The Westgate Shopping Mall located in the heart of Harare Zimbabwe

The Westgate Shopping Mall, located in the heart of Harare, Zimbabwe, has been a significant retail hub since its inception. As one of the largest and most modern shopping centers in the country, it has played a vital role in the urban economic landscape. 

Shopping malls are often seen as catalysts for local economic development due to their potential to create jobs, attract investments, and stimulate consumer spending. 

This article seeks to explore the economic impact of the Westgate Mall on Zimbabwe's local economy by reviewing existing literature, analyzing available data, and discussing the broader implications of the mall's operation.

To assess the economic impact of the Westgate Mall on the local economy, a mixed-methods approach was deployed. Primary data was obtained through interviews with store owners, mall management, and consumers. Secondary data was sourced from published reports, trade statistics, and economic surveys concerning retail industry performance in Zimbabwe. 

The qualitative data from interviews helped to understand the sentiments and perceptions of various stakeholders, while quantitative data provided an empirical basis for evaluating the mall’s economic contributions. Utilizing a blend of these methods allowed for a comprehensive assessment of Westgate Mall's economic footprint.

Results

The research findings indicate that Westgate Mall has had a multifaceted economic impact on the local economy. The most significant contributions are outlined as follows: 

• Employment Creation: 

The mall has directly and indirectly generated employment opportunities for locals. Numerous jobs have been created within the mall in retailers, food outlets, entertainment businesses, and the mall’s administration and maintenance sectors.

• Consumer Spending: 

As a retail hub, Westgate Mall has attracted considerable consumer spending. The wide array of products and services offered has drawn in local shoppers and tourists alike, with spending positively affecting local businesses and, by extension, the local economy.

• Tax Revenue: 

With the increased business activity, there is a consequent rise in tax revenue for local and national governments. This revenue is essential for funding public services and infrastructure developments.

• Local Supply Chains: 

The stores within the mall source a variety of goods from local suppliers, fostering economic linkages and benefitting local producers and service providers. 

• Real Estate Value: 

The establishment of the mall has led to an increase in the value of adjoining properties and encouraged further real estate developments in the area.

• Inward Investment: 

Westgate Mall has served to attract foreign direct investment by demonstrating the viability of large-scale commercial ventures in Zimbabwe. This investment can have trickle-down effects on local businesses and the economy at large.

The quantitative analysis also revealed an upward trend in the average monthly turnover for retail businesses operating within the mall, contributing significantly to the local Gross Domestic Product (GDP). Furthermore, business linkages between the mall and local suppliers have enabled the diffusion of technology and knowledge-sharing.

Westgate Mall's presence in Harare has provided substantial benefits to Zimbabwe's economy, particularly within the local context. The creation of employment has been crucial in an economy facing high unemployment rates. By offering both skilled and unskilled jobs, the mall has helped mitigate the employment challenge and provided a platform for human capital development. 

The increase in consumer spending within the mall suggests a positive impact on retail businesses, arguably leading to economic growth within the sector. Furthermore, the addition of new and diverse services has enhanced the consumer experience, leading to an increase in foot traffic and thereby augmenting overall spending patterns.

Tax revenue generated from businesses within the mall has significant implications for national and local fiscal health. An increase in tax revenue contributes to a more robust public sector, capable of improving infrastructure and services vital for further economic development. Moreover, the mall's ability to draw in tourists assists in diversifying the sources of tax revenue beyond local consumers.

Local supply chain benefits underscore the importance of the mall as a nexus for commercial activity. By procuring goods and services locally, Westgate Mall nurtures the growth of small and medium enterprises (SMEs), which are often considered the backbone of developing economies. This symbiotic relationship between the mall and local suppliers enhances economic resilience and self-sufficiency.

The rise in real estate values surrounding the mall area can be attributed to the mall’s ability to transform its vicinity into a prime location, thus enriching property owners and incentivizing property development. Such developments can have ripple effects, improving the local infrastructure and quality of living standards. 

In terms of foreign investment, the success of Westgate Mall serves as a showcase for the potential profitability of commercial investments in Zimbabwe. This can play a critical role in altering perceptions amongst foreign investors concerning the viability and attractiveness of Zimbabwe’s investment landscape.

Nevertheless, the study found that Westgate Mall also presents challenges. There are concerns that the presence of international retail chains within the mall could eclipse local businesses, thereby limiting their growth potential. Further, while the mall attracts consumers, it may inadvertently divert spending away from traditional markets and other retail areas, potentially impacting their economic sustainability.

Westgate Mall has made a considerable economic contribution to Zimbabwe's local economy by generating employment, stimulating consumer spending, increasing tax revenue, fostering local supply chain development, enhancing real estate values, and attracting foreign investment. However, it is necessary to consider the broader implications of such developments to ensure balanced and inclusive economic growth.

The economic impact of Westgate Mall on Zimbabwe’s local economy is multifaceted and significant. It has stimulated job creation, attracted consumer spending, and contributed to tax revenues. The research findings insist on a strategic approach to harness the full potential of such developments while managing any negative externalities.  

Policymakers and business leaders must work collaboratively to maximize the benefits of retail hubs like Westgate Mall while ensuring that the growth is sustainable and inclusive, supporting local enterprises and communities alike.