Online Reporter
Precious Manomano
GOVERNMENT has signed an agreement with six banks that will offer mortgage facilities to help farmers acquire title deeds, unlock better financial opportunities and improve agricultural development, a Cabinet Minister has said.
Speaking at a research symposium on Kutsaga’s 75th Anniversary celebrations in Harare yesterday, Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka said it was a milestone achievement for banks to come on board and assist farmers.
“Farmers can now go in and collateralise their land because the President has taken the unprecedented step to give title deeds to farmers,” he said.
President Mnangagwa recently launched a programme aimed at issuing title deeds to beneficiaries of the Land Reform Programme, granting them full ownership rights.
Dr Masuka said more than 5 000 farmers had already expressed interest in obtaining title deeds, underscoring the demand for secure land ownership.
The participating banks include POSB, CBZ, AFC, FBC, and ZB and they will provide mortgage facilities over a 20-year period.
This financial support is particularly crucial for farmers in the tobacco industry as it enables them to use their land as collateral for additional investments.
Dr Masuka indicated that this facility will unlock additional value for the land, enabling farmers to begin borrowing for longer-term investments to increase tobacco production and productivity.
This year, Zimbabwe is poised for a record tobacco crop, with expectations of producing between 320 to 330 million kilogrammes of the golden leaf.
Dr Masuka attributed this success to continuous investments in research and development.
“We have seen that it is continuous investment in research that yields the desired results,” he said.
Dr Masuka said the development of 70 disease-resistant and high-yielding tobacco varieties has significantly contributed to this growth, enabling Zimbabwe to export tobacco to over 60 countries.
The economic impact of the tobacco sector is substantial, with an estimated value of US$1,75 billion benefiting approximately 135 000 tobacco farmers. This translates to each farmer receiving over US$8 000.
Notably, 85 percent of producers are smallholder farmers, and more than 60 percent are beneficiaries of the Land Reform Programme, which highlights the programme’s success in improving farmers’ livelihoods.
Dr Masuka further emphasised the importance of innovative financing in the tobacco sector, noting that 93 percent of tobacco is produced under contract facilitated by banks that recognise the value of the Tobacco Transformation Plan set out by the Government.
However, he called for a review of this plan to boost value addition and beneficiation, aiming to increase the current rate of 10 percent to 30 percent.
To enhance the agricultural economy, Government is actively supporting research and investment into partial processing and manufacturing of tobacco products.
Dr Masuka also spoke about the exploration of alternative uses for the tobacco plant such as biochemicals and other industrial applications.
Additionally, he advocated for diversification within tobacco farming systems, incorporating alternative cash crops and livestock to ensure household food security and income resilience.
Speaking at the same occasion, Zimbabwe National Farmers Union president Mrs Monica Chinamasa stressed the need for banks to assist farmers in acquiring title deeds and the importance of raising awareness among small-scale farmers.
“This is a good move, but we need to create awareness among small-scale farmers that banks are ready to assist them,” she said.
Mrs Chinamasa also pointed out challenges related to land boundaries, adding that many small-scale farmers must resolve boundary issues to secure their title deeds.
Kutsaga chief executive officer Dr Frank Magama reported a strong rebound in tobacco volumes, projecting a substantial crop size of 280 million kilogrammes as of June 10.
He expressed gratitude for the strategic direction provided by the Tobacco Value Chain Transformation Plan.
Collaboration between the Government and banks, coupled with ongoing investments in research and the diversification of agricultural practices, aims to create a more resilient and prosperous agricultural economy in Zimbabwe.
The initiative not only supports farmers in securing their land but also fosters a sustainable future for the country’s agricultural sector.
