Govt, banks in talks over title deeds

LIVINGSTONE MARUFU

The Government of Zimbabwe is in discussions with financial institutions about the possibility of accepting  newly  issued title deeds as collateral for loans, Business Times can report.

This move is designed to unlock the financial value of land, providing farmers with greater access to credit while driving increased agricultural productivity.

For years, land in Zimbabwe has been considered a non-bankable asset, with financial institutions consistently rejecting 99-year leases as security for loans.

This has left many farmers unable to secure the funding necessary to expand and modernize their operations. In response, the government has moved to introduce title deeds, which will allow farmers to purchase land and leverage these legal documents as collateral when seeking financial support from banks.

Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, has projected that Zimbabwe could unlock as much as US$15bn from its land assets through this new approach.

This injection of capital is expected to boost economic growth and strengthen the country’s Gross Domestic Product.

Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr. Anxious Masuka emphasized that the introduction of Title Deeds would create certainty for farmers, enabling them to make long-term investments in infrastructure and production. He noted that the government has already engaged four banks to support the program, with expectations that more financial institutions will participate in the future.

 Masuka underscored the importance of agriculture in Zimbabwe’s economy, stating that the sector offers predictable returns, particularly with ongoing efforts to climate-proof agricultural production.

The minister pointed out that banks require collateral security to issue loans, and these new Title Deeds provide a credible financial instrument for that purpose. With land now recognized as a bankable asset, financial institutions are expected to lend money to farmers based on the strength of these newly issued ownership documents.

For decades, land allocated under Zimbabwe’s land reform program has been regarded as dead capital—an asset that held little to no financial value within the formal banking system. The new tenure reform seeks to monetize land, ensuring it carries capital value and can be used as security for investment. This move is expected to significantly change how landowners engage with financial institutions, allowing them to secure funding that can be reinvested into agricultural development.

While financial institutions have expressed interest in the initiative, many lenders remain cautious and have indicated that they are still awaiting official documentation before making final decisions regarding their participation in the program.

The rollout of the Title Deeds program officially began on December 20, 2024, when President Emmerson Mnangagwa launched the initiative. During the launch, 10  A2 farmers were issued with their title deeds, marking the first phase of the distribution process.

By the end of this month, authorities plan to issue an additional 2,500 title deeds, with a broader goal of covering all eligible farmers by June 30, 2026.

The farmers who stand to benefit from the program include those classified under the Model A2 and Model A1 farming categories, as well as Old Resettlement farmers, beneficiaries of the Commercial Settlement Farming Scheme, and Small-Scale Commercial Farmers. However, communal farmers will not be covered under this initiative, as their land tenure remains under the administration of Rural District Councils and Traditional Leaders.

Despite the government’s efforts to streamline land ownership and create a fair distribution system, concerns have been raised about corruption within the Ministry of Lands.

Analysts have highlighted instances where officials have allegedly allocated land in wetlands and grazing areas, depriving villagers of essential agricultural and pastureland.

This has led to growing frustrations among affected communities, who argue that some land allocations have been manipulated to benefit a select few.

The ministry has denied the existence of any parallel structures for land distribution but acknowledged that fraudsters have, in the past, posed as government officials to deceive unsuspecting citizens.

According to a government statement, cases of fraudulent land allocation have been reported to security agencies, including the Zimbabwe Anti-Corruption Commission (ZACC) and the Zimbabwe Republic Police (ZRP). The government has reiterated that it does not tolerate corruption and that any reported cases are investigated thoroughly, with offenders being handed over to the relevant authorities.

To ensure fairness in the distribution of Title Deeds, the government has committed to prioritizing key demographic groups, including War Veterans, Women, Youths, and People with Disabilities. Authorities have assured that every landholder eligible under the program will receive a Title Deed, with representatives from these groups already included in the initial batch of recipients.

As the government prepares to distribute 2,500 additional Title Deeds by March 31, 2025, officials have indicated that War Veterans will continue to play a central role in the process.

They have been instrumental in both the Liberation Struggle and the Land Reform Program, and their participation in this initiative is viewed as a continuation of their long-standing commitment to empowering Zimbabwean citizens.

The certainty provided by Title Deeds is expected to eliminate land speculation, as farmers will now have a direct incentive to engage in productive and sustainable agricultural activities. The government has maintained that it will continue to oversee the process, ensuring that land remains a tool for economic empowerment rather than a commodity for speculation.

While potential challenges may arise, officials insist that the program’s long-term benefits will far outweigh any obstacles.

The ministry has emphasised that the initiative represents a landmark shift in Zimbabwe’s land tenure system, providing legal security to farmers, unlocking capital, and positioning agriculture as a cornerstone of the country’s economic development.

With the Title Deeds program now in motion, Zimbabwe is on the path to revitalising its agricultural sector, strengthening property rights, and fostering a more inclusive and financially viable land ownership system.

The success of this initiative will depend on the full cooperation of the banking sector, the transparent implementation of land allocations, and the government’s commitment to tackling corruption and ensuring equitable access to land.

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