Title deeds poser for entrepreneurs

Prosper Ndlovu Business Editor
ABOUT 95 percent of entrepreneurs in the country’s urban areas are hindered from participating in the mainstream economy due to lack of collateral security to access funding despite owning valuable properties, an official has said.
According to the Zimbabwe Property Owners’ Trust (Zipot), banks turn thousands of indigenous home owners away each time they seek funding for their projects without title deeds for their properties.

“This is affecting the participation of a majority of people in the mainstream economy. Financial institutions send these people away despite having stayed in these houses for years, some of them since the 1950s,” Zipot chief executive officer Paul Mangwana said.

He told Business Chronicle thousands of residents, especially in the high density suburbs, own houses either under council leases or home ownership but do not have titles for their properties.

“The situation is frightening as 95 percent of urban land owners have no title deeds. They can’t use these properties as collateral hence their land is not participating in the national economy,” added Mangwana.

“A majority of black people in major cities like Harare, Bulawayo and Gweru don’t have titles for their properties and it’s worse in small towns and growth points. Ignorance is the greatest culprit. Many people don’t know the importance of title deeds.”

Mangwana said his organisation was rolling out an awareness programme for residents and was engaging local authorities to facilitate title deeds for their residents.

He also said they had sought dialogue with the Ministry of Local Government, Public Works and National Housing to urgently look into the issue and facilitate a financial breakthrough for budding businesses.

Mangwana, a legal expert, urged residents to approach councils and have their properties surveyed before seeking title deeds.

He said those who have challenges can approach lawyers to assist them while efforts were underway to engage financial institutions to also assist their clients obtain title deeds.