Source: 99-year-lease bankable document ready | The Herald July 4, 2016
Tinashe Makichi recently in Victoria Falls
The Ministry of Lands and Rural Resettlement has completed the redrafting of the 99-year- lease bankable document and is now ready to be presented to Cabinet. Minister Douglas Mombeshora said Government and bankers had ironed out sticking points that previously made banks reluctant to accept the leases as security. Dr Mombeshora said once the relevant processes are completed, farmers will now be able to use the land titles to obtain loans from banks to finance their activities.
The redrafted document was done in consultation with the Ministries of Finance and Economic Development, Agriculture, Mechanisation and Irrigation Development and the Bankers’ Association of Zimbabwe.
“The 99-year-leases were introduced in 2006 and have been in existence since that time but there were challenges in terms of securitisation of that document. We engaged the Bankers Association of Zimbabwe since 2014 and I am glad to say we finalised those discussions in March this year .
“We have ironed out all the issues that were raised by our financial institutions and we have just finalised redrafting the 99-year-lease incorporating the changes. We can gladly say its now a bankable document,” said Dr Mombeshora.
Pursuant to ensuring that farmers achieve maximum productivity, Cabinet has approved the Land Commission Bill in a bid to weed out multiple farm owners, resolve land disputes and deal with land beneficiaries leasing out farms to those who are not entitled to them.
The land audits will be carried out by the Land Commission which is set up under Section 296 of the Constitution. According to the Constitution, the Commission will carry out periodic audits and ensure accountability, fairness and transparency in the administration of agricultural land controlled by the State.