9-year leases remain unbankable unless !
‘99-year leases must be bankable’
Local banks say land security is ‘ideal’
for farm financing as
the 99 year leases have become a
bone of contention between government
and the financial
institutions, Business Times can report.
The Bankers Association of Zimbabwe (BAZ) CEO, Fanwell
Mutogo told Business Times that
there has to be a way to make the 99
year leases bankable.“The government has to
review our concerns and see
how best they can be addressed
whether in full or in part but
there has to be a solution,”
Mutogo said.He added: “They want to
come up with an allinclusive p o l i c y
around 9 9 year leases therefore they have to listen
to stakeholders and address their concerns.”
He said the authorities may need
time to come up with solutions.
However, the Lands, Agriculture,
Fisheries, Water and Rural
Development minister Anxious
Masuka was optimistic that 99-year
leases will be ready next year.
“Land is an economic enabler. I
urge all A1 and A2 farmers to use this
productively and to complete the
Annual Production and Productivity
“The Annual Production and
Productivity Return Forms are now
the basis for the issuance of 99-year
leases. We are targeting to issue them
out early next year,” he said.
But, the lenders are worried about
invasions across the country, a
strong indication that the land
can be taken away from existing
farmers who are potential
Banks remain adamant that
as long as the government does
not bring finality to the land
reform programme, they will not
accept the 99-year lease as collateral.