adminAgriculture Reporter
Farmers have called on Government to finalise improvements on 99-year land leases so that they can be accepted as collateral. Farmers have been having difficulties accessing loans from banks because the current leases are considered unsecured.
Zimbabwe Farmers Union director Mr Paul Zakariya said, “Lack of funding has been affecting most farmers as they cannot raise capital on their own. Land should be securitised so that farmers can borrow against it.”
Marondera farmer Mr Phineas Makura said it was unfortunate that Government was taking long to securitise land.
“Can you imagine some farmers are still to get the leases? A lease is a confirmation that I own the land and I can make permanent improvements on the farm,” he said.
Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa said although the idea of securitising land was noble, farmers could end up losing their land offers after failing to repay loans.
“Before the land reform, former commercial farmers had title deeds which they used as collateral and could access loans,” he said. “Now the land belongs to the State and what will happen if a farmer uses title deeds to borrow money and fails to pay back?
“This issue should be approached carefully as farmers may end up losing land to financiers, defeating the whole purpose of the land reform to empower indigenous people.”
Mr Chabikwa said Government could subsidise inputs to reduce production costs, and that livestock and other properties should be used as collateral.
Lands and Rural Resettlement Minister Dr Douglas Mombeshora recently said Government was working on new land tenure documents for farmers resettled under the A1 and A2 models. Dr Mombeshora said Government had come up with a permit for the A1 model and was in the process of coming up with a bankable 99-year lease.
Online Reporter