Govt to guarantee 99-year leases

Govt to guarantee 99-year leases
Published: 22 August 2019 (119 Views)
GOVERNMENT is looking at offering full and partial guarantee to banks for the acceptance of the 99-year lease when farmers access funding this season, as negotiations with the financial institutions to perfect the document continue, Finance and Economic Development Minister Mthuli Ncube has revealed.

This came out at the 7th Annual National Agribusiness Conference which was held at the Zimbabwe Agricultural Show yesterday.

The conference was organised by the National Economic Consultative Forum in conjunction with the Zimbabwe Agriculture Society to enhance agriculture production and productivity and also come up with sustainable solutions to challenges being faced by the industry.

Senior Government officials including Lands, Agriculture, Water, Climate and Rural Resettlement Minister, Perrance Shiri, Legal and Parliamentary Affairs Minister Ziyambi Ziyambi and Minister of State for Harare, Senator Oliver Chidawu, NECF officials, ZAS officials, farmers unions and other stakeholders in the agriculture industry also attended the conference.

Minister Ncube's announcements came after Minister Shiri had raised concern that financial institutions were backtracking on the issue of the bankability of the 99-year lease. He expressed concern that during negotiations, the financial sector agree to accept the 99-year lease but when farmers approach the banks, they do not access funding using the documents.

Minister Shiri urged the financial institutions to honour their agreements.

He said Government will also continue negotiating with the financial sector to ensure all the outstanding areas are ironed out and farmers can access funding using the document.

"I call upon financial institutions to honour our negotiations and also to commend the splendid work they are doing in agriculture and the economy at large.  "Each time we come to an agreement that 99-year leases are bankable but when farmers approach banks for loans nothing materialises.

"When I joined the Ministry I was made to understand that banks were accepting the 99-year lease but on the ground nothing is happening. There is need for dialogue. Agriculture is the backbone of the economy and we should come to some agreements as soon as yesterday so that farmers can start benefiting from the agriculture sector," he said.

He said under the Transitional Stabilisation Programme, Government envisages greater involvement of the domestic financial system underpinning the financing of agriculture. "One key aspect of farming successfully is the availability and affordability of agricultural finance. Government remains committed to ensuring that the sector remains sufficiently funded.

"Government is revising the 99 year lease agreement with the view to improving its bankability. This will complement Government's ongoing interventions through the Special Agriculture Production initiative commonly known as Command Agriculture Scheme and the Presidential Inputs Scheme," he said.

Minister Ncube said negotiations should continue for the 99 year lease to be accepted by banks.

"While we are still negotiating with banks, on financing and making the 99-year leases bankable, and of course which is a credit issue for the banks, in terms of financing the programme this year, we are looking at basically providing full or partial guarantees to the banks for on lending to the farming sector to ameliorate the issues around these 99 year leases.

"We are also working on perfecting the 99-year leases and finalise discussions of the financing. We expect the banks to work with us to make sure that the farmers do pay back and reduce the default rates in the farming sector.

"This week we are having a meeting with banks in order to finalise the financing of agriculture because this is a sustainable move for the future as there is a limit to which Government can continue financing agriculture. The private sector has to step in and work with Government," he said.

Minister Ncube said Government funding alone was not sustainable and urged the private sector to chip and assist.

"The private sector should also get in and work with Government in the financing of the agriculture sector through Public Private Partnerships.

"In Ethiopia the agriculture commodity exchange has worked well in funding the agriculture sector," he said.

Minister Ncube also urged the manufacturing sector to get involved in production and contract farmers to produce their raw materials for instance in soyabeans and cotton.

- chronicle

Tags: Govt, Leases, Guarantee,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe govt expenditure problem

by Clemen Moyo ka Mangena | 15 September 2019 | 101 Views

Sympathy for the devil

by Zimbabwe Vigil Diary | 15 September 2019 | 118 Views

ZINARA Employees stealing from government and motorists

by Munya Shumba | 15 September 2019 | 126 Views

ZAPU in its bravest rebranding and transformation exercise

by Sakhile Sibanda | 15 September 2019 | 102 Views

Mugabe's death breathes life into sleepy Zvimba

by Staff reporter | 15 September 2019 | 169 Views

Zimbabwe's success inevitable, says Mnangagwa

by Staff reporter | 15 September 2019 | 218 Views

Mugabe died a sad man

by newzimbabwe | 15 September 2019 | 256 Views

Zinara looters put on notice

by Staff reporter | 15 September 2019 | 247 Views

Ramaphosa apologises for xenophobia

by Staff reporter | 15 September 2019 | 173 Views

Mugabe funeral programme shifts to Zvimba

by Staff reporter | 15 September 2019 | 280 Views

Zimbabwe nears SA industry loans deal

by Staff reporter | 15 September 2019 | 169 Views

Crafty Bob is not just history but our history

by Bishop Lazi | 15 September 2019 | 140 Views

G40's ahistorical narrative

by Ranga Mataire | 15 September 2019 | 165 Views

A too-comfortable end for Mugabe

by Jason L Riley | 15 September 2019 | 184 Views

Mnangagwa may not revenge against Grace Mugabe

by newzimbabwe | 15 September 2019 | 169 Views

Final salute for Robert Mugabe

by Staff reporter | 15 September 2019 | 134 Views

'The West is upset about Zimbabwean land'

by Prof Arthur Mutambara | 15 September 2019 | 166 Views

South Africans need a history lesson

by Mtandazo Dube | 15 September 2019 | 149 Views

'Foreigners can now invest in Zimbabwe's restricted sectors'

by Staff reporter | 15 September 2019 | 172 Views

Grace Mugabe praised

by Staff reporter | 15 September 2019 | 178 Views

Zesa, BCC agree on compensation for power station use

by Staff reporter | 15 September 2019 | 137 Views

The 'Zimbabwean' mogul in SA police's crosshairs

by Staff reporter | 15 September 2019 | 178 Views

Can Bosso stand Colliery heat?

by Staff reporter | 15 September 2019 | 88 Views

ZB Bank introduces WhatsApp banking

by Staff reporter | 15 September 2019 | 85 Views

Sables beat Zambia, win Victoria Cup

by Staff reporter | 15 September 2019 | 68 Views

College charges extra on EcoCash

by Staff reporter | 15 September 2019 | 45 Views

Concern over sharp increase in armed robbery cases

by Staff reportetr | 15 September 2019 | 47 Views

'18 people living in one room'

by Staff reporter | 15 September 2019 | 76 Views

Zimbabwe stuck with expired medical drugs, says committee

by Staff reporter | 15 September 2019 | 50 Views

Mugabe: The socio-genesis, posterity of Pan-Africanism

by Richard Runyararo Mahomva | 15 September 2019 | 115 Views

Bulawayo City Council workers demand housing stands

by Staff reporter | 15 September 2019 | 32 Views

The installation of the Lozwi King at Emawabeni

by Pathisa Nyathi | 15 September 2019 | 128 Views

Graca Machel: Appreciate Mugabe's role in Zimbabwe

by Staff reporter | 15 September 2019 | 44 Views

Gukurahundi victims react to Mugabe death

by Staff reporter | 15 September 2019 | 50 Views

The other side of Mugabe

by Nqaba Matshazi | 15 September 2019 | 101 Views