Agribank is offering farmers loans on the basis of collateral and 99-year leases. The bank has set aside a minimum of $105 million for the 2018/2019 cropping season and becomes the first bank to offer loans to farmers with 99-year leases.
Reserve Bank of Zimbabwe Governor Dr John Mangudya announced in February that bankers have agreed to accept 99-year leases as collateral after Government made them transferable and bankable. Previously, banks were rejecting leases claiming they were not transferable in the event that a farmer borrowed money and failed to repay.
Agribank chief executive officer Mr Sam Malaba said the bank was restructuring itself in order to better serve and increase lending into agriculture.