ister Murerwa
Elita Chikwati Agriculture Reporter
Government has registered with the Deeds Registry 131 lease
agreements as it moves to ensure that the 99-year leases given to farmers can be bankable.
This comes at a time the amendment of the 99-year leases awaits Cabinet approval, giving hope to farmers who want to use them as collateral and ensure the bankers are able to recover their money.
In an interview last week, Lands and Resettlement Minister Herbert Murerwa said the amended 99-year leases had been tabled before the Cabinet committee legislation for approval.
So far, 1 734 farmers have applied for leases and 1 428 have been recommended and approved for issuance of the 99 Year Lease documents, he said.
Minister Murerwa said Government amended the 99-year lease to make it bankable once Cabinet approved it.
Minister Murerwa said the 99-year lease was amended in response to observations made by stakeholders during consultative meetings, which the ministry held with the Bankers Association of Zimbabwe and farmers unions.
Accordingly, sections and clauses of the lease dealing with purchase by the lessee (A2 farmer) of improvements such as farm house, tobacco barns, workshops and irrigation infrastructure which are located within the subdivision and their transferability to the beneficiary upon payment of the purchase price are an outstanding feature of the lease, providing some value to the document, he said.
Sections and clauses dealing with the repossession of the lease-hold or its cancellation by the Government were also spruced up to limit to the most essential reasons for repossession and cancellation.
Minister Murerwa said concerns had been raised that Government had prescribed too many conditions, some trivial, for repossession of leasehold.
A section dealing with collateral has now been included in the lease specifying the rights of the lender where the lessee borrows from the lender,, he said.
He said the aim was for the lease to be used as collateral and also ensure the bankers are able to recover their money.
The rights of lender and obligations are specified in this section.
It provides 99 years of guaranteed land use provided the farmer complies with the terms and conditions of the lease.
The lease has affixed onto it a title survey diagram showing the extent of the leasehold thus removing the possibility of boundary conflicts, he said.
He however said land remained state property and no one could sell the land or hold it for speculative purposes.
Before A2 farmers are considered for a lease, they should hold a valid offer letter for the land and must have been on the farm for at least three years.
The beneficiaries should also be productive, have built a standard homestead (if the farm had no housing when allocated) and other essential infrastructure such as cattle handling facilities, workshops and sheds.
The farmers should also practice sustainable use of land, have farm records indicating production levels and the farms should be dispute free.
Minister Murerwa said the beneficiaries should be resident on the farm or employ a farm manager.
There have been some challenges faced by farmers and the responsible ministry in issuing leases.