Farmers can now use the viability of their projects as collateral to access funding from the Land and Development Bank of Zimbabwe (Land Bank), Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka has said.

He said this at his Ngungunyana offices in Harare on Monday during the appointment of additional board members to the Pig Industry Board and the Grain Marketing Board.

He also announced board members for the Agricultural Finance Corporation.

The appointments are with effect from November 18.

Addressing the board members yesterday, Minister Masuka said for a long time, financial institutions were requesting for collateral.

Some institutions were refusing to take the 99-year lease as collateral while other banks demanded immovable property.

“While we resolve the bankability of 99-year leases and other tenure issues, the AFC will use project viability as collateral and not a 99-year leases.

“All a farmer needs to have is a tenure document either an A1 permit or the new securitised A2 permit or that they are a communal farmer if they have a viable project. That is the collateral and AFC will lend on that basis,” he said.

He said the AFC had been restructured to ensure the 21 000 A2 farmers and 360 000 A1 farmers can access loans at a viable cost.

Government expects the 2,3 million rural and urban households to move from subsistence farming to surplus oriented farming for them to become economic participants and not spectators.

“If they are participants, it means they are into the mainstream economy and therefore Vision 2030 to them becomes a reality,” he said.

He said 360 000 A1 farmers who are farming as surplus oriented farmers should be transformed into micro family owned and family oriented agricultural businesses with perennial surpluses so that every year, they are able to sell something and improve their lives and livelihoods for the attainment of Vision 2030.

“The 21 000 A2 farmers have no option and should be transformed to serious women and businesswomen in the next two to three years and that is the role of the Land Bank to be able to provide financing required to transform these three categories of farmers,” he said.

Minister Masuka said President Mnangagwa had approved appointment of additional board members for GMB and the PIB.

Dr Spiwe Majuru was appointed to the PIB board while Ms Antoneller Sofalino was appointed to the GMB board to balance the gender aspect and ensure 50-50 representation on the boards.

The AFC Land Bank board consists of Ms Felistas Ndawi, Dr Richard Dafana, Mr Undiswi Nyikadzino, Dr Chipo Ndudzo, Mr Justin Mupamhanga, Mr Stoney Makuyana, Mr Knowledge Chikondo, Mr Gilbert Dzvuke and Mr Stancilae Tapererwa.

Acting Permanent Secretary, Dr Josphat Nyika, urged the appointed board members to provide strategic direction to the institutions they were appointed.

“Your decisions will affect your employees, customers, suppliers and the shareholder (Government). Board members should have oversight, should be committed and must have care, loyalty and obedience,” he said.