Eldorado Park entrepreneur Nokuthula Dube was paying R3500 monthly rent for her business space in the Johannesburg south township – but is now faced with the headache of sharp 30% increase.
Small business owners across townships and local shopping hubs are reeling from sharp rent increases, with many saying they might not survive another rise before the end of the year.
For most entrepreneurs, rent is already their biggest monthly cost. But as landlords hike prices to cover higher maintenance fees and electricity tariffs, many SMMEs are being pushed to the brink.
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“Last year, I was paying R3,500 for my space. Now the landlord wants R5,000,” said Nokuthula Dube, who owns a small hair salon in Eldorado Park. “It might sound small, but that extra R1,500 means I can’t buy new products or pay my assistant on time. Business is slower these days, so every cent counts.”
Informal traders and small businesses have long been the heartbeat of township economies. Many operate from rented containers, stalls, or small complexes, and a sudden rent increase can disrupt their entire operation.
Sibusiso Mthembu, a clothing trader at a local plaza, said they don’t have a choice when it comes to rent.
“We are being forced to make tough decisions. Some of us have moved our businesses back home because we can no longer afford rent. But that also means losing customers and visibility. It’s like starting over.”
The Mamelodi Local Business Forum in the Tshwane township of Mamelodi says it has received numerous complaints from traders in the past two months.
“The issue is not that landlords shouldn’t increase rent, the concern is how sudden and steep these increases are. Small businesses need time to adjust, especially after surviving the (Covid-19) pandemic and ongoing load-shedding,” said forum member Nomusa Zulu.
Zulu said the forum is engaging with property owners to find a middle ground, suggesting gradual rent adjustments and discounts for long-term tenants to prevent mass closures.
Another local entrepreneur, Mpho Phiri, who runs a small takeaway business, said the rent hike has forced her to reduce her staff.
“I had two employees, now I’m working alone. I can’t afford to pay salaries and rent at the same time. It’s painful, but I have no choice,”.
For now, many entrepreneurs say they are doing all they can to survive.
But as Dube puts it: “We love what we do, but passion doesn’t pay rent.”
