Tendai Kamhungira 
AGRICULTURE minister, Anxious Masuka says the new land bank, which is expected to provide cheaper financing to farmers will open its doors by the first quarter next year, in time for the winter farming season.
Responding to questions from legislators in Parliament last week about agriculture finance and the country’s land tenure system Masuka, said the government had come up with a plan to try and solve the problems associated with agricultural financing while negotiations with bankers were ongoing.
“The negotiations between the government and the Bankers Association regarding the bankability of 99-year leases has been going on for the past 10 years and still they are not bankable. Whilst those discussions are going on the government has resolved to remodel and transform Agribank into a land bank and this will be happening in the next five months ahead of winter wheat production so that by March 31, Agribank will now be an institution that does not consider a tenure document for one to access a loan but will consider the business plan,” he said.
The bank is expected to provide investment support for A1, A2 and small-scale commercial farmers who have not been supported by commercial banks.
“However, we are equally disappointed as the government that the negotiations with the bankers have taken this long. So, we have taken the view that while those negotiations are proceeding, we will open this window which we think will be able to provide all Zimbabweans with an opportunity to access a bank,” he said.
“May I also add that the negotiations relating to the 99-year leases are only for 18 000 Zimbabweans and yet we have more than two million farmers. This Bank that we are creating will be able to take two million farmers rather than the 18 000 A2 offer letters”.
The government approved the remodelling of Agribank in the view that, agriculture among other sectors is crucial in realising Vision 2030 owing to its contribution to the economy and to national security.
The country requires over US$1,2 billion to effectively fund the agriculture sector per year.
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