PARLIAMENTARIANS recently took Lands and Agriculture Minister Anxious Masuka to task over "grey areas" in the newly introduced comprehensive land tenure document.
During a Question and Answer session recently, Masuka told Members of Parliament (MPs) that anyone holding an A1 or A2 99-year-lease and permit or lease must surrender the documents to the Lands ministry offices, anywhere around the country's districts for ownership verification purposes, upon which the process of issuing title deeds which will go for a period of three years begins.
Masuka revealed that 360 000 smallholder farmers and 23 500 commerical farmers will get title deeds.
However, some legislators felt the new policy by government will not change much as banks will not accept the title deed as collateral for farming or development loans.
Zanu PF Mabvuku-Tafara MP Pedzisai 'Scott' Sakupwanya queried the title deeds bankability.
"Some years ago, 99-year leases were introduced as a measure of security of tenure and also as a measure for farmers to obtain loans from banks. What measures, of course as we see today, farmers who hold 99-year leases are unable to obtain loans from banks for their farming activities.
"What measures, legislative or otherwise, are going to be put in place to ensure that the title deeds as it were, when they come, will guarantee a farmer's security in terms of being able to secure loans with these said title deeds?" Sakupwanya asked.
Masuka told the august House that the 2013 Constitution indicated that the President may issue more secure tenure documents.
At that stage, he said, the tenure documents that existed were a lease, a permit or an offer letter.
"When we had the 99-year lease, the thinking was that this was a more long-term tenure document that would give everyone, including banks, the confidence to land.
"The experience that we have had over the years, of course, is that these tenure documents, the 99-year lease were not readily accepted by banks as collateral.
"It is in this context that the President made the revolutionary step to grant the issuance of title deeds. Title deeds are the ultimate tenure documents and hopefully with consultations from banks, they will be able to take these," Masuka explained.
He said five banks were already operating within the Department of Lands at the one-stop centre, which are ready to give mortgages for farmers to purchase their land and also to give support to enable those farmers to be productive on their farms.
"We hope that other banks will be able to replicate this and we urge all farmers that have received title deeds to use these documents to be able to access much needed financing to ensure that they become more productive on their land."
Masuka urged A2 and A1 farmers that had not completed the title deed forms to enable them to get these more secure tenure documents to immediately do so.
Another MP, James sought further clarification over the title deeds.
"I take it then that these original title deeds are of no use to government but we see in the compensation plan that you are pursuing, you are asking for these title deed holders to relinquish these title deeds?
"Please, can you allow the clarification to be done? I am just asking that in this compensation plan that is rolling out, the title deed holders have been asked to relinquish these title deeds," James said.
Masuka said this was not true.
"Let me clarify the falsehoods that are being peddled. The government has not requested for title deeds because we know they are worthless. We have not requested for those.
"In terms of the Global Compensation Deed which was consummated on the 29th of July in 2020, the government agreed with former farm owners that the compensation for improvements throughout the country were worth US$3.5 billion.
"We never referred to the title deeds and never at any stage requested the former farm owners to return this paper, which we do not consider or value," Masuka said.
MP Gumbo asked the minister to respond to the question of legislative mechanisms that improve the bankability of the said title deeds.
"As much as you say that there are certain banks that have agreed and you are inviting other banks to come to an agreement to lend to our various farmers and title deed holders, the legal status of the said title deeds make it difficult for them to be bankable.
"This is all because the question of ownership is retained in the State. What are the legal mechanisms and the legislative interventions that you are going to present to ensure the bankability of the said title deeds?" Gumbo said.
The minister assured Parliamentarians that the legal aspects had been taken care of in terms of the Constitution and the Zimbabwe Land Commission Act.
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"There is no other legislative procedure that is required to make these title deeds. It is all covered in both the Constitution and the Zimbabwe Land Commission Act and is very legal.
"The banks that have come forward already have indicated that these are bankable and transferable and therefore can be utilised as collateral," Masuka replied.
A farmer who spoke to NewZimbabwe.com over the new secure land tenure document or title deed had this to say: "The is scepticism around land tenure bankability. The concept of land tenure bankability continues to raise skepticism among us farmers due to the inconsistency in its practical implementation.
"While in theory, having tenure should provide a foundation for accessing credit, in reality, most farmers find themselves locked out of the financial system.
"The reluctance of banks to recognise these land documents as credible collateral undermines confidence and limits investment in agriculture. Farmers need assurance that their tenure has real financial value, not just symbolic recognition," the farmer (name witheld) said.
