‘Solve 99 year leases issue’

GOVERNMENT has been urged to quickly resolve the issue surrounding the 99-year leases to make them bankable so that resettled tobacco farmers can easily access funding from banks.

Resettled farmers are unable to fully utilise their land owing to a cocktail of challenges, including a lack of critical resources such as seed, fertilisers and funding.

Even though government issued 99-year leases, farmers can’t use them as collateral as banks say they are unbankable.

Seasoned market watchers Tetrad Securities said solving the issue of leases will go a long way in helping small farmers, especially in tobacco farming, to access funding to buy seeds and fertilisers on time.

“For starters, there is need for the government to assist farmers, especially small-scale farmers who now command the largest percentage, in accessing funding.

“Funding is necessary so that farmers prepare in time and purchase the required chemicals required during the whole process.

“The reason why this is now critical is that there isn’t much scope or benefits to be realised from increasing hectarage but rather enhancing the quality of the leaf (tobacco).

“Thus there is need for funding to be provided so that more resources will be channelled within the land under hectarage.

“This also means that the issue of 99 year leases needs to be solved so that farmers access funding from banking institutions,” Tetrad said.

Zimbabwe’s yields have been drastically falling due to a range of factors.

Currently, about 2 million people require food aid.

Tetrad added that for the country to remain a dominant force in the global tobacco industry its ability lies in improving yields which would require training in the tobacco sector to enhance quality and improve yields which have been low despite the increase in hectarage.