Zimbabwean President Emmerson Mnangagwa has introduced a new policy that permits beneficiaries of land acquired from white individuals during controversial land reforms to sell the land and utilize it as collateral for bank loans. This policy represents a significant shift in Zimbabwe's land regulations, as previously, resettled farmers were unable to transfer ownership of the land.
Under the new policy, land ownership can only be transferred among 'Indigenous Zimbabweans,' referring to Black Zimbabweans, and necessitates government approval. This move comes after tens of thousands of Black individuals took over white-owned farms following land reforms initiated by former President Robert Mugabe in 2000, aimed at rectifying colonial injustices that concentrated fertile land in the hands of a few white individuals.
Previously, the new Black farmers were prohibited from selling or transferring land ownership, as it was considered state property. Consequently, banks were hesitant to provide loans to these farmers who couldn't leverage their land as collateral. In a recent development, a select group of farmers, including Mnangagwa, were granted title deeds to the farms they occupy.
Mnangagwa also revealed the formation of a technical committee to oversee the process for other resettled Black farmers. The President emphasized that this policy change would unlock the land's value, making it 'bankable and transferable.'
The land seizures two decades ago, which saw around 4,500 white farmers losing prime farmland, were marred by violence and human rights abuses. The disruptions to commercial farming led Zimbabwe to rely on external aid, impacting its status as a regional food producer and exporter. While the agriculture sector has shown signs of recovery, challenges like droughts persist.
Mnangagwa believes that by issuing title deeds to Black farmers, the issue of securing finance can be addressed. Secure land tenure enables farmers to access credit facilities, ultimately lifting many out of poverty and fostering prosperity. In a related development, Finance Minister Mthuli Ncube announced plans for compensating both local and foreign white farmers affected by the land seizures.
