Zimbabwe law offers farmers 99-year leases with access to loans

Zimbabwe law offers farmers 99-year leases with access to loans
Douglas Mombeshora-703345

Lands and Rural Resettlement Minister Douglas Mombeshora

By Godfrey Marawanyika and Brian Latham

ZIMBABWE’S cabinet approved a proposed law to offer farmers 99-year leases and allow them to borrow from banks to purchase vital agricultural inputs, Lands and Rural Resettlement Minister Douglas Mombeshora said.

The measure has been backed by the Bankers’ Association of Zimbabwe and shown to the World Bank, Mombeshora told reporters on Friday in Bulawayo. 

Bankers reached a formal agreement with the government “over the bank-ability” of the 99-year leases, bankers’ association chief executive officer Sij Biyam said Friday by phone. The leases would apply to medium- and large-scale farmers who haven’t been able to secure loans to purchase inputs like seed and fertilizer, limiting their ability to produce.
The World Bank and International Monetary Fund previously urged Zimbabwe to resolve its land-tenure issues after President Robert Mugabe’s ruling party supported the often violent seizure of most white-owned farms in 2000. Parliament must still approve the proposal before it becomes law.  –Bloomberg

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  • munhu

    Please provide details on what will happen should the farmer fail to repay the loan

  • jmoyo@yahoo.com

    The land tenure system is a political weapon to keep farmers tethered to the ruling elite giving that same elite the power to force them off the land. It is a deliberate tool to stifle all freedoms. Otherwise it is a useless medieval tool which was in France in 1789 and formented a revolution!! It has NO place in a modern economy and creates serious disincentives to improve land use and promotes degradation and sterility. It is a criminal act and used for nefarious agendas!

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