Published: 03 April 2014

Farmers who struggle for funds each year, have to wait for a indefinite period before they know whether they will ever be able to use their land titles for purposes of obtaining loans from local banks.

Agriculture, which requires about $2 billion annually, accounts for about 16 percent of the country's gross domestic product.

Productivity and recovery of agriculture from the ravages of a decade-long economic instability, continues to suffer from shortage of funding in an illiquid economy.

However, giving oral evidence to a Parliamentary Portfolio Committee on Youth, Indigenisation and Economic Empowerment, Bankers Association of Zimbabwe president Mr George Guvamatanga said banks want a special purpose vehicle that would repay loans in the event that farmers defaulted on loans than for banks to sell their land.

He said this was critical to ensure that they avoid reversal of the land reform programme that saw thousands of once marginalised indigenous people accessing productive land.

Mr Guvamatanga said such a facility would have checks and balances to ensure that farmers do not wantonly abuse it in the knowledge someone would pay off their liabilities.
- The Herald

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