Published: 12 April 2026

The Competition and Tariff Commission (CTC) has raised alarm over potentially anti-competitive practices in the leasing of retail space, warning that landlords who unfairly deny businesses access to premises risk prosecution under the law.

In a statement, the regulator said unjustified refusal by property owners to lease commercial space could distort markets, limit competition and ultimately reduce consumer choice.

"Refusal to deal refers to a situation where a dominant firm in the market refuses to supply its products or services to a particular customer or competitor, without any valid economic justification," the Commission said.

The warning comes as Zimbabwe's commercial property sector increasingly shifts towards large-scale, mixed-use developments, making access to prime retail space more critical for businesses seeking to establish or expand operations.

According to the CTC, some landlords are either rejecting prospective tenants—particularly new or smaller entrants—or imposing restrictive lease conditions such as exclusivity clauses and limitations on the type of goods tenants can sell.

While acknowledging that property owners have the right to select tenants, the Commission stressed that such discretion is not absolute.

"That discretion is not absolute, particularly where it is exercised in a manner that distorts competition," the CTC said.

Under Zimbabwe's Competition Act, refusal to deal is classified as an unfair business practice and may attract penalties, including fines or imprisonment.

The Commission warned that such conduct can result in market foreclosure, where competitors are effectively locked out of strategic retail locations. This, in turn, can lead to higher prices, reduced product variety and weakened competition.

It also highlighted broader economic implications, noting that barriers to accessing key retail spaces may discourage new businesses from entering the market, thereby slowing investment and growth.

The CTC has urged businesses to report suspected cases and keep records of restrictive conditions imposed during lease negotiations. It also called on landlords to adopt transparent and non-discriminatory tenant selection processes.

"While refusal to lease is not automatically unlawful in Zimbabwe, it becomes problematic when it is used as a tool to exclude competitors, entrench dominance, or undermine consumer welfare," the Commission added.
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