
incentivize smuggling at our border posts,” he said. He said in view of the state of machinery in Zimbabwean
industry, CZI was moving to have suppliers of genuine machinery and equipment at next year’s Zimbabwe
International Trade Fair, so that they assist old factories which are now re-emerging. Moyo said CZI will also
invite bankers at the premier trade fair, both locally and internationally, in an effort meant to bring lasting solution
to the machinery crisis, which has hit the country. The Africa Export-Import Bank said it was willing to provide
funding after assessing the industry situation in Kwekwe, Gweru and Bulawayo.
Fig 4.8.4 Below is a bar graph showing response on production of new products by the selected industrial
firms in Belmont
Table 4.8.5 Frequency table on 19 participants who provided information on whether they were facing
power cuts.
Power cuts
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 4 21.1 21.1 21.1
NO 15 78.9 78.9 100.0
Total 19 100.0 100.0
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19 industrial companies responded on whether they faced power cuts in their operations, 4 of these companies
provided information that they faced power cuts in their operations with 21.1% while 15 industrial companies
provided information that they were not facing any power cuts with 78,9% giving a total of 100%. Power cuts by
21,1% of industrial properties in Belmont is to a larger extent supported by a report by Farai Shawn Matiashe
(September 2021) who stated that In mid-September this year, Zimbabwe’s power utility company imposed load
shedding schedules lasting up to 12 hours. Efforts to boost electricity generation in the country have been
hampered by corruption, particularly during the tender processing. However, these power cuts are set to further
weaken an already fragile economy. Zimbabwe needs an average power demand of about 1735MW, but the power
utility company’s total power supply currently ranges from 1240MW to 1600MW, according to ZETDC. John
Robertson, a Harare-based economist, says Zimbabwe’s economy which is on a recovery path cannot afford to
have such prolonged power cuts. “They could force the government to revise downwards its GDP Gross Domestic
Product forecast, perhaps to 5.1%,” he tells The Africa Report. These power cuts gave industrial firms the
motivation to use alternative sources of power such as generators and solar systems as a way of reducing the
impacts of power cuts hence the reason for 78,1% of industrial properties in Belmont not complaining about
power cuts whole the other 21,1% either had shortage of finance to purchase alternative sources of power or were
too reluctant to proffer solution to the problem. Up until there is still intense power shortages in Zimbabwe leading
to at least 6 hours loadshedding schedules.
Fig 4.8.5 The graph below shows the response by different industrial properties in relation to power cuts.
The diagram below shows that from the 19 selected industrial companies 12 companies with 63,2% provided
information that they were facing water shortages while 7 industrial companies denied that they were facing water
shortages in their operations. According to the researcher’s findings, there has been shortage of safe water for
provision to residents and industrial firms in Zimbabwe as a whole. This shortage is due to continuous seasons of
inadequate rainfall hence reduced country water reserves and at the same time outdated water treatment plants
which loose most of the water through leakages due to lack of maintenance of these water treatment plants. This
is supported by Nyasha Chingono a reporter of The Guardian website news who wrote in his report that Zimbabwe
is in the grip of a nationwide water crisis due to poor rains and drought. Most local authorities have been forced
to ration water. But Bulawayo, 450km south of Harare, is facing the worst crisis. Edwin Sibanda, the Bulawayo
health services director, says the council is distributing water through the city using bowsers “where possible”.
But it’s not enough. The water challenges have added to Zimbabwe’s deteriorating economic situation. Inflation
is running at more than 800%, and basic foods are often hard to find. The researchers finding then noted that the
few firms not facing water shortages are those who had to drill boreholes as a means of safe water provision for
their production purposes in an attempt to curb the shortage of safe water to use.
Fig 4.8.6 Below is a graph showing the response on water shortages by industrial properties in Belmont
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4.8.7 Obstacles being faced by industrial companies in their operations:
Table 4.8.7 The table below shows statistics for industrial companies which responded to the question of
obstacles being faced by the industrial companies in their operations.
Statistics
The table below shows responses from 36 industrial companies on obstacles faced in their operations where 2
industrial properties with 5,,6% pointed crime and theft, 2 IC with 5,6% pointed out corruption, 2 IC with 5,6%
pointed out electricity shortage, 4 IC with 11,1% pointed out water shortage, 3 IC with 8,3% pointed out tax rates,
only 1 IC with 2,8% pointed out access to land, 5 IC with 13,9% pointed out custom regulations, 5 IC with 13,9%
pointed out lack of skilled labour, 5 IC with 13,9% pointed out access to finance an 7 IC with 19,4% pointed out
business permits as obstacles faced in the industrial companies operations. According to the researchers findings
business permits are the main obstacle being faced by industrialists, this is due to the fact that the process of
acquiring business permits tends to be a complicated and tiresome process which requires a lot of effort and is
time consuming. Time spent on trying to acquire these permits can be used productively to benefit the business.
Access to finance is also another obstacle dominating the industrial firms in Belmont. This is due to the fact that
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the country’s economy is struggling at the moment with ever increasing high inflationary rates meaning that by
the time of repayment the finance borrowed may be worth even less hence financial institutions are being strict
on who they are providing finance to this is in context with Musonza (2015), who states that the economy is in
this state because consumers, businesses and the government have no access to credit. The fact that the country
has no meaningful lines of credit or reserves reflects on the Reserve Bank‘s inability to act as lender-of-last-resort
and companies are running into refinancing difficulties. There is no visible leverage on the central bank to
influence the supply side of money and we can as well fairly say there no fiscal room for maneuver, therefore
since most of the industrial firms in Belmont have leasehold rights on the industrial properties they are limited
from using them as collateral to acquire finance. Shortage of skilled was another obstacle dominating in responses
from industrialists where shortage of labour once again was as a result of retrenchment of employees during the
period between 2008 and 2014 where most firms closed down and the remaining ones had to scale down as a way
to reduce operational costs, this then led to most of the retrenched employees to search for employment in other
countries leaving the host country worse of and up until today once one acquires a unique skill going outside the
country seems to be the first and best option available, this is supported by Musonza (2015),who noted that
prominent problems facing the country are factory closures, rising youth unemployment, a liquidity crunch, a
negative country-risk premium arising from high levels of public debt, declining international capital inflows
(including remittances), and infrastructure bottlenecks (transport, water, energy).Official figures show that at least
4 600 companies were closed between 2011 and October 2014 last year, with thousands losing their jobs. At least
60% of all companies are currently under judicial management. There are many notable names that have been
wiped off in the manufacturing map but one key name that government has battled and failed to rescue is the food
and beverages processing giant Cairns Holdings known for a wide variety of groceries and wine.
Table 4.8.7.1 Table showing response from industrialists on Obstacles being faced in industrial operations
in Belmont.
Obstacles faced by industrial properties in their operations
Cumulative
Frequency Percent Valid Percent Percent
Valid Crime and theft 2 5.6 5.6 5.6
Corruption 2 5.6 5.6 11.1
Electricity 2 5.6 5.6 16.7
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Water shortage 4 11.1 11.1 27.8
Tax rates 3 8.3 8.3 36.1
Access to land 1 2.8 2.8 38.9
Custom regulations 5 13.9 13.9 52.8
Table 4.8.8 The table below shows statistics for response on problems that can be solved. All 13 respondents
were able to provide a response to this research question,
Statistics
Problems that can be solved
N Valid 13
Missing 0
The table below shows responses from 13 participants on problems that can be solved, 3 participants with 23,1%
pointed out outdated technology, 1 participant with7,7% pointed out lack of motivation, 3 participants with 23,1%
pointed out shortage of raw materials and 6 participants with 46,2% pointed out lack of skilled labour giving a
total percentage of 100%. Shortage of skilled labour such as qualified specialists in chemical engineering,
technicians especially in the tyre manufacturing and chemical manufacturing plants to ensure that machines are
running smoothly so as to avoid deterioration, with this being based on the researcher’s findings highly affecting
industrial properties in Belmont. This is mainly due to the economic situation in our country where the majority
of employees with unique skills in Zimbabwe were not being paid enough to provide for their families hence led
to brain drain as the skilled labour fled the country in search of better paying job opportunities, this is supported
by an article by Pristine Manomano (FEBRUARY 2021) Despite having one of the highest literacy rates in the
world, according to a reporter for The Herald, the country has a serious skills deficit of up to 62 percent. The audit
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reveals that while Zimbabwe's literacy rate is at 94 percent, the national skills level is only 38 percent on average,
with some sectors having a skills gap of up to 95 percent, according to allAfrica (February, 2021). Professor
Amon Murwira, Minister of Higher and Tertiary Education, Innovation, Science, and Technology Development,
recently stated that the country was experiencing a 95% skills shortfall in the medical sector and a 94% skills gap
in the engineering industry, which was impacting service delivery and economic growth hence showing that the
whole business industries is in shortage of skilled labour including the area under study, Belmont. According to
the researchers findings outdated technology is also another problem being faced by industrialists in Belmont,
this was due to lack of finance by the industrial firms to invest in new technology as new technology is very much
costly hence unless industrialists are provided for with finance by financial institutions or aid by the government
it is highly likely that new technology can be introduced soon. According to a Blessed Mhlanga article from
October 6, 2015, Lobels Biscuits and Sweets is operating its Bulawayo factory on outdated ovens that were
installed in 1957, which has shocked a visiting team led by the Office of the President and Cabinet about
Zimbabwe's industry's declining capacity utilisation. Because of outdated technology and poor efficiency, flour
is still manually fed into the production process, which causes the ovens to operate slowly and use a lot of
electricity. Famous cookies and other items still require human labor to be packaged at the end of the
manufacturing line, driving up business expenses and the cost of production and leading to uncompetitive pricing
of completed goods. Clinton Lecluse, managing director of Lobels Biscuits and Sweets, claimed that if his
company could purchase new equipment, production costs might be cut in half and prices would become more
competitive. But he claims that this would take a long time because retooling requires expensive and occasionally
scarce outside investment. In other words, funding for the industries that need it will greatly help to solve the
technological problem. As a result, this article is in favor of the researchers' conclusions, demonstrating the
validity of the study results.
Table 4.8.8.1 Table below shows responses from industrialists on problems that can be solved
Problems that can be solved
Cumulative
Frequency Percent Valid Percent Percent
Valid Outdated technology 3 23.1 23.1 23.1
Lack of motivation 1 7.7 7.7 30.8
Shortage of raw materials 3 23.1 23.1 53.8
Lack of skilled labour 6 46.2 46.2 100.0
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Total 13 100.0 100.0
4.9.1 Occupation:
Table 4.9.1 The table below shows statistics for respondents on Occupation
Statistics
Occupation
N Valid 10
Missing 0
The table below shows various occupations as provided by 10 respondents where there is a student, functional
supervisor, chemical engineer, IT officer, human resource manager, general hand, security guard, tailor, truck
driver and forklift driver each contributing 10% giving a total of 100%
Table 4.9.1.1
Occupation
Cumulative
Frequency Percent Valid Percent Percent
Valid Student 1 10.0 10.0 10.0
Functional supervisor 1 10.0 10.0 20.0
Chemical engineer 1 10.0 10.0 30.0
IT officer 1 10.0 10.0 40.0
Human resource manager 1 10.0 10.0 50.0
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Total 10 100.0 100.0
4.9.2 Age:
Fig 4.9.2 Table below shows statistics of participants who responded on their Age.
Statistics
Age
N Valid 10
Missing 0
The diagram below shows response from participants on their age where the age range 20-25 had 2 respondents
with 20%, 35-40 also had 2 respondents with 20% and Above 40 had 6 respondents with 60% giving a total of
100%. According to the researchers findings the Belmont industrial site is highly dominated by employees above
40 years old constituting 60% of the selected participants. This is due to the fact that this age group is not choosy
when it comes to work due responsibilities imposed on them as heads of their families and also these participants
acquired the necessary skills in their employment during the era when Belmont industrial site was fully functional
making it hence they find it necessary to supply their skills where they are much needed, experience these
respondents aided the researchers study with reliable information based on their experience in Belmont industrial
sector for many years. The age range of 20-25 years constituted only 20% of the respondents, this is due the fact
that that this generation is too choosy and prefers more flamboyant jobs as opposed to industrial jobs.
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4.9.3 Gender:
The pie chart below shows that from the 10 selected participants, 7 of them were male with 70% while female
were 3 with 30% giving a sum of 100% on gender. According to the researchers findings based on gender females
are more dominant in industries such as textile and leather manufacturing industries and due to social moral which
some still accept that female are better of at home looking after the family doing chores leads to males dominating
the industrial sector more as evidenced by a survey taken by Brighton Nyangadza et al (February, 20220) showed
that the female LPR was 90% of the male rate, with 73.7% for males and 66.0% for females, respectively (women
to men parity). The ambiguities surrounding these data, however, had already worsened since 1999. (Van
Klaveren et al., 2010). The low percentage of women working in manufacturing, even in traditionally female-
dominated sectors like textiles, apparel, and leather, is remarkable. If roughly accurate, the estimate of the World
Economic Forum's global gender gap report that women recently made up about 43% of the labor force (Van
Klaveren et al., 2010, Global Gender Gap Report 2021) would indicate that approximately 1,550,000 women
employed approximately 730,000, or one-third of all women less than a wage. The low percentage of women
working in manufacturing, even in traditionally female-dominated sectors like textiles, apparel, and leather, is
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remarkable. Companies in Zimbabwe have a variety of approaches to finding solutions, while certain efforts for
continuous improvement and refresher training have never been sufficient to address the issues (Annesley &
Gains, 2013; Kalev et al., 2006). The majority of the time, managers' barriers that prevent the administration of
equality for chances in Zimbabwe come from their failure to promote decentralization in order to satisfy short-
term performance indicators inside their organizations (Sharma, 2016; Shepherd, 2014).The attitude of these
managers is chief amongst all other factors which cause the inequalities and discrimination. Due to this, the
governments have taken on board the Affirmative Action (AA) so as to reduce segregation (Guillaume, 2015;
Shepherd, 2014).
Fig 4.9.3 Pie chart showing Gender balance in Belmont according to the selected respondents.
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CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.0 Introduction
This chapter draws conclusions and recommendations. Conclusions constitutes the summary of major findings
from the pilot study, interviews, research instruments and the analysis of facts linking them to the objectives of
the research study. Recommendation section highlights the practical proposals of the study and suggests further
research studies.
5.1 Discussion
According to the research, there is a clear indication that the informal sector, which includes churches and other
non-GDP-contributing activities, will have more room to grow as specialized industries continue to decline in
number and other industries grow. Since the majority of industries in Belmont operate at less than full capacity,
this provides a realistic picture of the sectors that are active in Bulawayo. Belmont has unlimited access to the
road system, infrastructure, and the CBD.
The majority of respondents in this study cited the lack of skilled labor as the most pressing issue, but access to
finance was the most pressing problem they encountered. Based on the data gathered, however, lack of
motivation emerged as the main problem that must be addressed in order to fully utilize industrial properties and
was also cited as a shortage of raw materials. In the video that Mvengemvenge Pictures (2019) released online,
Chiwenga, the vice president of Zimbabwe, claims that there are individuals within the industrial sector who
engage in financial terrorism. Even after the ministry requested an interbank in November 2018 and received it
in February 2019, many people continue to visit the presidential offices promising that they will make sure this
will work. According to experts, the majority of businesspeople and industrialists spend their time in churches
rather than at work. The majority of businesses in Bulawayo close early, and on Saturdays and Sundays they are
closed because reduced industrial productivity lowers the capacity of industrial properties. At the end of the day,
the industrial sites where the machinery are located are seriously, extremely underutilized as they deteriorate
without being properly utilized.
The industrial experts largely conclude that Belmont's industry operates at less than full capacity. According to
the information provided by the respondents, inadequate equipment, outdated machinery, a lack of money, and
financial and economic collapse are some of the reasons for such performance. We have lost a lot of highly skilled
workers to other nations, which has had an impact on the quality of our products, as well as other factors, which
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contribute to the underutilization of industrial properties. With limited exports, our products are now being used
locally, which denies the industry the hard money it needs to operate at a high level. Other opinions that were
gathered suggested that the scarcity of raw materials in industries as a result of foreign currency shortages and
economic instability
confidence of investors. The majority of businesses are currently functioning at less than full capacity due to a
lack of foreign currency, have halted production until the situation stabilizes, and are unable to pay the employees
due to the decline in demand. Because there are fewer workers due to unemployment, profit levels have also
decreased. The lack of modern, cutting-edge machinery and the use of outdated technology, equipment, and
machinery, as well as company closures, are the biggest issues that need to be resolved. The fact that indigenous
business owners took over industries in 2000 despite lacking the necessary management skills is another cause of
underutilization. Industry machinery is currently dated. Owners of industries lack the resources to recapitalize.
The researcher noticed that Bulawayo's industrial sector accounted for the majority of significant investments
made at a greater scale. The neighborhood was created by renowned architects and builders and carefully located,
according to the study, to support regional economic growth. The majority of structures have sound structural
integrity, but as time goes on, they lose value owing to underuse and a failure to maintain them. The industrial
building vacancy rates in Belmont continue to climb as a result of the current recession, which is being felt daily
there. This was not in our minds, but they are gradually losing their life as they turn into white elephants.
As the manufacturing companies close down, the buildings depreciate at a fast rate therefore most of the entities
losing the best specialists left Bulawayo for greener pastures for example; the Ndebele people left for South
Africa, the majority of the Shona‘s migrated to United Kingdom which was described as the second capital city
in Zimbabwe.
The stakeholders that are in charge of encouraging local economic development in the city of kings and queens,
such as the local government, citizens, and organizations, are at fault since they failed to capitalize on the
infrastructure and instead allowed it to decay. The fundamental issue is that the community, which includes
leaders, lacks professional, academic, and skill development. The leaders have been talking for the previous ten
years or so, but there hasn't been much effort taken to put their ideas into practice. Although motivation is
beneficial, action must also be taken. Politicians hold the majority of investments; they do not make infrastructure
investments.
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One person may be the owner of the 10-unit building. Although the expenses outweigh the gross income, they
are reliant on the rentals that the properties produce. The business owner is losing money. The manufacturing
industry has suffered a major downturn as a result of failing to attract high-quality customers. Unstable economic
conditions and enacted regulations further cripple the real estate sector by destroying the last shreds of
manufacturing production. Roads with potholes that can result in serious accidents or even accidents because of
rain are examples of poor infrastructure services. Street lights that are distorted will scare away investors.
Other areas have an impact on how an industry, like agriculture, develops. If only they could manage to focus on
raising cattle without destroying the veld. The Belmont industrial site in Bulawayo is suffering because enterprises
that were once thought of as manufacturing entities, such PG Timbers, National Tyre Services, and dairy
companies, are currently struggling to find the funding they need to recapitalize their operations.
5.2 Conclusions
A total of 100 industrial properties were examined and described. The bulk of the industrial properties in the area
are underutilized, according to the study of data gathered from the population, which included key informants,
the general public, and industrialists. This is brought on by a lack of financial access, a lack of skilled labor, a
paucity of raw materials, theft and criminality, the continuous use of outdated technology that is over 20 years
old, a severe lack of foreign currency, and excessive utility and service fees.
5.3 Recommendations
1. Resource Mobilization
Transforming Industrial Development Company of Zimbabwe into a Development finance Institution for
funding industrial development
Policies
Government in collaboration with the private sector has also come with a draft Zimbabwe
local content Policy.
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The policy is aimed at promoting local addition and linkages through utilisation of
domestic resources
Government has designated areas for Special Economic Zones. The areas include:
ii.Bulawayo
iii.Victoria Falls
SEZ privileges
i.Tax rebates including duty free importation of equipment and raw materials
Companies can apply for duty waivers on importation of machinery, equipment and raw materials
They can also apply to be granted National Project Status which allows for duty exemptions on
importation of machinery and raw materials.
5. Industrial Competitiveness
The National Competiveness (NCC) is receiving training from the government to enable it to carry out its purpose
of identifying and analyzing cost factors that affect the competitiveness of the productive sectors and making
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recommendations for policy actions. A flexible specialization and effective planning and designing of industrial
districts and industrial parks in response to technological advancement should also be permitted by the ministry
of industry and commerce and the local government. In order to encourage flexible specialization of businesses
and industrial parks, as seen in Malaysia and other industrialized nations, the private sector and the government
should cooperate.
The industrial enterprises should permit their personnel to be able to go and learn and obtain academic degrees in
terms of knowledge and education. The Permanent Secretary of the Ministry of Higher and Tertiary Education
made the following points in a speech at a science exhibition that took place in Harare on May 31, 2019:
"Educational institutions should not train the world you lived in train the world," he said, "which is by promoting
innovation and research through various such as development of industrial parks and increase human capacity
development."
The industrial properties in Bulawayo there are underutilised affecting the property sector negatively. The major
causes of underutilisation of industrial properties is the fact that industries are not performing below full capacity
due to lack of access to finance to recapitalize, shortage of skilled labour, outdated technology, machinery and
equipment and shortage of raw materials hence they now occupy a smaller area of their property resulting in the
underutilisation of the industrial properties.
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REFERENCES
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23. Figure 8. Planning Tank. Hoyt Model or Sector Model (1939) of Urban Land Use by Homer Hoyt.
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26. From an Industrial Powerhouse to a Nation of Vendors: Over Two Decades of Economic Decline and
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40. Madonko, V. 2016. Bulawayo: a faded industrial giant. Urban Africa. Net. Bulawayo
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41. Mangwendeza, S. 2018. Portfolio Manager‘s Digest First Quarter 2018. Old Mutual Securities.
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Appendix A
QUESTIONNAIRE
My name is TATENDA GIRANDI (N0182351X), a student from National University of Science and Technology
in Zimbabwe. In the Faculty of Built Environment in the Department Landscape Architecture and Urban Design.
I am doing a Bachelor of Science Honours in Property Development and Estate Management. I am carrying out
a research on the implications of underutilisation of industrial properties being a case study of Bulawayo
(Belmont) for educational purposes. Feel free to answer my questions as this interview is private and confidential.
Please, kindly indicate your choice of answer by ticking in the box of your choice.
SECTION A
Female - Male
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SECTION B
Yes No
Yes No
………………………………………………..
12. Did the firm introduce any new machinery and equipment?
YES NO
13. How many employees are skilled enough to use the new machinery and equipment?
…………………………………………………….
14. Does the firm conduct training programs for employee development?
YES NO
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3
17. Have you introduced any new products into the market?
Yes No
1.
2.
3.
4..
1.
2.
3.
4.
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5.
YES NO
YES NO
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Appendix B
My name is TATENDA GIRANDI, a student from National University of Science and Technology in Zimbabwe.
I am doing a bachelor honours in Property Development and Estate Management, the faculty of Built Environment
in the department Land Architecture and Urban Design. I am carrying out a study on the implications of
underutilisation of industrial properties, case study of Bulawayo (Belmont) for educational purposes. Feel free to
answer my questions as this interview is private and confidential.
4) What percentage of operations would you give for industrial properties in Belmont and why?
5) What production machinery and equipment utilisation capacity would you range Belmont industrial
properties.
8) How many employees possess the critical skills that keep the production running?
10) When was the last time a produced a new product by each of these industrial firms?
11) Do these firms produce for Export or its for Local consumption only?
14) When was the last time there was an organisational change?
15) What would you suggest to be done so as to improve production operations and utilisation?
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16) What is the most critical challenge being faced?
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Appendix C
OBSERVATIONS CHECKLIST
…………………………………………………..
ii. % of operation
…………………………………………………..
………………………………………………….
…………………………………………………….
…………………………………………………..
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vi. Employee productive capacity
………………………………………………………
………………………………………………….
………………………………………………….
…………………………………………………….
………………………………………………………………………..
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