News:Ninety-nine-year farm leases now bankable collateral

<vote /> Lands and Rural Resettlement Minister Dr Douglas Mombeshora has said that ninety-nine-year farm leases are now bankable collateral, and land reform beneficiaries will soon be able to access loans on the strength of those documents. Most farmers have been failing to access loans as they occupy State land which banks cannot repossess in cases of default.

At the Zimbabwe National Chamber of Commerce congress held in Victoria Falls last week, Dr Mombeshora said,

"We have just finalised redrafting the 99-year lease, with changes having been factored into that document. We can gladly say it’s now a bankable document after financial institutions and Government ironed out all outstanding issues. “The major challenge affecting agricultural production right now is lack of funding. So, to encourage commercial banks to fund agriculture, we need to come up with appropriate legal instruments that make it possible. I am going to present the lease to Cabinet after the Cabinet Committee on Legislation has seen it. “We are open to further discussions and suggestions on how we can perfect the document.”

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