Zimpapers Logo

Lloyd Gumbo Herald Reporter
Beneficiaries of the land reform programme must run their operations as commercial enterprises instead of relying on the State for free inputs, a banker has said. Agribank chief executive officer Mr Sam Malaba made the remarks yesterday before the Parliamentary Portfolio Committee on Lands, Agriculture Mechanisation and Irrigation, chaired by Mbire MP, Cde David Butau (Zanu-PF).

“Farming is a business and therefore people should pay. If they do so then they will be productive. That is what policy should be. For it to succeed, it is incumbent upon Government to make sure that Agribank is adequately capitalised so that it meets the requirements of farmers on a commercial basis.

“I think the issue of free things would not encourage you to be productive but if you are given a loan, then you know you have to repay so you will be productive. The issue of just giving people free things means someone is not motivated to produce,” he said.

He said the Bankers Association of Zimbabwe was still negotiating with Government on making 99-year leases bankable.
Mr Malaba said it was unviable for banks to accept the leases when ownership could not be transferred.

Government insists that no title deeds will be given to land reform beneficiaries since land belongs to the State.
Mr Malaba said the State must go ahead with plans to privatise Agribank as a way of capacitating it. Privatisation of the bank would see a 49 percent stake taken by a strategic partner while Government retains 51 percent in line with the country’s indigenisation and economic empowerment drive.

Mr Malaba said the US$4 million given to the bank in the 2014 national budget was inadequate and institution wanted US$50 million.
Legislators raised concern with the bank’s loan facility, which they said was not doing enough to fund agriculture.

Mr Malaba said the bank had problems with farmers who borrowed money but did not service the loans.