Farmers pray for land tenure resolution

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FARMERS say land tenure should be finally resolved to unlock private sector funding, as President Emmerson Mnangagwa settles into his second term in office.
This comes as Mnangagwa has set a new agriculture economy target of almost US$14 billion by 2025, having eclipsed the initial US$8,2 billion target ahead of schedule last year, according to official figures.
Zimbabwe Farmers Union (ZFU) secretary-general Paul Zakariya told The Financial Gazette this week that as Zimbabwe moves forward after the elections, agriculture producers have their sights set on increased growth in both livestock and crop production and productivity.
“We are hopeful that this period will address the issues of the bankability of 99-year leases that have dragged for more than a decade. The finalisation of this issue will enhance easier access to finance for farmland holders.

“In the same vein, the cost of money must be addressed in relation to agriculture in the light of grower viability,” Zakariya said.
“We expect that more financial windows will be opened for farmers of all categories in order to grow the sector to expected levels.
“The crowding in of the private sector in agricultural financing will go a long way in enhancing a solid base for agricultural value chains development. This will ensure that commodities are produced by local finances and value addition will then be possible.
“The country should not export raw materials,” Zakariya added as he stressed that climate change issues would also need to be tackled from a strong policy perspective.
“Climate proofing that includes water harvesting and drip irrigation for all producers will go a long way to ensure sustainable food production and security,” Zakariya said.
Zimbabwe National Chamber of Commerce chief executive Chris Mugaga said the participation of the private sector in agriculture could not be overemphasised.
“We need private sector participation in agriculture more than ever before. For years, one of the major sources of instability in this economy has been funding into agriculture.
“So if the private sector is to participate what it simply means is that government’s fiscus will be spared the commitment firstly to push for subsidies in agriculture and even from money printing to support a lot of projects in agriculture,” Mugaga said.
He added that various interventions by the government over time had demonstrated that direct intervention in agriculture funding does not necessarily result in increased productivity.
Mugaga cited the Farm Mechanisation Programme undertaken between 2007 and 2008, which he said did not have the desired impact on production.

“The solution should remain the private sector. In the tobacco sector, under contract-based farming, tobacco has performed very well because the owners of private capital expect returns and this pushes the agriculture sector to deliver.
“It’s high time we start appreciating that farming is a business so the private sector should be the main player in agriculture,” he said.
“But the biggest player within the private sector should be the banks. Banks who are willing to listen and offer loans to farmers.
“At the same time, the banks need to be convinced that the 99-year lease is secure because at the moment the ownership structure of our land is not attractive to private financiers.
“The 99-year is not transferable and cannot be collaterised. The ownership model needs to become friendly. As long as we have the current ownership model, private sector participation will remain depressed.”
The government on its part has stated that it is coming up with a bankable 99-year lease document but has previously failed to meet self-imposed deadlines.
Zimbabwe’s recent growth in agriculture has been notable, with the president saying the country is on course to putting 350 000 hectares under irrigation by 2025, as this is a key enabler of the sector’s new growth target. Under the Accelerated Irrigation Development and Rehabilitation Programme, the sector has to date seen 204 000 hectares going under irrigation, from 173 000 hectares in 2020.
The country is now wheat self-sufficient, and over the past three seasons, has produced above its annual cereal requirement of 2,2 million metric tonnes while this season saw tobacco recording its biggest figures ever with the latest figures showing 296 million kg of the crop being traded.
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