Malvern Mkudu
Former Hurungwe West legislator has cast aspersions in the land reform programme and questioned the sincerity of government in promoting investment in agriculture.
This comes at a time when his farm is under siege by ruling party activists who are violently taking it over. After falling out with the party hierarchy, Mliswa’s farm has been targeted by ZANU PF youths. The government has not responded to these allegations but if it is true that Mliswa’s farm has been invaded over internal political differences it will serve as a deterrent for would be agricultural funders in Zimbabwe.
Mliswa alleged that 7 of his cattle were missing and his workers were being subjected to everyday violence. He said he would surrender the farm in 24 hours to save his workers from unnecessary violence.
The former legislator revealed that he had borrowed $2 million from the Commercial Bank of Zimbabwe (CBZ) to carry out farming activities but this was no longer possible and he would be advising the bank of that effect.
‘No one is going to invest in agriculture in Zimbabwe, foreign or local. I advise even local banks not to invest in agriculture because they will lose their money’ Mliswa said.
Government has been trying to convince local banks that the 99 year leases it gave to resettled farmers can be used as collateral but these latest developments will put doubt in these claims.
Although government badly needs funding for its ZIMASSET programme, the actions of the ruling party especially in its quest for power are running parallel to this. Government is on record of blaming local banks for refusing to fund resettled farmers but the latest farm invasions vindicate the banks’ stance on the matter.
Zimbabwe fairs badly as an investment destination mainly because of the government’s failure to protect property rights or uphold the rule of law. Taking away land ‘willy nilly’ after political disputes will not assist the government in implementing its economic policies.
Asked whether they recognize 99 year leases as collateral the Banking Association of Zimbabwe said, it was a matter under consideration and referred questions to Mr Malaba for the position of the banks on that issue.
The renewed violence and seeming disregard of its own 99 year leases by the government is likely to renew skeptism of land security in the country. Banks will now be wary after the latest Mliswa debacle. The risk of lending to political tenants is just too great if these tenants then fall out with their political benefactors.
Government needs to ensure that violence on the farms is contained in order to ensure that the much needed funding is channelled to the agriculture sector if the government’s ZIMASSET programme is to be a success. There is need to solve political disputes without disrupting the economic fundamentals that can have far reaching consequences for the rest of society.
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