99-year leases guarantee security of tenure: Shiri
At the end of January, Government directed that all remaining white commercial farmers be issued with 99-year leases, a marked policy shift from the previous arrangement where they could only get fiveyear leases. The directive is in line with President Mn
EC: How did Government arrive on a 99-year lease, why not 50 or 100?
PS: A 99-year lease is acknowledged worldwide as a long term secure lease that guarantees the holder a lifetime’s tenure and longer. It seeks to provide the same or similar security as freehold.
EC: On the issues of white farmers, how many white farmers are still on the land?
PS: At the last count at the end of 2015, there were roughly 340 out of an initial number of approximately 4 000 who occupied farms before the Land Reform Programme.
EC: Can you explain what prompted Government to give 99-year leases to white farmers?
PS: All farmers, black, white or any other colour who qualify for a 99-year lease are entitled to security of tenure so that they can plan and invest without fear of disruption. EC: Does this mean Government is returning land to white commercial farmers?
PS: Land reform is irreversible as per the President’s inauguration speech, and all land now belongs to Government.
EC: Which areas of specialty are you looking at for the issuance of the 99-year leases?
PS: All agricultural activities are important and contribute to the economy of our country. Therefore 99-year leases will be issued on all agricultural land pursuing productive agricultural activities.
EC: What will happen to the white former commercial farmers who do not have land, but are still interested in farming?
PS: All citizens, regardless of race, who are interested in farming are free to partner with those who have land by way of Joint Ventures and Partnerships for win-win outcomes. These agreements should be endorsed or approved by the Ministry of
Lands, Agriculture and Rural Resettlement since the land is state land.
EC: How does this new policy of issuing out 99-year leases to white farmers benefit the agricultural sector and the nation as a whole?
PS: Whether issued to black or white farmers, 99-year leases provide greater security of tenure which means that there can be increased investment in agriculture which in turn results in greater productivity. The nation’s economy will improve as well as food security.
EC: Financial institutions have been refusing to accept the 99-year leases as collateral. Has this changed? If yes, what are the changes?
PS: This has changed and financial institutions now accept the 99-year leases as collateral. There were changes made to the lease to give bankers comfort in the event a lessee fails to pay back money lent by banks.
Bankers can now offer the lease for sale in execution so that capable buyers interested in agricultural business can buy the lease and take over the debt.
EC: On a different note, there are some farmers who moved to farms during the fast-track land reform programme and have been farming there for more than 10 years but are still to get offer letters. What is Government doing to ensure that they have ownership of the land?
PS: Investigations are carried out to verify claims of such occupation and where the occupiers are on land suitable for resettlement, they are regularised, that is, the land is properly planned in terms of carrying capacity and offer letters or permits are issued. I, however, hope that you are not referring to illegal settlers, who the law requires that they vacate the illegal settlements, failure of which the law shall take its course.